Texas State Implementation Plan Infrastructure and Interstate Transport Elements Required Under Section 110(a)(2 ) for the 1997 8-hour Ozone and the 1997 and 2006 Fine Particulate Matter (PM 2.5 ) NAAQS

Docket ID EPA-R06-OAR-2008-0638

Technical Support Document September 2011

Table of Contents:
I. Introduction A. Section 110(a)(1) and (2) Infrastructure SIP Elements B. Section 110(a)(1) and (2) Transport SIP Elements C. Legal Authority and Re visions to the Texas SIP D. The Greenhouse Gas (GHG) Component II. SIP elements required under Sect ion 110(a)(2) for the 1997 8-hour ozone
and the 1997 and 2006 PM 2.5 NAAQS, the State submittals and EPA analysis
III. EPA’s Recommendation

A. What is a Partial Approv al, Partial Disapproval?

B. EPA’s Recommendation on the Section 110(a)(1) and (2) Infrastructure SIP Elements

C. EPA’s Recommendation on the Section 110(a)(1) and (2) Transport SIP Elements
IV. References V. Appendix to Evaluate NOx as a Precursor

I. Introduction In this technical support document (TSD), EP A is evaluating the submittals provided by the Texas Commission for Environmental Quality (TCEQ) to meet the requirements of section 110(a)(2) of the Clean Air Act (CAA or Act) for the 1997 ozone and the 1997 and 2006 national ambient air quality standards (NAAQS or standa rds) for 8-hour ozone and fine particulate matter. More detail on these standards, section 110(a)(1) and (2) of the Act, and the submittals we are reviewing to satisfy the section 110( a)(2) requirements for Texas are provided in subsections A - D, below. Throughout this do cument, “we,” “us,” and “our” means EPA. Section II of the TSD provides a descripti on of each element required under section 110(a)(2) of the Act, the State’s re sponse, and our analysis of the State’s response. Copies of the State’s submittals are in the docket for this rulemaking.
Section III of the TSD includes our recomme ndation for action on each of the elements
reviewed herein.
Section IV of the TSD contai ns a list of the guidance doc uments referenced herein. Copies of these guidance documents ar e in the docket for this rulemaking.

A. Section 110(a)(1) and (2) Infrastructure SIP Elements On July 18, 1997, EPA promulgated a new NAA QS for ozone (published in volume 62 of the Federal Register (FR), beginning on page 38856, denoted 62 FR 38856) and a new standard for fine particulate matter (62 FR 38652). For ozone, EPA revised the NAAQS to2 provide an 8-hour averaging period (versus the 1-hour averaging peri od for the 1-hour ozone standard), and set the level of the standard to 0.08 parts per million (ppm). The 1-hour ozone NAAQS was 0.12 ppm. For particulate matter (P M), EPA promulgated a new 24-hour and new annual standard for fine PM, which applies to particles with an aerodyna mic diameter less than or equal to 2.5 micrometers (denoted as PM 2.5 ). The annual PM 2.5 standard was set at 15 micrograms per cubic meter ( μ g/m 3 ) and the 24-hour standard was set at 65 μ g/m 3 . On October 17, 2006, we published revised standa rds for PM (71 FR 61144). For PM 2.5 the annual standard
of 15 μ g/m 3 was retained and the 24-hour standard was revised to 35 μ g/m 3 . For PM 10 the annual
standard was revoked and the 24-hour standard (150 μ g/m 3 ) was retained. Under section 110(a)(1) of the Act, all states are require d to submit plans to provide for the implementation, maintenance and enforcemen t of each NAAQS within 3 years following the promulgation of the NAAQS, or within such sh orter period as EPA may prescribe. Section 110(a)(2) lists 14 elements that must be includ ed in these state implementation plan (SIP) submissions. The requirements include SIP “infrast ructure” elements such as requirements for air pollution control measures and monitoring that are designed to assure attainment, maintenance and enforcement of the NAAQS. Th e statutory language in sections 110(a)(1) and (2) is provided in the docket for this rulemaking. On October 2, 2007, we issued “Guidance on SIP Elements Required Under Sections 110(a)(1) and (2) for the 1997 8-hour Ozone and 1997 PM 2.5 National Ambient Air Quality Standards,” Memorandum from William T. Harn ett, Director, Air Quality Policy Division (AQPD), Office of Air Quality Planning and Standards (OAQPS). 1 On September 25, 2009, we issued “Guidance on SIP Elements Required U nder Sections 110(a)(l) and (2) for the 2006 24- Hour Fine Particle (PM2.5) National Ambient Air Quality Standards (NAAQS),” Memorandum also from William T. Harnett, Director, AQPD, OAQPS. Each of these guidance memos addresses the SIP elements found in 110(a)(2). However, the October 2, 2007 Guidance does not address section 110(a)(2)(D)(i) (d ealing with interstate transpor t), which is being addressed separately. 2 In each of these guidance memos, the guidan ce states that to the extent that existing SIPs already meet the requirements, stat es need only certify that fact to us. On December 12, 2007, the Texas Commission on Environmental Quality (TCEQ) submitted a letter to EPA identifying the 8-hour ozone SIP revisions they had submitted to EPA and stating that they would continue to review the remaining commitments. In a letter to EPA dated March 11, 2008, TCEQ stated that they were reviewing the Texas SIP to supplement the
December 2007 submittal. On March 27, 2008, EPA published findings co ncerning whether States had made the 110(a)(2) submissions for the 1997 ozone NAAQS (73 FR 16205). EPA determined that Texas had not made the necessary submission. This fi nding established a 24-month deadline for the promulgation by EPA of a Federal Implementati on Plan (FIP) addressing these specific SIP elements, in accordance with section 110(c)(1). On April 4, 2008, TCEQ submitted a letter stating that Texas has addressed any potential
infrastructure issues associated with ozone and PM 2.5 and fulfilled its infrastructure SIP

