## ATTACHMENT A

TECHNICAL SUPPORT DOCUMENT

FOR EPA SIP ACTIONS

ON REVISIONS TO

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

30 TAC CHAPTER 116

CONTROL OF AIR POLLUTION BY PERMITS

FOR NEW CONSTRUCTION OR MODIFICATION

SUBMITTED

JANUARY 3, 2000 - GRANDFATHERED ELECTRIC

GENERATING FACILITIES

Prepared by: Richard A. Barrett, Air Permits Section, 6PD-R U.S. Environmental Protection Agency, Region 6 1445 Ross Avenue, Dallas, Texas 75202-2733 Telephone: (214) 665-7227

## TECHNICAL SUPPORT DOCUMENT

TABLE OF CONTENTS

Page

I. INTRODUCTION .............................................................................................................. 1

II. BACKGROUND OF TACB 30 TAC CHAPTER 116 RELATING TO PERMITTING

OF GRANDFATHERED ELECTRIC GE NERATING FACILITIES ............................. 1 A. Original Promulgation of Chapter 116 into the Texas SIP. ................................. 1-2 B. Approval of Texas New Source Review Regulations for Grandfathered Electric Generating Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

III. SIP REVISIONS ACTED UPON IN THIS NOTICE ........................................................3 Additions to Chapters 116. Adopted by TCEQ on December 16, 1999; Governor Submitted to EPA on January 3, 2000.

IV. EPA EVALUATION OF SUBMITTED SIP REVISIONS .............................................. 3 A. Summary of Texas Chapter 116, Control of Air Pollution by Permits for New Construction or Modification, Subchapter A: Definitions. Section 116.18. Electric Generating Facility Permits Definitions.

a. Allowance ............................................................................................................3 b. Capacity Factor .................................................................................... ............ 3-4

c. Coal ......................................................................................................................3

d. Coal-fired .............................................................................................................3 e. Compliance Account ................................................................................. ...........3

f. Control Period ..................................................................................... .................3 g. Electing EGF ....................................................................................... ............. 3-4 h. Electric Generating Facility (EGF) ................................................................. .....4

i. Grandfathered EGF ...............................................................................................4 j. Nameplate Capacity ................................................................................. ......... 4-5 k. Peaking Unit .................................................................................................... 4-5

l. Person ...................................................................................................................4

B. Summary of Texas Chapter 116, Control of Air Pollution by Permits for New Construction or Modification, Subchapter I: Electric Generating Facility Permits, sections 116.910-914, 116.916, 116.920-922, 116.930, 116.931. 1. 116.910 Applicability ...................................................................................... 5-8 2. 116.911 Electric Generating Facility Permit Application ............................. 9-12 3. 116.912 Electing Electric Generating Facilities Conditions ....................... 12-13 4. 116.913 General and Special Conditions .................................................... 13-15 5. 116.914 Emissions Monitoring and Reporting Requirements ..................... 16-19

## TECHNICAL SUPPORT DOCUMENT

6. 116.916 Permits for Grandfathered Electing Electric Generating Facilities in El Paso County .......................................................................................................20 7. 116.920 Public Participation for Initial Issuance .............................. 21-

22 8. 116.921 Notice and Comment Hearings for Initial Issuance ....................... 22-25

9. 116.922 Notice of Final Action .........................................................................25

10. 116.930 Modifications .....................................................................................26

11. 116.931 Renewal ......................................................................26

C. 30 TAC Chapter 101, Subchapter H, Emissions Banking and Trading (30 TAC Chapter 101, Subchapter H, is being evaluated in a separate TSD and proposed separately).

V. EPA CONCLUSIONS /RECOMMENDATIONS. ............................................................26

A. General Discussion ......................................................................................................2 6

B. EPA Action ..................................................................................26-27

TABLES. "Tables of Texas Commission on Environmental Quality Chapter 116, Subchapter I, Changes Pertaining to Permitting Grandfathered Electric Generating Facilities" . . .

. . . . . . . . . . . . . . . . . 5-26

I. INTRODUCTION

This technical support document (TSD) discusses certain revisions to Texas Commission on Environmental Quality's 30 Texas Administrative Code, Chapter 116, "Control of Air Pollution by Permits for New Construction or Modi fication" which implements the provisions of the Texas State Implementation Plan (SIP) for permitting grandfathered electric generating

facilities. The Governor of Texas submitted SIP revisions to the Environmental Protection Agency (EPA), after adequate notices and public hearings, on January 3, 2000.

The TSD includes a "Tables of Texas Commission on Environmental Quality Chapter 116 Subchapter I Changes Pertaining to Permitting Grandfathered Electric Generating Facilities", which shows the changes that EPA proposes to approve in new Subchapter I. The tables indicate the changes that Texas has submitted, the Federal requirements which correspond to the changes, and whether the changes meet the requirements.

## II. BACKGROUND OF TACB CHAPTER 116 RELATING TO PERMITTING OF

GRANDFATHERED ELECTRIC GENERATING FACILITIES

A. Original Promulgation of Chapter 116 (Regulation VI) into the Texas SIP

Regulation VI was first adopted by the Stat e on April 21, 1971. A revised Regulation VI adopted January 26, 1972, was submitted to EPA with the original Texas SIP and will be referred to as the "Original" SIP Regulation VI in this report. The Original Texas SIP was conditionally approved in the Federal Register on May 31, 1972, at 37 FR 10895. The notice did not cite Regulation VI nor did it disapprove the Texas SIP for failure to meet the requirements of 40 CFR 51.18, Review of New Sources and Modifica tions. Therefore it is assumed that the Regulation VI submitted to EPA on January 26, 1972, was fully approved.

B. Approval of Texas New Source Review Regulations for Grandfathered Electric Generating Facilities

Senate Bill 7 (SB 7), 76th Legislature, 1999, amended Texas Utilities Code (TUC), Title 2, concerning Public Utility Regulatory Act, Subtitle B, concerning Electric Utilities, and created a new TUC, Chapter 39, concerning Restructuring of Electric Utility Industry. SB 7 requires the commission to implement the permitting and allowance requirements of new TUC, section 39.264, concerning Emissions Reductions of “Grandfathered Facilities.” Section 39.264 requires electric generating facilities (EGF) that were existing on January 1, 1999, and that were not subject to the requirement to obtain a permit under Texas Clean Air Act (TCAA), §382.0518(g), to obtain a permit from the commission. These facilities are referred to as grandfathered facilities. A grandfathered facility is one that existed at the time the Legislature amended the TCAA in 1971. These facilities were not required to comply with (i.e., grandfathered from) the then new requirement to obtain permits for construction or modifications of facilities that emit air contaminants. It is the intent of SB 7 that for the 12-month period beginning May 1, 2003, and for each 12-month period following, annual em issions of Nitrogen Oxides (NOx) from grandfathered EGFs not exceed 50% of the NOx emissions reported to the commission for 1997. Furthermore, it is the intent of the legislation th at emissions of Sulfur Dioxide (SO2) from coalfired EGFs not exceed 75% of the SO2 emissions reported to the commission in 1997.