1 This and any other guidance documents referenced in this action are in the docket for this rulemaking.

2 EPA finalized a FIP on July 6, 2011, to limit emissions of ozone precursors and PM that affect the ability of
downwind states to attain the 1997 ozone and 1997 and 2006 PM 2.5 NAAQS (76 FR 48208, August 8, 2011). Known as EPA’s Cross-State Air Pollution Rule, it requires that Texas (and 26 other states in the eastern half of the United States) must significantly improve air quality by re ducing power plant emissions that cross state lines and contribute to ground-level ozone and fine particle pollution in other states. For additional information, please see www.epa.gov/crossstaterule.3 obligations. An enclosure to the letter provi ded information on Texas SIP provisions supporting the 110(a)(2) requirements. On October 22, 2008, EPA published findings concerning whether States had made the 110(a)(2) submissions for the 1997 PM 2.5 NAAQS (73 FR 62902). In th is action EPA found that the necessary submission was made by Texas. On November 23, 2009, the TCEQ submitted a le tter to fulfill its infrastructure SIP obligations for the 2006 PM 2.5 NAAQS. An enclosure to the letter provided information on Texas SIP provisions supporting the 110(a)(2) elem ents. The submittal was deemed complete by action of law six months after the submittal was received by EPA.

B. Section 110(a)(1) and (2) Transport SIP Elements As noted above, the infrastructure element rega rding interstate tran sport, 110(a)(2)(D)(i),
is not addressed in the 2007 Infrastructure SIP Guidance. On August 15, 2006, EPA issued its “Guidance for State Implementation Plan (SIP ) Submission to Meet Current Outstanding Obligations Under Section 110(a)(2)( D)(i) for the 8-Hour Ozone and PM 2.5 National Ambient Air Quality Standards” (2006 Guidance). EPA developed the 2006 Guidance to make recommendations to states for making submi ssions to meet the requirements of section 110(a)(2)(D)(i) for the 1997 8-hour ozone and PM 2.5 standards. As identified in the 2006 Guidance, the “good neighbor” provisions in secti on 110(a)(2)(D)(i) require each state to submit a SIP that prohibits emissions that adversely affect another state in the ways contemplated in the statute. Section 110(a)(2)(D)(i)(I) and (II) contain four distinct requirements (or prongs) related to the impacts of interstate transport. The SI P must prevent sources in the state from emitting pollutants in amounts which will: (1) contribute significantly to nonattainment of the NAAQS in other states; (2) interfere with maintenance of the NAAQS in other states; (3) interfere with provisions to prevent significant dete rioration of air quality in othe r states; and (4) interfere with efforts to protect visi bility in other states. 3
On May 1, 2008, we received a SIP revision from the State of Texas intended to address the requirements of section 110(a)(2)( D)(i) for both the 1997 8-hour ozone and PM 2.5 standards. In this rulemaking we are addres sing only the requirement that pert ains to preventing sources in Texas from emitting pollutants that will interfere w ith measures required to prevent significant deterioration of air quality in other states. In its submission, Texas stated that its New Source Review (NSR) 4 program for major sources satisfies this requirement. With this submission, the state would meet the requirement as contemplat ed in the 2006 Guidance for SIP submissions to meet this specific element in CAA 110(a)(2)(D)(i)(II). In a separate action, we have finalized a FI P, called the Cross-State Air Pollution Rule (CSAPR), which requires Texas (and 26 other states in the eastern half of the United States) to significantly improve air quality by reducing powe r plant emissions that cross state lines and contribute to ground-level oz one and fine particle po llution in other states. 5 This FIP is intended to address section 110(a)(2)(D)(i)(I) for Texa s, to prevent sources in Texas from emitting pollutants in amounts that will contribute signific antly to nonattainment of the NAAQS in other

3 Section 110(a)(2)(D)(i)(I) addresses prongs (1) and (2); section 110(a)(2)(D)(i)(II) addresses prongs (3) and (4).

4 NSR refers to the statutory and regulatory programs th at regulate the construction and modification of stationary sources. A more detailed discussion is provided below in section II.3, regarding the program for enforcement of control measures, pursuant to section 110(a)(2)(C) of the Act.