These new sections were adopted concurrently with amendments and new sections in 30 TAC Chapter 101, concerning General Rules. The new Division 2, concerning Emission Banking and Trading of Allowances, in the new Chapter 101, Subchapter H, concerning Emissions Banking and Trading, sets out the allowance system to be used to assist grandfathered and electing EGFs in meeting the emission reduction requirements of TUC, section 39.264. The purpose of the rulemaking in these chapters is to implement permit and emission control requirements, including emission banking and tradi ng of allowances (EBTA), for grandfathered and electing EGFs and related permit application and public notice procedures. The permit

## TECHNICAL SUPPORT DOCUMENT

3 application and public notice procedures are the subject of these amendments to Chapter 116.

III. SIP REVISIONS ACTED UPON IN THIS NOTICE

Adopted by TCEQ on December 16, 1999; Governor submittal to EPA dated January 3, 2000; EPA received on January 13, 2000. Texas submitted revisions to Chapter 116, which includes Subchapter A, definitions of words and terms when used in Subchapter I; and Subchapter I, which implements applicability for grandfathered and electing EGF’s, with related permit application and public notice procedures. Texas also submitted revisions which include the new Chapter 101, Subchapter H, Emissions Banking and Trading referred to above . 30 TAC Chapter 101, Subchapter H, will be the subject of a separate rulemaking action.

IV. EPA EVALUATION OF SUBMITTED SIP REVISIONS

A. Summary of Texas Chapter 116, Control of Air Pollution by Permits for New Construction or Modification, Subchapter A: Definitions Section 116.18. Electric Generating Facility Permits Definitions.

a. Allowance - As defined in §101.330(1) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

b. Capacity Factor - Either: (A) the ratio of an electric generating facility’s (EGF) actual annual electric output (expressed in megawatt-hours) to the EGF's nameplate capacity times 8,760 hours; or (B) the ratio of an EGF's annual heat input (in millions of British thermal units (MMBtu)) to the EGF's maximum design heat input (in MMBtu per hour) times 8,760 hours.

c. Coal - As defined in §101.330(6) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

d. Coal-fired - As defined in §101.330(7) of this (See separate rulemaking action for Chapter 101, Subchapter H).

e. Compliance Account - As defined in §101.330(8) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

## TECHNICAL SUPPORT DOCUMENT

4 f. Control Period - As defined in §101.330(9) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

g. Electing EGF - As defined in §101.330(11) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

h. Electric Generating Facility (EGF) - As defined in §101.330(12) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

i. Grandfathered EGF - As defined in §101.330(14) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

j. Nameplate Capacity - The maximum electrical output (expressed in megawatts) that an EGF can sustain over a specified period of time when not restricted by seasonal or other deratings.

k. Peaking Unit - An EGF that has: (A) an average capacity factor of no more than 10% during the past three calendar years; and

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

l. Person - As defined in §101.330(17) of this title (See separate rulemaking action for Chapter 101, Subchapter H).

Note: The above definitions, other than “Capacity Factor, Nameplate Capacity and Peaking Unit”, were all revised to cross-reference concurrently adopted definitions of these terms in 30 Texas Air Code (TAC), Chapter 101 - General Rules, Subchapter H: Emissions Banking and Trading, Division 2: Emissions Banking a nd Trading of Allowances, Section 101.330, Definitions. These definitions are being evaluated in a separate rulemaking action for Chapter 101, Subchapter H. The above definitions of “Cap acity Factor, Nameplate Capacity and Peaking Unit”, were adopted specifically to address Chapter 116, Subchapter I, and are discussed below:

Definition of “Capacity Factor“

Texas adopted a new definition of "Capacity Factor" consistent with the term as defined in 40 CFR 72 - Permits Regulation, Subpart A - Ac id Rain Program General Provisions, Section 72.2, Definitions. The submitted definition does not conflict with the federal definition or with

the Act.

## TECHNICAL SUPPORT DOCUMENT

5 Definition of “Nameplate Capacity”

Texas adopted a new definition of "Nameplate Capacity" consistent with the term as defined in 40 CFR 72 - Permits Regulation, Subpart A - Acid Rain Program General Provisions, Section 72.2, Definitions. The submitted definition does not conflict with the federal definition

or with the Act.

Definition of “Peaking Unit”

Texas adopted a new definition of "Peaking Unit" consistent with the term as defined in 40 CFR 72 - Permits Regulation, Subpart A - Acid Rain Program General Provisions, Section 72.2, Definitions. The submitted definition does not conflict with the federal definition or with

the Act.

B. Summary of Texas Chapter 116,Control of Air Pollution by Permits for New Construction or Modification, Subchapter I. Electric Generating Facility Permits, sections 116.910-914, 116.916, 116.920-922, 116.930, 116.931. (See Tables below)

.

TABLES. "Tables of Texas Commission on Environmental Quality Chapter 116, Subchapter I, Changes Pertaining to Permitting Grandfathered Electric Generating Facilities".

SUBCHAPTER I: ELECTRIC GENERATING FACILITY PERMITS

State Regulation Federal Requirement Federal Requirement Met?

§116.910. Applicability.

## TECHNICAL SUPPORT DOCUMENT

6 State Regulation Federal Requirement Federal Requirement Met?



### (a) The owner or operator of a grandfathered electric generating facility (EGF) shall apply for a permit to operate that facility under this subchapter. 40 CFR 51.160(a). (a) Each plan must set forth legally enforceable procedures that enable the

State ... to determine whether the

construction or modification ... will

result in – (1) A violation of applicable requirements of the control strategy; or (2) Interference with attainment

or maintenance of a national standard

in the State ... .

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) of 40 CFR 51.160. Meets Federal requirement. Meets 51.160, 51.163



### (b) Owners or operators of electing EGFs opting to obtain allowances under Chapter 101, Subchapter H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances), shall submit a request to alter any related existing New Source Review (NSR) permits at the time of application for a permit under subsection (a) of

this section. Alterations must be consistent with the requirements of §116.116(c) of this title (relating to Changes to Facilities). 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) of 40 CFR 51.160. Meets Federal requirement.

Meets 51.163. Streamlines the permitting process by allowing 

### electing EGFs to obtain allowances under Chapter 101, Subchapter H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances)

.

See separate rulemaking action for Chapter 101, Subchapter H.

Also, consistent with permitting for permit alterations under §116.116(c), approved 9/18/02, 67 FR 58709.



### (c) The owner, or the operator who is authorized to act for the owner, of a grandfathered or electing EGF is responsible for complying with this subchapter. 40 CFR 51.166(r)(1). Source obligation. The plan shall include enforceable procedures ... that approval to construct shall not relieve any owner ... to comply fully with ... provisions of the plan ... . Meets Federal requirement. Meets 51.166(r)(1)



### (d) A municipal corporation, electric cooperative, or river authority may exclude any 40 CFR 72.6(b)(2). Applicability. The following types of units are not affected units subject to ... the Acid Rain Program: ... (2) Any unit that ... Meets Federal requirement. Meets 72.6(b)(2), 51.160(a) and

51.163.

## TECHNICAL SUPPORT DOCUMENT

7 State Regulation Federal Requirement Federal Requirement Met?


### EGF with a nameplate capacity of 25 megawatts or less from this subchapter. The municipal corporation, electric cooperative, or river authority must notify the commission by January 1, 2000, of

its intent to exclude those EGFs. If the municipal corporation, electric cooperative, or river authority

reevaluates its intent to exclude EGFs, it may choose to permit any

of those EGFs consistent with the requirements of this subchapter. does not ... serve a generator with a nameplate capacity of greater than 25

MWe.

40 CFR 51.160(a). Legally

Enforceable Procedures. (a) Each plan must set forth legally enforceable procedures that enable the

State ... to determine whether the

construction or modification ... will

result in – (1) A violation of applicable requirements of the control strategy; or (2) Interference with attainment

or maintenance of a national standard

in the State ... .

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a)



### (e) Emissions of nitrogen oxides shall be permitted under this subchapter for any grandfathered or electing EGF. Emissions of sulfur dioxide and particulate matter shall be permitted under this subchapter only for grandfathered or electing

coal-fired EGFs. Emissions of other

air contaminants from grandfathered EGFs may be permitted under this subchapter, provided the grandfathered EGFs meet the requirements of Chapter 116, Subchapter H of this title (relating to Voluntary Emission Reduction Permits). 40 CFR 51.160(a). Legally

Enforceable Procedures. (a) Each plan must set forth legally enforceable procedures that enable the

State ... to determine whether the

construction or modification ... will

result in – (1) A violation of applicable requirements of the control strategy; or (2) Interference with attainment

or maintenance of a national standard

in the State ... .

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) Meets Federal requirement. Meets 51.160(a) and 51.163. Streamlines the permitting process by allowing TCEQ to permit 

### emissions

of other air contaminants from 

### grandfathered EGFs under Subchapter I, 

### provided they meet the requirements of Chapter 116, Subchapter H of this title (relating to Voluntary Emission Reduction Permits).



### (f) Owners or operators of grandfathered facilities as defined in §116.10 of this title (relating to General Definitions) at sites with grandfathered or electing EGFs 40 CFR 51.160(a). Legally

Enforceable Procedures. (a) Each plan must set forth legally enforceable procedures that

enable the State ... to determine Meets Federal requirement. Meets 51.160(a) and 51.163. Streamlines the permitting process by allowing TCEQ to consolidate the permits under Subchapters H and I

## TECHNICAL SUPPORT DOCUMENT

8 State Regulation Federal Requirement Federal Requirement Met?


### subject to this subchapter may consolidate any permit issued under Chapter 116, Subchapter H of this title with a permit issued under this subchapter. whether the construction or

modification ... will result in – (1) A violation of applicable requirements of the control
strategy; or (2) Interference with

attainment or maintenance of a

national standard in the State ... .

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) of 40 CFR 51.160. without lessening the stringency of the permitting requirements under Subchapter I. NOTE: Subchapter H (relating to Voluntary Emission Reduction Permits) is independent of Subchapter

I. In the 1/3/00 submittal, TCEQ did not request approval of Subchapter H.



### (g) An EGF that generates electric energy primarily for internal use but that during 1997 sold, to a utility power distribution system, less than one-third of its potential electrical output capacity, or less than 219,000 megawatt-hours, is not subject to the requirements of this chapter. 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (e) of 40 CFR 51.160.

40 CFR 72.6(b)(8). Applicability. The following types of units are not affected units subject to ... the Acid Rain Program: ... (8) A non-utility

unit.

40 CFR 72.6(b)(4)(i) & (ii). Applicability. The following types of units are not affected units subject to ... the Acid Rain Program: ... (4) A cogeneration facility which: (i) For a unit that commenced construction on or prior to November 15, 1990, was constructed for the purpose of supplying equal to

or less than one-third its 

### potential electrical output capacity or equalto or less than 219,000 megawatthours ... output ... to any utility power ... system for sale ... ; or (ii) ...

commenced construction after November 15, 1990, ... ibid. Meets Federal requirement. Meets 51.163 and 72.6(b)(8), 72.6(b)(4)(i) & (ii).

State Regulation Federal Requirement Federal Requirement Met?

## TECHNICAL SUPPORT DOCUMENT

9 §116.911. Electric Generating Facility Permit Application.

(a) Owners or operators of generating grandfathered or electing electric facilities (EGF) shall submit an application to authorize nitrogen oxides emissions and, if applicable, sulfur dioxide (SO 2 ) and particulate matter (PM) emissions. The application must include a completed Form PI-1-U, General Application. The Form PI-1-U must be signed by an authorized representative of the applicant. The Form PI-1-U specifies additional support information which must be provided before the application is deemed complete. In order to be granted an electric generating facility permit (EGFP), the owner or operator

shall submit information to the

commission which demonstrates that all of the following are met. 40 CFR 51.160(c)(2). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on ... (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160(c)(2).

(1) Measurement of emissions and performance demonstration. Applicants must propose monitoring and reporting for

the measurement of emissions and demonstration of performance consistent with §116.914 of this title (relating to Emissions Monitoring and Reporting Requirements). 40 CFR 51.160 (c)(1). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it .... Meets Federal requirement. Meets 51.16(c)(1).

(2) Control

method. New control methods proposed in initial applications must comply with the requirements in §116.617(1), (3), (4)(A) and (B) and (5) - (9) of this title (relating to Standard Permit for Pollution Control Projects). 40 CFR 51.160 (c)(1). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it ... ; (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160(c)(1). This subsection regards only initial applications, which were due on or before 9/1/00. Also, all EGFs were to obtain a permit or cease operation by 5/1/03. Regarding 911(a)(2), per a court decision, New York v. EPA, No. 02-1387 (June 24, 2005 ) issued by D.C. Circuit Court of Appeals. In the decision, the court vacated the provisions of the Federal 2002 rule regarding Clean Units and Pollution

Control Projects (PCP). In response to the court’s decision, EPA filed a Petition for Rehearing or Rehearing En Banc and Request for Clarification on

## TECHNICAL SUPPORT DOCUMENT

10 August 8, 2005. In that Petition, EPA requested clarification that the court's ruling on PCP's applies only prospectively. On December 9, 2005,

the D.C. Circuit ordered that "EPA's request for clarification as to any retroactive effect of the ruling on Pollution Control Projects be denied.”