5 76 FR 48208.4 states and interfere with main tenance of the NAAQS in other states. We are not addressing section 110(a)(2)(D)(i)(I) in this action; see Section II.4 below for additional information.

C. Legal Authority and Revisions to the Texas SIP Under the Texas Health and Safety Code (THSC), sections 382.011, 382.012 and 382.023, the TCEQ has the authority to control the qua lity of the state’s air and to issue orders consistent with the policies and purposes of the Texas Clean Air Act (TCAA), codified at Chapter 382 of the Texas Health and Safety Code . The TCAA was adopted into the Texas SIP in 1981 (46 FR 61124) and at that time, the TCAA na med the Texas Air Control Board (TACB) as the state air control agency, with principal authority in the state on matters relating to the quality of air resources. In 1991, the Texas Legislatur e abolished the TACB and its powers, duties, responsibilities and functions we re transferred to the Texas Natural Resource Conservation Commission (TNRCC). In 2001, the Te xas Legislature changed the name of the TNRCC to the Texas Commission on Environmental Quality. The TCAA is now codified under the Texas Health and Safety Code (THSC), Chapter 382. The current version of the TCAA, which pertains to the TCEQ and is codified under the THSC, reta ins the authorities appr oved into the SIP in
1981. On March 11, 2011, the TCEQ submitted revisions to their NSR program to meet the requirements of the “NSR Reform” publishe d on December 31, 2002 (67 FR 80186) and to amend revisions that EPA disapproval on September 15, 2010 (75 FR 56424). The 2011 submittal contains numerous revisions, including three that assist the State in meeting the infrastructure requirements. Several revisions in the 2011 submittal address the State’s program for PSD that provide for nitrogen oxides (NOx) to be treated as a precursor to ozone formation in
the State’s PSD SIP. 6
The portions of the 2011 submittal that we are proposing for approval in this action are
evaluated in Attachment A to this TSD. We believe these are necessary provisions for implementation of the 1997 ozone standard, pursuan t to the Final Rule to Implement the 8-Hour Ozone National Ambient Air Quality Standard - Phase 2 (70 FR 71612, published November 29, 2005). More detail is also pr ovided in Section II.3 below.

D. The Greenhouse Gas (GHG) Component EPA has recently undertaken a seri es of actions pertaining to the regulation of GHGs that although for the most part distinct from one a nother, impact today’s proposed action on the Texas SIP. Four of these actions include, as they are commonly called, the “Endangerment Finding” and “Cause or Cont ribute Finding” which EPA issued in a single final action, 7 the “Johnson Memo Reconsideration,” 8 the “Light-Duty Vehicle Rule,” 9 and the “Tailoring Rule.” 10

6 Texas submitted revisions on February 1, 2006 that wo uld accomplish this. However, the 2006 submittal did not meet the federal NSR SIP requirements and the provisions for NOx as a precursor were not treated as severable. Thus the revision as a whole was disapproved (75 FR 56424). By severable, we mean that the portions of the SIP revision that address NOx as a precursor can be implemented independently of the remaining portions of the submittal, without affecting the string ency of the submitted rules. In ad dition, the remainin g portions of the submittal are not necessary for approval of the provisions addressing NOx as a precursor.

7 “Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act.” 74 FR 66496 (December 15, 2009).

8 “Interpretation of Regulations that Determine Pollutants Covered by Clean Air Act Permitting Programs.” 75 FR 17004 (April 2, 2010).5 Taken together and in conjunction with the CAA, these actions established regulatory requirements for GHGs emitted from new motor vehicles and new motor vehicle engines; determined that such regulations, when they took effect on January 2, 2011, subjected GHGs emitted from stationary sources to permitting requirements for Prevention of Significant Deterioration (PSD); and limite d the applicability of PSD requirements to GHG sources on a phased-in basis. EPA took this last action in the Tailoring Rule which more specifically, established appropriate GHG emi ssion thresholds for determini ng the applicability of PSD requirements to GHG-emitting sources. However, Texas did not address or provi de adequate legal authority for the GHG program’s application to all po llutants that would become newly subject to regulation in the future, including non-NAAQS pollutants, among th em GHGs. On this basis, EPA on December 30, 2010 corrected its previous full approval of Te xas’s PSD program to be a partial approval and partial disapproval (75 FR 82430). Further, as required following the partial disapproval, EPA in this same action promulgated a FIP to establish a PSD permitting program in Texas for GHG-emitting sources (75 FR 82430). EPA took the FIP through interim final rulemaking, effective upon publication, to ensure the availab ility of a permitting authority--EPA-- in Texas for GHG-emitting sources when they became s ubject to PSD on January 2, 2011. The interim FIP allowed those sources to proceed with plans to construct or expand. The interim rule expired on April 30, 2011 and is replaced by th e final rule (76 FR 25178, May 3, 2011). As we discuss further in Section II.3 below, Texas currently does nothave adequate legal authority to address the new GHG PSD permitting re quirements at statutory levels of emissions and thus, the Texas SIP does not satisfy portions of elements within the infrastructure and transport requirements.