The court also stated that because there was no specific retroactive application of this provision before the court, it was premature to rule on this request. Based on TCEQ responses to supplemental technical information requested by EPA, EPA believes that any collateral emissions increases in carbon monoxide (CO) or other pollutants due to controls installed to limit NOx or SO2 under 911(a)(2) are above the significance level for Prevention of Significant Deterioration (PSD) review for CO only, and that

these increases are located at two SB7 permitted facilities only. Furthermore,

these increases do not interfere with

attainment or maintenance of the NAAQS for CO, et al, nor cause or

contribute to increase in PSD increments. Nevertheless, based on the above court decision, subsection 116.911(a)(2) is not approvable, and therefore we are proposing to disapprove this subsection. Note that the entire State of Texas is currently in

attainment for CO.

(3) Air dispersion modeling or ambient monitoring for pollution control projects. Computerized air dispersion modeling and/or ambient monitoring may be required by the commission’s Air

Permits Division where there is an

increase in emissions to determine the air quality impacts from controls proposed under paragraph (2) of this

subsection. 40 CFR 51.160 (f). Legally

Enforceable Procedures. The procedures must discuss the air quality data and the dispersion or other air quality modeling used to meet the requirements of this subpart. Meets Federal requirement. Meets 51.160 (f).



### (4) Opacity limitations for coal-fired grandfathered and electing EGFs. The coal-fired grandfathered and electing EGFs must meet the opacity limitations of 40 CFR 51.160 (c)(1) & (d). Legally Enforceable Procedures. (c)(1) The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1) Meets Federal requirement. Meets 51.160 (c)(1) & (d).

## TECHNICAL SUPPORT DOCUMENT

11 §111.111 of this title (relating to Requirements for Specified Sources). The nature and amounts of emissions to be emitted by it .... (d) The procedures must provide that approval ... must not affect the responsibility ... to comply with ... the control strategy.

(b) Application information for electing EGFs. 40 CFR 51.160 (c)(2). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on ... (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160 (c)(2).

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

information: (A) documentation of the emissions

from the 1997 Emissions Scorecard from the EPA Acid Rain Program, or if that information is not available, the actual emissions from that electing EGF for calendar year 1997; 40 CFR 51.160 (c)(1). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it ... Meets Federal requirement. Meets 51.160 (c)(1).

(B) documentation of fuel consumption, fuel heating values, and heat input in millions of British thermal units (MMBtu) for calendar year 1997; 40 CFR 51.160 (c)(2).Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on ... (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160 (c)(2).



### (C) identification of the electing EGFs

to be included. 40 CFR 51.160 (c)(2).Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it ... ; (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160 (c)(2).

## TECHNICAL SUPPORT DOCUMENT

12 (2) Emissions of air contaminants from electing EGFs

other than NO

x , and if applicable, SO 2 and PM, already authorized by Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification), will not be authorized under this subchapter. 40 CFR 51.160 (c)(1).Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it ... Meets Federal requirement. Meets 51.160 (c)(1).

(c) The owner or operator of a grandfathered or electing EGF must submit an application for a permit under this subchapter on or before September 1, 2000. 40 CFR 51.160 (c). Legally

Enforceable Procedures. The procedures must provide for the submission , by the owner ... of the ... facility ... , of such information on - (1)

The nature and amounts of emissions to be emitted by it ... ; (2) The location, design, construction, and operation of such facility, ... as may be necessary to permit the State or local agency to make the determination specified in paragraph (a) of §51.160.

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets Federal requirement. Meets 51.160 (c) and 51.163.

(d) All applications for an

EGFP shall be submitted under the seal of a Texas licensed professional engineer if required by §116.110(e) of this title (relating to Applicability). 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) of §51.160. Meets Federal requirement.

Meets 51.163. Submission under seal of a professional engineer meets requirement of §116.110(e), approved 9/18/02, 67 FR 58709.

State Regulation Federal Requirement Federal Requirement Met?

§116.912. Electing Electric Generating Facilities.

An electing electric generating 40 CFR 51.163. Administrative Meets Federal requirement.

## TECHNICAL SUPPORT DOCUMENT

13 facility (EGF) may opt out of the requirements of this subchapter under the following conditions. procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets 51.163. Meets Federal

Guidance Document 

### “Improving Air Quality with Economic Incentive Programs” (EPA-452/R-01-001, January 2001) is the EPA guidance document for reviewing and approving discretionary EIP

submittals. The EIP Guidance applies to the establishment of a discretionary EIP for attaining or maintaining the national ambient air quality standards (NAAQS) for criteria pollutants. An opt-in facility voluntarily assumes provisions of Subchapter I. Accordingly, such source may choose to opt-out at the beginning the next control period.



### (1) The electing EGF must notify the commission of its intent to opt out prior to the beginning of the next control period. The decision to opt out of the requirements of this subchapter will become effective at the beginning of the control period that follows

notification to the commission. 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Also, 40 CFR Part 76,

Acid Rain NOx Emission Reduction Program refers to Part 74, section 74.18, SO2 Opt-Ins, where withdrawal can be requested. Meets Federal requirement.

Meets 51.163.

Meets Part 76.

(2) The electing EGF may not opt out during a control period. 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets Federal requirement.

Meets 51.163.

(3) Once the electing EGF has opted out, all of the following apply: 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets Federal requirement.

Meets 51.163.

(A) all allowances for the electing EGF will be voided by the commission and may not be banked for subsequent use;

## TECHNICAL SUPPORT DOCUMENT

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

(C) the electing EGF may not participate in the emissions banking and trading of allowances at any future date;

(D) the owner or operator shall request an alteration to the existing New Source Review permit to remove the conditions referencing the electric generating facility permit.

State Regulation Federal Requirement Federal Requirement Met?

§116.913. General and Special

Conditions.

(a) The following general conditions shall be applicable to every electric generating facility permit (EGFP) unless otherwise specified in the permit. (1) A permit issued under this subchapter authorizes the following: 40 CFR 51.160(e) - identify types and sizes of facilities, building, structures, or installations wihich will be subject

to review under this section and discuss the basis for determining which facilities will be subject to review. Meets Federal requirement. Meets 51.160(e).