II. SIP elements required under Section 110( a)(2) for the 1997 8-hour ozone and fine particulate matter NAAQS, the Stat e submittals and EPA analysis

The federally approved SIP for each state is lis ted in Title 40, Part 52, of the US Code of Federal Regulations (denoted 40 CFR 52). The first section in this subpart for any state is the “Identification of plan.” The Identification of plan lists the EPA-approved provisions of the SIP for each state, as provided under section 110 of the Act, 42 U.S.C. 7410, and 40 CFR 51 to meet the NAAQS. The status of the Te xas SIP is provided in 40 CFR Part 52, Subpart SS, sections 2270 to 2311. The Identification of plan for Texa s is in section 2270; this constitutes the applicable SIP for Texas, for purposes of the Act.
Per the General Preamble to the 1990 Clean Air Act Amendments (April 16, 1992 at 57 FR 13498), section 110(a)(2) sets forth elements th at a SIP must contain in order to be fully approved. 11 Below we examine the elements required in section 110(a)(2) and the documentation provided by the TCEQ. Where it is us eful, we include tables showing the date that the applicable state rules were approved by EPA into the SIP.

9 “Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy Standards; Final Rule.” 75 FR 25324 (May 7, 2010).

10 Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule; Final Rule.” 75 FR 31514 (June 3, 2010).

11 The discussion of section 110(a)(2), subsections (A) through (M) begins on p. 13556 of the General Preamble.6 1. Enforceable emission limits and other control measures: Section 110(a)(2)(A) requires
SIPs to include enforceable emission limits a nd other control measures, means or techniques, schedules for compliance and other related matte rs. EPA notes that the specific nonattainment area plan requirements of secti on 110(a)(2)(I) are subj ect to the timing requirement of section 172 (non-attainment plan provisions).

The State’s response : The TCEQ has promulgated rules to implement and enforce the NAAQS and other air quality standards. These rule s include programs for banking and trading of emissions, as well as permits and fees. Periodic revisions to the SIP establish timetables and schedules for improving air quality in the nonattainment areas, and areas that may become nonattainment for ozone. TCEQ referenced the following from Title 30 of the Texas Administrative Code (30 TAC) as re levant to meet this requirement:

Chapter 7 Memoranda of Understanding Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 111 Control of Air Pollution from Visible Emissions and Particulate Matter Chapter 112 Control of Air Pollution from Sulfur Compounds Chapter 113 Standards of Performance for H azardous Air Pollutants and for Designated
Facilities and Pollutants Chapter 114 Control of Air Po llution from Motor Vehicles Chapter 115 Control of Air Polluti on from Volatile Organic Compounds Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification Chapter 117 Control of Air Po llution from Nitrogen Compounds Chapter 118 Control of Air Pollution Episodes

EPA analysis : Section 110(a)(2)(A) require s that all measures and other elements in the SIP be enforceable. This subsection also authorizes SIPs to contain certain nontraditional techniques for reducing pollution – economic incen tives, marketable permits, and auctions of emissions rights. The EPA reads this language to require even these other means of achieving reductions to be
enforceable. 12 The federally approved Texas SIP include s a variety of measures to reduce PM and precursors to ozone, which are summarized in the following paragraphs and listed in Table 1 below. Once adopted into the SIP, the measures are enforceable by the state and EPA, and US citizens are offered legal recourse to address violations as described in section 304 of the Act. To coordinate transportation-related cont rols, a Memorandum of Understanding (MOU) between the Texas Department of Transportation (TxDOT) and TNRCC 13 was approved and adopted by the State into 30 TAC Chapter 7 (den oted 30 TAC 7). This MOU establishes periods
for review of documents and ensures coordina tion between the agencies on transportation projects, including for example, the vehicle inspection and maintenance (I/M) program and transportation control measures (TCMs). 30 TAC 101 defines a variety of control met hods in Subchapter A (General Rules); and provides for control techniques and compliance timeframes in Subchapters F (Emissions Events