## TECHNICAL SUPPORT DOCUMENT

15 (A) nitrogen oxides (NO

x ) emissions from all grandfathered and electing electric generating facilities (EGF);

(B) sulfur dioxides (SO 2 )

emissions from coal-fired grandfathered and electing EGFs.

(C) particulate matter through opacity limitations as specified in §111.111 of this title (relating to Requirements for Specified Sources) for coal-fired grandfathered and electing EGFs.

(2) An EGFP may permit

emissions of all other air contaminants from grandfathered EGFs, provided the requirements of Chapter 116, Subchapter H of this title (relating to Voluntary Emissions Reduction Permits) are met. 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets Federal requirement.

Meets 51.163. Allows Texas to permit emissions (other than SO 2 and NO

x ) in accordance w/ Chapter 116, Subchapter H. This streamlines and simplifies the permitting by allowing TCEQ to permit under both Subchapters H and I w/o lessening the stringency of the permitting requirements under Subchapter I.

(3) Grandfathered facilities as defined in §116.10 of this title (relating to General Definitions) at sites with grandfathered or electing EGFs and permitted under Chapter 116, Subchapter H of this title may be consolidated with a permit issued under this subchapter. 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160. Meets Federal requirement.

Meets 51.163. Streamlines the permitting process by allowing TCEQ to consolidate the permits under Subchapters H and I without lessening the stringency of the permitting requirements under Subchapter I. NOTE: Subchapter H is independent of Subchapter I.

(4) The grandfathered or electing EGF must comply with Chapter 101, Subchapter H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances) including the requirement to maintain allowances in a compliance account. Allowances may be transferred in accordance with §101.335 of this title (relating to Allowance Banking). 40 CFR 51.160(a)(1). (a) ... determine whether the

construction or modification ... will

result in – (1) A violation of applicable requirements of the control strategy. Meets Federal requirement. Meets 51.160(a)(1). Chapter 101, Subchapter H, Division 2, are submitted (with the submittal of Chapter 116, Subchapter I) as revisions to the SIP. These provisions of Chapter 101 will be part of the strategy for maintaining compliance with the national ambient air quality standards upon approval. Subchapter I is part of the mechanism to implement and enforce these provisions of Chapter 101, thus ensuring that these provisions of the control strategy are met. See

## TECHNICAL SUPPORT DOCUMENT

16 separate rulemaking action for Chapter 101, Subchapter H.

(5) Mass emission monitoring and reporting shall be conducted in accordance with §116.914 of this title (relating to Emissions Monitoring and Reporting Requirements). 40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence. Meets Federal requirement

. Meets 51.212

. Meets Federal requirement as it refers to §116.914

which meets federa l requirements. §116.914 specifies the requirements for testing, inspection, enforcement, and compliance.

(6) On June 1 after every control period, a grandfathered or electing EGF subject to this subchapter shall hold a quantity of allowances for emissions of

NO

x and, where applicable, SO 2 , in its compliance account that is equal to or greater than the total emissions of that air contaminant emitted during the prior control period. 40 CFR 51.160(a)(1). (a) ... determine whether the

construction or modification ... will

result in – (1) A violation of applicable requirements of the control strategy. Meets Federal requirement. Meets 51.160(a)(1). See comment for 116.913(a)(4) above.

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

emissions of each allocated air contaminant, from the prior control period to the Air Permits Division consistent with the requirements of §101.336(b) of this title (relating to Emission Monitoring, Compliance Demonstration, and Reporting). 40 CFR 51.211. Emission reports and recordkeeping. The plan must provide legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of and periodically report to the State– (a) Information on the nature and

amount of emissions from the stationary source; and (b) Other information as may be necessary to enable the State to determine compliance .... Meets Federal requirement.

Meets 51.211.

(8) Coal-fired grandfathered and electing EGFs must meet the opacity limitations of §111.111 of this title (relating to Requirements for Specified Sources). No Federal requirement relating to special conditions. Provision is approvable on basis that it improves the

SIP.

(b) Special conditions may be

included in the EGFP. No Federal requirement relating to special conditions. Provision is approvable on basis that it improves the

SIP.

State Regulation Federal Requirement Federal Requirement Met?

§116.914. Emissions Monitoring and

## TECHNICAL SUPPORT DOCUMENT

17 Reporting Requirements.

(a) Grandfathered or electing electric generating facilities (EGF) subject to 40 Code of Federal Regulations Part 75, effective June 25, 1999 (40 CFR Part 75) shall do the following.

(1) For grandfathered or electing EGFs subject to the requirements of 40 CFR Part 75, concerning Continuous Emission Monitoring, all monitoring systems must comply with the initial performance testing and periodic calibration, accuracy testing, and quality assurance/quality control testing specified in 40 CFR Part 75.

(2) For grandfathered and electing EGFs subject to 40 CFR Part 75, a certified monitoring system under 40

CFR Part 75 shall be used to demonstrate compliance with this subchapter.

(A) If the grandfathered or electing

EGF has a flow monitor certified under 40 CFR Part 75, nitrogen oxides (NO

x ) emissions in pounds per hour shall be determined using a NO

x continuous emission monitoring system (CEMS)

and the flow monitor.

(B) If the grandfathered or electing

EGF does not have a certified flow monitor, but does have a NO

x CEMS,

NO

x emissions in pounds per hour shall be determined by multiplying pounds of

NO

x per million British thermal units (lbs/MMBtu) times heat input in MMBtu per hour (MMBtu/hr). The procedures in 40 CFR Part 75, Appendix F, concerning Conversion Procedures, Section 3, shall be used to

convert the measured concentration of

NO

x and a diluent (carbon dioxide (CO 2 ) or oxygen (O 2 )) into an emission rate in lbs/MMBtu. The procedures in 40 CFR Part 75, Appendix F, Section 5, shall be used to determine the hourly heat input in MMBtu/hr. These two values (lbs/MMBtu and MMBtu/hr) 40 CFR 51.210. Each plan must provide for monitoring the status of compliance with any rules and regulations that set forth any portion of the control strategy. Specifically, the plan must meet the requirements of this subpart. 40 CFR 51.211. Emission reports and recordkeeping. The plan must provide legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of and periodically report to the State– (a) Information on the nature and

amount of emissions from the stationary source; and (b) Other information as may be necessary to enable the State to determine compliance ...

40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence.

40 CFR 51.214. Continuous emission monitoring. (a) the plan must contain legally enforceable procedures to- (1) require stationary sources subject to emission standards as part of an applicable plan to install, calibrate, maintain, and operate equipment for continuously monitoring and recording emissions; and (2) provide other information as specified in appendix P of this part. (b) the procedures must...