12 General Preamble to the 1990 Clean Air Act Amendments (April 16, 1992 at 57 FR 13498, p. 13556)

13 In 2001, the Texas Legislature changed the name of the TNRCC to the Texas Commission on Environmental Quality.7 and Scheduled Maintenance, Startup, and S hutdown Activities) and H (Emissions Banking and Trading). 30 TAC 106 addresses general and specific re quirements for permits by rule, including enforceable emission limits, control methods and compliance timeframes. 30 TAC 111 provides control of air pollution from visible emissions and PM, and includes requirements for specified sources, alternate opacity limitations, emissi on limits, control methods, and compliance timeframes. 30 TAC 112 provides emission limits for sulfur compounds and provides compliance timeframes. 30 TAC 114 provides emissi on limits and a variety of control techniques to reduce pollutants from motor vehicles, incl uding inspection and maintenance (I/M) programs, idling restrictions and fuels, and addresses fleets, on- and non-road engines and incentive programs; and provides compliance timeframe s. 30 TAC 115 provides emission limits for volatile organic compounds (VOCs), contro l methods and compliance dates. 30 TAC 116 addresses control of air pollution by permits fo r new construction or modification of existing
sources in attainment and nonattainment areas. 30 TAC 117 provides emission limits for nitrogen compounds and includes cont rol methods and compliance dates. 30 TAC 118 controls emergency episodes of air pollution and provides a compliance timeframe. The State's rules at 30 TAC 7, 101, 106, 111, 112, 114 - 118 14 were approved by EPA for adoption into the SIP and thus are enforceable by the State and EPA, and US citizens are offered legal recourse to address violati ons as described in section 304 of the Act. The Texas SIP meets the requirements of section 110(a)(2)(A).

Table 1: Texas rules relevant to meeting se ction 110(a)(2)(A), as submitted by TCEQ

Section of SIP Referenced in Texas’ Submittal EPA Approval/FR Citation 30 TAC 7.119: MOU for TxDOT and TCEQ December 12, 2005 at 70 FR 73380

30 TAC 101.1: Definitions March 30, 2005 at 70 FR 16129 101.223: Actions to Reduce Excessive Emissions August 26, 2005 at 70 FR 50205 30 TAC 101, Subchapter H, Divisions: 1: Emission Credit Banking and Trading 3: Mass Emissions Cap and Trade Program 4: Discrete Emission Credit Banking and Trading 6: Highly-Reactive VOC Emissions Cap and Trade Program 1: September 6, 2006 at 71 FR 52698 3: November 14, 2001 at 66 FR 57252 and September 6, 2006 at 71 FR 52664 4: September 6, 2006 at 71 FR 52703 6: September 6, 2006 at 71 FR 52659

30 TAC 106, Subchapter A: General Requi rements November 14, 2003 at 68 FR 64548 30 TAC 111, Subchapter A, Divisions:
1: Visible Emissions
2: Incineration 4: Materials Handling, Cons truction, Roads, Streets, Alleys, and Parking Lots 5: Emission Limits on Nonagricultural Processes
And Rule 105.2: Ground Level Concentrations 6: Emission Limits on Agricultural Processes 30 TAC 111, Subchapter B: Outdoor Burning SC A 1: January 18, 1994 at 59 FR 2532 and May 8, 1996 at 61 FR 20732 2: April 28, 2009 at 74 FR 19144 4: January 18, 1994 at 59 FR 2532

5: April 28, 2009 at 74 FR 19144 105.2: May 31, 1972 at 27 FR 10842 6: April 28, 2009 at 74 FR 19144 SC B: April 28, 2009 at 74 FR 19144

14 30 TAC113 addresses air pollution from lead smelters in the federally approved SIP and thus is not relevant to this rulemaking action.8 30 TAC 112, Subchapter A: Control of Air Pollution From Sulfur Compounds 15 SC A: August 30, 1993 at 58 FR 45456 and February 18, 1997 at 62 FR 07163 30 TAC 114, Subchapter C: Divisions: 1: Vehicle Inspection and Maintenance (I/M) 3: I/M for Early Action Compact Counties Subchapter K: Mobile Source Incentive Programs
Division 3: Diesel Emission Reduction Incentive Program for On-road and Non-road Vehicles SC C 1: Nov 14, 2001 at 66 FR 57264 and September 6, 2006 at 71 FR 52670 3: August 8, 2005 at 70 FR 45542 SC K 3: August 19, 2005 at 70 FR 48647

30 TAC 115, SC A: Definitions
SC B: General VOC Sources

SC C: VOC Transfer Operations

SC D: Petroleum Refining, Natural Gas Processing,
and Petrochemical Processes

SC E: Solvent-Using Processes

SC F: Miscellaneous Industrial Sources

SC G: Consumer-Related Sources SC H: Highly-Reactive VOCs
SC J: Administrative Provisions A: July 17, 2008 at 73 FR 40972 B: March 29, 2010 at 75 FR 15348, July 10, 2009 at 74 FR 33146, March 7, 1995 at 60 FR 12438, February 27, 2008 at 73 FR 10383, July 17, 2008 at 73 FR 40972, July 16, 2001 at 66 FR 36913, May 22, 1997 at 62 FR 27964 and December 20, 2000 at 65 FR 79745 C: October 20, 2010 at 75 FR 64675, January 19, 2006 at 71 FR 3009, July 16, 2001 at 66 FR 36913, December 20, 2000 at 65 FR 79745, July 17, 2008 at 73 FR 40972, March 29, 2005 at 70 FR 15769 and May 22, 1997 at 62 FR 27964 D: February 27, 2008 at 73 FR 10383, March 7, 1995 at 60 FR 12438 and July 17, 2008 at 73 FR 40972 E: July 10, 2009 at 74 FR 33146, March 29, 2005 at 70 FR 15769, July 17, 2008 at 73 FR 40972, January 19, 2006 at 71 FR 3009, October 30, 2001 at 66 FR 54688, July 16, 2001 at 66 FR 36913, January 26, 1999 at 64 FR 3841 and April 6, 2000 at 65 FR 18003 F: March 29, 2010 at 75 FR 15348, December 22, 1999 at 64 FR 71670, March 29, 2005 at 70 FR 15769, July 17, 2008 at 73 FR 40972, May 22, 1997 at 62 FR 27964 and February 27, 2008 at 73 FR 10383 G: February 10, 2005 at 70 FR 7041 H: September 6, 2006 at 71 FR 52656 J: May 22, 1997 at 62 FR 27964,

15 Subchapters C (Control of Sulfuric Acid) and D (Control of Total Reduced Sulfur) are in the EPA-approved Texas 111(d) Plan, but not in the SIP.9 February 27, 2008 at 73 FR 10383 and September 6, 2006 at 71 FR 52698 30 TAC 117 – Subchapters A-H SC A, F, G: Dec 3, 2008 at 73 FR 73562 SC C, E, H: Dec 3, 2008 at 73 FR 73562, January 14, 2009 at 74 FR 1927 SC B, D: Dec 3, 2008 at 73 FR 73562, January 14, 2009 at 74 FR 1927 and July 31, 2009 at 74 FR 38102 Chapter 118 July 26, 2000 at 65 FR 45915

2. Ambient air quality monitori ng and data analysis system : Section 110(a)(2)(B) requires SIPs to include provisions for establishment and operation of ambient air quality monitors, collecting and analyzing ambient air quality data, and making these data available to EPA upon
request.

The State’s response : The TCEQ maintains a network of air quality monitors to collect air emissions data that is reported to EPA on a regul ar basis. TCEQ referenced the following from 30 TAC as relevant to meet this requirement:

Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 111 Control of Air Pollution from Visible Emissions and Particulate Matter Chapter 112 Control of Air Pollution from Sulfur Compounds Chapter 115 Control of Air Polluti on from Volatile Organic Compounds Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification Chapter 117 Control of Air Po llution from Nitrogen Compounds

EPA analysis : EPA historically has promulgated regula tions in 40 CFR 58 (A mbient Air Quality Surveillance), indicating the necessary data states need to collect and submit as part of their SIP. As the state air pollution contro l agency, the TCEQ maintains a ne twork of air quality monitors per 40 CFR 58.3(a). The air quality surveillanc e network undergoes annu al review and EPA approval of the current network was completed on December 23, 2010. 16 These monitors meet the technical requirements of 40 CFR 58, Subpart B and those that have not been certified as meeting the federal requirements are iden tified as “non-regulatory” monitors. 17 The TCEQ website posts past and curre nt concentrations of PM 2.5 and ozone measured by their network of monitors. The State submits air monitoring data to EPA quarterly and certifies the data annually. EPA also approved the Texas enhanced ambient air quality monitoring network of Photochemical Assessment Monitoring Stations (PAMS) on October 4, 1994 (59 FR 50502). The PAMS network also undergoes annual review an d approval by EPA and a copy of the current approval, dated October 30, 2009, is in the docket for this rulemaking.

16 A copy of our approval letter is in the docket for this rulemaking.

17 These include for example, special purpose monitors. Special purpose monitoring is conducted on a frequent basis for a variety of reasons: as a tool to supplement state ambient air monitoring networks to obtain information on where to locate permanent monitoring stations, to provide additional data in support of pollutant formation and transport analyses, or to assess air quality in a particul ar location. These studies vary in duration from being temporary sites needed only during a portion of the year to long-term air pollution studies over a large area.10 The rules at 30 TAC Chapters 101, 106, 111, 112, and 115 - 117 address air monitoring requirements for owners or operators of propos ed sources pursuant to 40 CFR 58.3(c) and are evaluated in Section II.6 below, regarding stationary source emissions monitoring and reporting, pursuant to the requirements of s ection 110(a)(2)(F) of the Act. We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(B).

3. Program for enforcement of control measures : Section 110(a)(2)(C) requires states to include a program providing for enforcement of th e measures described in subparagraph (A), and the regulation of the modification and constructio n of any stationary source within the areas covered by the SIP as necessary to assure th at the NAAQS are achieved, including a permit program as required in part C.