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) Meets Federal requirement. Meets 51.210, 51.211, 51.212, 51.214

and 51.163. The EGF title, under 30 TAC § 101.914(d) provides for the use of testing and monitoring equipment for EGFs and electing EGFs, subject to the requirements of 40 CFR Part 75

and/or 40 CFR Part 60. For those

facilities not certified under 40 CFR Part 75 or 40 CFR Part 60, 30 TAC § 101.914(b)(3) provides alternate monitoring requirements that must meet state and federal requirements for approval.

## TECHNICAL SUPPORT DOCUMENT

18 shall be multiplied together to

determine NO

x emissions in lbs/hr.

(C) The procedures in 40 CFR Part 75, Appendix E, concerning Optional NO

xEmissions Estimation Protocol for Gasfired Peaking Units and Oil-fired Peaking Units, may be used to estimate

the NO

x emission rate. of §51.160.

(b) Grandfathered or electing EGFs not subject to 40 CFR Part 75 shall comply

with: (1) the initial performance testing and periodic calibration, accuracy testing, and quality assurance/quality control testing specified in 40 CFR Part 75; or (2) those same requirements in 40 CFR Part 60, concerning New Source Performance Standards (40 CFR Part 60). Actual emissions must be determined by multiplying the CEMs data by an adjustment factor of 1.1 for all grandfathered and electing EGFs not using a 40 CFR Part 75 monitoring system if the CEMs exceeds 10% relative accuracy. 40 CFR 51.210. Each plan must provide for monitoring the status of compliance with any rules and regulations that set forth any portion of the control strategy. Specifically, the plan must meet the requirements of this subpart. 40 CFR 51.211. Emission reports and recordkeeping. The plan must provide legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of and periodically report to the State– (a) Information on the nature and

amount of emissions from the stationary source; and (b) Other information as may be necessary to enable the State to determine compliance ...

40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence.

40 CFR 51.214. Continuous emission monitoring. (a) the plan must contain legally enforceable procedures to- (1) require stationary sources subject to emission standards as part of an applicable plan to install, calibrate, maintain, and operate equipment for continuously monitoring and recording emissions; and (2) provide other information as specified in appendix P of this part. (b) the procedures must... Meets Federal requirement. Meets 51.210, 51.211, 51.212, 51.214

and 51.163.

## TECHNICAL SUPPORT DOCUMENT

19 40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160.

(3) in lieu of the monitoring required by paragraph (b)(1) or (2) of this subsection, the electric generating facility permit (EGFP) may authorize alternative monitoring to calculate mass

emissions under this section. The applicant must submit the following for review of an alternative monitoring proposal (A) a description of the monitoring approach to be used; (B) a description of the major components of the monitoring system, including the manufacturer, serial number of the component, the
measurement span of the component,

and documentation to demonstrate that the measurement span of each component is appropria te to measure all of the expected values; (C) an estimate of the accuracy of the system and documentation to

demonstrate how the estimate of accuracy was determined; (D) a description of the tests that will be used for initial certification, initial quality assurance, periodic quality assurance, and relative accuracy; and (E) additional information may be requested before approving a request for alternative monitoring. Alternative monitoring shall be incorporated into

the EGFP. 40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence. Meets Federal requirement.

Meets 51.212. Note that regarding subsection (b)(3), approval by the TCEQ of an alternative monitoring proposal does not necessarily indicate approval by

EPA.

(4) emissions in pounds per hour shall be determined using the NO

x CEMS and one of the following methods. (A) The owner or operator may elect to comply with subsection (a)(2)(A) or (B)

of this section. (B) The grandfathered or electing EGF may use a flow monitor certified under

40 CFR Part 60 to determine emissions in pounds per hour. (C) NO

x emissions in pounds per hour may be determined by multiplying the lbs/MMBtu times the heat input in 40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence. Meets Federal requirement.

Meets 51.212. Must meet approved methods in 40

CFR 75.

## TECHNICAL SUPPORT DOCUMENT

20 MMBtu/hr. The procedures in 40 CFR Part 60, Appendix A, Method 19 shall

be used to convert the measured

concentration of NO

x and a diluent (CO 2 or O 2 ) into emission rates in lbs/MMBtu. The procedures in 40 CFR Part 75, Section 5, Appendix F shall be used to determine the hourly heat input

in MMBtu/hr. These two values (lbs/MMBtu and MMBtu/hr) shall be multiplied together to determine NO

x emissions in lbs/hr;

(5) for grandfathered and electing EGFs with a heat input of less than 100 MMBtu/hr and for peaking units emissions in pounds per hour, may be determined using the procedures in Appendix E of 40 CFR Part 75 to

estimate the emission rate. 40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence. Meets Federal requirement.

Meets 51.212. Must meet approved methods in 40

CFR 75.

(c) The following requirements apply to all grandfathered and electing EGFs. (1) During a period when valid data is not being recorded by monitoring devices approved for use to demonstrate compliance with this subchapter, missing or invalid data shall be replaced with representative default data in accordance with the provisions of 40 CFR Part 75, Subpart D, concerning Missing Data Substitution

Procedures. (2) Data collected from monitoring of grandfathered and electing EGFs shall

be used to calculate the actual emissions over a control period. The information in this report shall be submitted by June 30 of each year and may be submitted with the report required under §101.336(b) of this title (relating to Emission Monitoring, Compliance Demonstration, and Reporting). At a minimum, the report shall contain the following information (A) a description of the monitoring protocol; (B) a completed Form AR-1, Emissions Monitoring Data Form; (C) other information as necessary to 40 CFR 51.212. Testing, inspection, enforcement, and compliance. Requires plan to include periodic testing and inspection of stationary sources, establish system for detecting violations, and using test methods for each emission using methods promulgated or approved by EPA and not precluding the use of any credible

evidence. Meets Federal requirement.

Meets 51.212. Must meet approved methods in 40

CFR 75.

## TECHNICAL SUPPORT DOCUMENT

21 validate the actual emissions during the prior control period, including, but not limited to, periodic calibration results and maintenance logs.

State Regulation Federal Requirement Federal Requirement Met?

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

C t Grandfathered and electing electric generating facilities in El Paso County are not required to meet nitrogen oxides allowance requirements if the

commission or EPA determines that reductions in nitrogen oxides emissions in the El Paso Region otherwise required by this subchapter would

result in increased ambient ozone levels in El Paso County. 40 CFR 51.160. Legally enforceable procedures. (a) Each plan must set forth legally enforceable procedures that enable the State or local agency to

determine whether the construction or modification of a building, structure, or installation, or combination of these

will result in – (1) a violation of the applicable portions of the control strategy; or (2) interfere with attainment or

maintenance of a national standard in the State in which the proposed source (or modification) is located or in a Meets Federal requirement.

Meets 51.160. On November 28, 1994, at 59 FR 60709, EPA conditionally approved two petitions from Texas to exempt El Paso County from the requirement NO

x control requirements of Section 182(f) of the Act. Section 182(f) presumes

that NO

x is an ozone precursor in an ozone nonattainment area (El Paso is a serious ozone nonattainment area). Section 182(f) further provides that EPA may waive this requirement to regulate NO

x as an ozone precursor

## TECHNICAL SUPPORT DOCUMENT

22 neighboring State. when a demonstration is made that NO

x reductions would not contribute to

ozone attainment.

EPA approved the NO

x waiver for El Paso County based upon TCEQ's demonstration that El Paso County would attain the ozone NAAQS by the CAA statutory deadline but for emissions emanating from outside the

United States.

The record for the NO

x waiver for El Paso County demonstrates that EPA

has 

### determined that reductions in

NO

x 

### emissions in the El Paso Region otherwise required by this subchapter would result in

increased ambient ozone levels in El Paso County. (e) The procedures must identify types and sizes of facilities, buildings, structures, or installations which will be subject to review under this section. The plan must discuss the basis for determining which facilities will be subject

40 CFR 51.163. Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specifies in paragraph (a) of §51.160.

Section 179B of the Act. EPA will approve a SIP if the area meets all other CAA requirements and established that implementation of the plan would achieve attainment of the ozone standard by the CAA statutory deadline "but for emissions emanating

from outside the United States."

Because the El Paso nonattainment

area shares a common arced with Juarez, Mexico, the section 179B provisions apply in El Paso County.

State Regulation Federal Requirement Federal Requirement Met?

§116.920. Public Participation for

Initial Issuance.

(a) An applicant for an electric generating facility permit (EGFP) shall publish notice of intent to obtain the permit in accordance with Chapter 39 of this title (relating to Public Notice). 40 CFR 51.161(b)(3) - A notice by prominent advertisement in the area

affected of the location of the source information and analysis specified in paragraph (b)(1) of this section. Meets Federal requirement. Meets 51.161(b)(3). Note that Chapter 39 is adequate for initial issuance. If the source requests a modification, they become subject to §116.930. Modifications, and must comply with Subchapter B of this chapter (relating to New Source Review Permits). Note also that the

## TECHNICAL SUPPORT DOCUMENT

23 public notice and participation requirements in Chapter 39 of this title are the subject of a separate rulemaking.

(b) Public notice for an EGFP may be combined with the public notice for a voluntary emission reduction permit, under Chapter 116, Subchapter H of this title (relating to Voluntary Emission Reduction Permits). 40 CFR 51.161 (b)(3) - A notice by prominent advertisement in the area

affected of the location of the source information and analysis specified in paragraph (b)(1) of this section. This is the requirement for the EGFP; however, public notice for a voluntary emission reduction permit is not required Meets Federal requirement for

EGFP. Meets 51.161(b)(3).

Note that there is no Federal requirement for public notice for a voluntary emission reduction permit

. The federal regulations do not require a State permitting authority to publish notice of a source in conjunction with the public notice for a voluntary emission reduction permit.

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

commission to hold a notice and comment hearing on the EGFP application. The public comment period shall end 30 days after the publication of Notice of Receipt of Application and Intent to Obtain Permit

under section 39.418 of this title (relating to Notice of Receipt of Application and Intent to Obtain Permit). Any hearing request must be made in writing during the 30-day public comment period. 40 CFR 51.161. Public availability of information. The federal regulations do not require a State permitting authority to provide a notice and comment hearing regarding an EGFP. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such hearing. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(d) Any hearing regarding initial

issuance of an EGFP shall be conducted under the procedures in §116.921 of this title (relating to Notice and Comment Hearings for Initial Issuance)

and not under the APA. 40 CFR 51.161. Public availability of information. The federal regulations do not require a State permitting authority to provide a hearing regarding initial issuance of an EGFP. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such hearing. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approveable because it improves the SIP.

(e) Responses to public comments and

the notice of the commission’s decision to issue or deny an EGFP shall be conducted under the procedures in §116.922 of this title (relating to Notice of Final Action). 40 CFR 51.161 (b)(1) - Availability for public inspection in at least one

location in the area affected of the information submitted by the owner or operator and of the State or local agency’s analysis of the effect on air quality. Meets Federal requirement. Meets 51.161 (b)(1).

(f) A person affected by a decision to issue or deny an EGFP may move for rehearing under the appropriate procedure in Chapter 50 of this title (relating to Action on Applications and 40 CFR 51.161. Public availability of information. The federal regulations do not require a State permitting authority to provide a rehearing regarding the decision to issue or deny Because federal regulations do not prohibit or limit a State permitting authority from providing such rehearing, Texas' inclusion of such provision in its regulations is

## TECHNICAL SUPPORT DOCUMENT

24 Other Authorizations) and may seek judicial review under TCAA, §382.032 (relating to Appeal of Commission Action). an EGFP. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such rehearing. approvable because it improves the State program.

State Regulation Federal Requirement Federal Requirement Met?

§116.921. Notice and Comment Hearings for Initial Issuance.

(a) The notice and comment hearing requirements apply only to the initial issuance of a electric generating facility permit (EGFP). 40 CFR 51.161 (b)(3). A notice by prominent advertisement in the area

affected of the location of the source information and analysis specified in paragraph (b)(1) of this section. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(b) The commission shall decide whether to hold a hearing. The commission is not required to hold a hearing if the basis of the request by a person who may be affected by emissions from a grandfathered or electing electric generating facility (EGF) is determined to be unreasonable. If a hearing is requested by a person who may be affected by emissions from a grandfathered or electing EGF, and that request is reasonable, the commission shall hold a hearing. 40 CFR 51.160. Public availability of information. The federal regulations do not require a State permitting authority to provide a hearing regarding an EGFP. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such hearing. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(c) At the applicant’s expense, notice of a hearing on a draft EGFP must be published in the public notice section of one issue of a newspaper of general circulation in the municipality in which the grandfathered or electing EGF is located, or in the municipality nearest to the location of the grandfathered or electing EGF. The notice must be published at least 30 days before the date set for the hearing. The notice must include the following:

(1) the time, place, and nature of the hearing;

(2) a brief description of the purpose 40 CFR 51.161(b)(3) - A notice by prominent advertisement in the area

affected of the location of the source information and analysis specified in paragraph (b)(1) of this section. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approveable because it improves the SIP.

## TECHNICAL SUPPORT DOCUMENT

25 of the hearing; and

(3) the name and phone number of the

commission office to be contacted to verify that a hearing will be held.