The State's response : TCEQ has established rules govern ing the enforcement of control measures, including attainment plans and perm itting programs that regulate construction and modification of stationary sources. TCEQ referen ced the following from 30 TAC as relevant to meet this requirement:

Chapter 35 Emergency and Temporary Orde rs and Permits; Temporary Suspension or Amendment of Permit Conditions; Subchapters A, B, C, K Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 112 Control of Air Pollution from Sulfur Compounds Chapter 115 Control of Air Polluti on from Volatile Organic Compounds Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification Chapter 117 Control of Air Po llution from Nitrogen Compounds

EPA analysis : The Texas Water Code (TWC) provides th e TCEQ with enforcement authority per TWC 5.013 (addressing jurisdiction of the TCEQ) and 7.002 (enforcement authority). See also THSC 382.002(b) and 382.085, which di rect the TCEQ to “vigorously ” enforce the rules of the TCAA expeditiously initiate enforc ement actions on any violations. The State submitted 30 TAC 35 to EPA for ap proval into the Texas SIP and EPA will
evaluate and take action on 30 TA C 35 in a separate rulemaking. Enforcement of emissions inventory requirements is provided under 30 TAC 101.10(f). Components related to enforcement addr essed in 30 TAC 106, 112, 115 and 117 include allowable rates, compliance, control plan requirements, act ual and allowable emissions, monitoring and testing requirements, and contro l schedules (see Table 2 below; a few of the monitoring and testing requirements are listed in Table 4). These rules clarify the boundaries beyond which regulated entities in Te xas can expect enforcement action. New major stationary sources and major 18 modifications at existing major stationary sources have several requirements under the Act, one of which is to obtain an air pollution permit before construction begins. This pre-construction 19 permitting process for major

18 A major source is one with the potential to emit at least 100 tons per year (tpy) or 250 tpy, depending upon the source, per section 169(1) of the Act.

19 After construction, the source must obtain an operating permit, also called a Title V permit, as this requirement comes from Title V of the Act. Most Title V permits are issued by State and local permitting authorities. These11 stationary sources is called ne w source review (NSR) and is required whether the major source or major modification is planned for an ar ea where the NAAQS are exceeded (nonattainment areas) or an area where the NAAQS have not be en exceeded (attainment and unclassifiable areas). In general, permits for sources in attain ment areas and for other pollutants regulated under the major source program are referred to as PSD permits, while permits for major sources emitting nonattainment pollutants and located in nonattainment areas are referred to as nonattainment NSR (NNSR) permits. The entire preconstruction permitting program, including both the PSD and NNSR permitting programs, is referred to as the NSR program. The statutory and regulatory programs that re gulate NSR are provided under part C of the Act, and 40 CFR 51.160 through 51.166. Part C of the Act requires prevention of significant deterioration (PSD) of air quality and is codified at 40 CFR 51.166. The Texas NSR and PSD SIPs were initially approved into the SIP on June 24, 1992 (57 FR 28093). Subsequent revisions to the PSD program were approved into the SIP on September 9, 1994 (59 FR 46556); August 19, 1997 (62 FR 44083), September 18, 2002 (67 FR 58697), July 22, 2004 (69 FR 43752), March 20, 2009 (74 FR 11851) and September 15, 2010 (75 FR 55978). Minor NSR is for pollutants from stationa ry sources that do not require PSD or nonattainment NSR (NNSR) permits. The purpose of minor NSR permits is to prevent the
construction of sources that would interfere wi th attainment or maintenance of a NAAQS or violate the control strategy in nonattainment ar eas. Also, minor NSR permits often contain permit conditions to limit the sources emissions to avoid PSD or NNSR. Section 110(a)(2)(C) of the Act creates “a general duty on States to incl ude a program in their SIP that regulates the
modification and construction of any stationary source as necessa ry to assure that the NAAQS are achieved” (70 FR 71612, 71677). EPA provides states with a “broad degree of discretion” in implementing their minor NSR programs ( 71 FR 48696, 48700). The “considerably less detailed” regulations for mi nor NSR are provided in 40 CFR 51.160 through 51.164. EPA has determined that Texas’s minor NSR program adopt ed pursuant to section 110(a)(2)(C) of the Act regulates emissions of ozone and its precursor s and PM. In its initia l SIP approved by EPA on May 31, 1972 (37 FR 10842, 10895), Texas provide d for review of new sources and modification of existing sources and for preven ting construction or m odification if it would result in violations of applicab le portions of a control strategy or interfere with attainment or maintenance of the NAAQS, without distinguis hing between minor and major sources. With EPA’s conditional approval of the Texas nonatt ainment NSR (NNSR) requirements for major sources and major modifications in nonatta inment areas, March 25, 1980 (45 FR 19231), the
Texas SIP continued to address minor source s and minor modifications. There have been numerous revisions approved for the Texas Minor NSR SIP since 1980. Among many others, they include August 13, 1982 (47 FR 35193); September 18, 2002 (67 FR 58697); November 14, 2003 (68 FR 64543); August 28, 2007 (72 FR 49198), March 8, 2010 (75 FR 10416), and April 2, 2010 (75 FR 16671). The SIP continues to requir e preconstruction permits for minor sources
and minor modifications. Texas submitted revisions to their permitti ng rules at 30 TAC 116 however, that do not meet CAA requirements. In a separate actions, EPA finalized disapproval of three revisions to the SIP that relate to the NSR and PSD SIPs, c oncerning: the Texas Qualified Facilities State Program, 20 because it does not meet the Minor NSR SIP requirements nor does it meet the NSR

permits are often called part 70 permits because the regu lations that establish minimum standards for State permit programs are found in Title 40 of the Code of Federal Regulations (CFR) at part 70 (denoted 40 CFR 70).