(d) Any person, including the applicant, may submit oral or written statements and data concerning the

draft EGFP.

(1) Reasonable time limits may be set for oral statements, and the submission of statements in writing may be required.

(2) The period for submitting written comments is automatically extended to the close of any hearing.

(3) At the hearing, the period for submitting written comments may be extended beyond the close of the hearing. 40 CFR 51.160. Public availability of information. The federal regulations do not require a State permitting authority to provide a hearing regarding an EGFP. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such hearing. Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approveble because it improves the SIP.

(e) A tape recording or written transcript of the hearing must be made available to the public. 40 CFR 51.161 (b)(1) - Availability for public inspection in at least one

location in the area affected of the information submitted by the owner or operator and of the State or local agency’s analysis of the effect on air quality Because federal regulations do not prohibit or limit a State permitting authority from providing such hearing, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(f) Any person, including the applicant, who believes that any

condition of the draft EGFP is inappropriate or that the preliminary decision to issue or deny the permit is inappropriate, shall raise all issues and submit all arguments supporting that position by the end of the public comment period. 40 CFR 51.161(b)(2) - A 30-day period for submittal of public comment Meets Federal requirement. Meets 51.161(b)(2). Meets the requirement for a public comment period.

(g) Any supporting materials for 40 CFR 51.161 (b)(1) - Availability for Meets Federal requirement.

## TECHNICAL SUPPORT DOCUMENT

26 comments submitted under subsection (f) of this section must be included in full and may not be incorporated by reference, unless the materials are one of the following:

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

(2) state or federal statutes and regulations;

(3) EPA documents of general applicability; or

(4) other generally available reference

materials. public inspection in at least one

location in the area affected of the information submitted by the owner or operator and of the State or local agency’s analysis of the effect on air quality Meets 51.161(b)(1). Meets the requirement of availability for public inspection

(h) The commission shall keep a

record of all comments received and issues raised in the hearing. This record is available to the public. 40 CFR 51.161 (b)(1) - Availability for public inspection in at least one

location in the area affected of the information submitted by the owner or operator and of the State or local agency’s analysis of the effect on air quality Meets Federal requirement. Meets 51.161(b)(2). Meets the requirement of availability for public inspection

(i) The draft EGFP may be changed based on comments pertaining to whether the permit provides for compliance with the requirements of this subchapter. 40 CFR 51.160. Public availability of information. The federal regulations do not require a State permitting authority to make changes to an EGFP based on comments regarding compliance requirements. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such changes. Because federal regulations do not prohibit or limit a State permitting authority from providing such changes, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(j) The commission shall respond to comments consistent with §116.922 of this title (relating to Notice of Final Action). 40 CFR 51.160. Public availability of information. The federal regulations do not require a State permitting authority to provide notice of its final

action to the commenter or the applicant. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such

notice. Because federal regulations do not prohibit not limit a State permitting authority from providing such notice, Texas' inclusion of such provision in its regulations is approvable because it impproves the SIP.

State Regulation Federal Requirement Federal Requirement Met?

§116.922. Notice of Final Action.

(a) After the public comment period or the conclusion of any notice 40 CFR 51.160. Public availability of information. The federal regulations Because federal regulations do not prohibit not limit a State permitting

## TECHNICAL SUPPORT DOCUMENT

27 and comment hearing, the commission shall send notice by first-class mail of the final action on the application to any person who commented during the public comment period or at the hearing, and to the applicant. do not require a State permitting authority to provide notice of its final

action to the commentor or the applicant. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such

notice. authority from providing such notice, Texas' inclusion of such provision in its regulations is approvable because it improves the SIP.

(b) The notice must include the following: (1) the response to any comments submitted during the public comment period; (2) identification of any change

in the conditions of the draft electric generating facility permit and the reasons for the change; (3) a statement that any person affected by the decision of the commission may petition for rehearing under the appropriate procedure in Chapter 50 of this title (relating to Action on Applications and Other Authorizations) and may seek judicial review under TCAA, §382.032 (relating to Appeal of Commission Action). 40 CFR 51.160. Public availability of information. The federal regulations do not require a State permitting authority to provide notice of its final

action to the commentor or the applicant. Furthermore, the federal regulations do not prohibit or otherwise limit a State from providing such

notice. Because federal regulations do not prohibit nor limit a State permitting authority from providing such notice, Texas' inclusion of such provision in its regulations is approvable because it improves the State program.

State Regulation Federal Requirement Federal Requirement Met?

§116.930. Modifications.

The owner or operator planning a modification of a facility permitted under this subchapter must comply with Subchapter B of this chapter (relating to New Source Review Permits) before work is begun on the

construction of the modification. 40 CFR 51.163 Administrative procedures. The plan must include the administrative procedures, which will be followed in making the determination specified in paragraph (a) of §51.160. Meets Federal requirement. Subchapter B is SIP approved. Also, the NSR Reform has no impact upon

this section.

State Regulation Federal Requirement Federal Requirement Met?

§116.931. Renewal.

Electric generating facility permits

shall be renewed in accordance with Chapter116, Subchapter D of this title (relating to Permit Renewals). 40 CFR 51.163 Administrative procedures. The plan must include the administrative procedures, which will be followed in making the Meets Federal requirement. This section provides additional procedures, and Texas' inclusion of such provision in its regulations is

## TECHNICAL SUPPORT DOCUMENT

28 determination specified in paragraph (a) of §51.160. approvable because it improves the State program.



## C. 30 TAC Chapter 101, Subchapter H, Emissions Banking and Trading. (30 TAC Chapter 116, Subchapter H, is being evaluated in a separate TSD and proposed separately).

V. EPA CONCLUSIONS/RECOMMENDATIONS

A. General Discussion

The Governor of Texas submitted numerous revisions to the Texas SIP to EPA relating to the permitting of new and modified sources. EP A is proposing to approve revisions submitted on January 3, 2000. The sections that Texas submitted, and which EPA is proposing to approve, are identified in Section IV of this TSD, “EPA EVALUATION OF SUBMITTED SIP REVISIONS”, and the section titled “Tables”.

B. EPA Action

For the reasons stated herein, EPA determines that the above SIP submittals or revisions to Chapter 116, Subchapter A: Definitions, s ection 116.18. Electric Generating Facility Permits Definitions; and Subchapter I: Electric Generating Facility Permits, sections 116.910-914, 116.916, 116.920-922, 116.930, and 116.931 of the Title 30 of the Texas Administrative Code satisfies the requirements of Title I of the Act. Section IV herein contains detailed evaluations of each of the sections submitted by Texas and the basis for EPA's proposal to approve of these

sections.