20 See 75 FR 19467, published April 14, 2010.12 SIP requirements for a substitute Major NSR SI P revision; the Standard Permit for Pollution Control Projects, 21 because it does not meet the requirements for a minor NSR SIP revision; and the Texas Flexible Permits State Program, 22 because it does not meet the Minor NSR SIP requirements nor does it meet the NSR SIP requirements for a substitute Major NSR SIP revision. While these specific types of permit pr ograms have been disapproved by EPA, TCEQ continues to have the authority to issue permits under prior EPA approval of its 1992 NSR

program. Consistent with EPA's November 29, 2005, Phase 2 rule for the 1997 8-hour ozone NAAQS (70 FR 71612), Texas submitted a SIP revision on March 11, 2011, to modify its PSD program to address NOx as an ozone precurs or. The 2011 SIP revision included revisions to regulate NOx emissions in the Texas PSD permit pr ogram as a precursor to ozone. The revisions:

• include NOx as an ozone precursor in the definition of Regulated NSR pollutant; • add that a major source that is major for NOx shall be considered major for ozone in the

definition of Major stationary source; and
• include a NOx emissions rate of 40 tons per year in the defi nition of Significant. These revisions are evaluated in Appendix A to this TSD and EPA is proposing approval of these
revisions. EPA’s PSD regulations require an ambient impact analysis for ozone for proposed major stationary sources and major modifications to obtain a PSD permit (40 CFR 51.166(k), (l) and (m) and 40 CFR 52.21(k), (l) and (m)). The Texas rules at 30 TAC 116.160 - .163 meet these requirements for PSD and were approved into the SIP on June 24, 1992 (57 FR 28093), as revised September 9, 1994 (59 FR 46556), September 27, 1995 (60 FR 49781), August 19, 1997 (62 FR 44083), July 22, 2004 (69 FR 43752); Marc h 20, 2009 (74 FR 11851); and September 15, 2010 (75 FR 55978). The Texas PSD SIP meets these requirements by incorporating by reference 40 CFR 52.21 (k) and (m) and includin g the following rule at 116.160(d) that EPA found meets 40 CFR 51.166(l): “All estimates of am bient concentrations required under this subsection shall be based on the applicable air qu ality models and modeling procedures specified in the EPA Guideline on Air Quality Models, as amended, or models and modeling procedures currently approved by the EPA for use in the state program, and ot her specific provisions made in the prevention of significant deterioration state implementation plan. If the air quality impact model approved by the EPA or specified in the guideline is inappropria te, the model may be modified or another model substituted on a case-by-case basis, or a generic basis for the state program, where appropriate. Such a change shall be subject to notice a nd opportunity for public hearing and written approval of th e administrator of the EPA.” The Texas rule does not name 40 CFR Part 51, Appendix W, as 40 CFR 51.166(l) does, but Appendix W codifies the Guideline on Air Quality Models, which is named in the Texa s rule, and Section 1.0.a of Appendix W states, in part: “The Guideline recomm ends air quality mode ling techniques that s hould be applied to [SIP] revisions for existing sources and to [NSR], in cluding [PSD]. Applicable only to criteria air pollutants, it is intended for use by EPA Regiona l Offices in judging the adequacy of modeling analyses performed by EPA, state and local agen cies and by industry. [...] The Guideline is not intended to be a compendium of modeling tech niques. Rather, it should serve as a common measure of acceptable technical analysis when supported by sound scientific judgment.” Appendix W Section 5.2.1 includes the Guidelin e recommendations for models to be utilized in assessing ambient air quality impacts for ozone. Specifically, Section 5.2.1.c:

21 See 75 FR 56424.

22 See 75 FR 41311, published July 10, 2010.13 “Estimating the Impact of Individual Sources. Choi ce of methods used to assess the impact of an individual source depends on the nature of th e source and its emissions. Thus, model users should consult with the Regional Office to determ ine the most suitable approach on a case-bycase basis (subsection 3.2.2).” Due to the comple xity of modeling ozone and the dependency on the regional characteristics of atmospheric conditions, EPA belie ves this is an appropriate approach rather than specifyi ng one particular preferred mode l nationwide, which may not be appropriate in all circumstances. Instead, the ch oice of method “depends on the nature of the source and its emissions.” (Appendix W Section 5.2.1.c .) Therefore, EPA continues to believe it is appropriate for permitting authorities to consult and work with EPA Regional Offices as described in Appendix W, including secti ons 3.0.b and c, 3.2.2 and 3.3, to determine the appropriate approach to assess ozone impact s for each PSD required evaluation. Although EPA has not selected one particular preferred mode l in Appendix A of Appe ndix W (Summaries of Preferred Air Quality Models) fo r conducting ozone impact analyses for individual sources, state and local permitting authorities must comply with the appropriate PSD FIP or SIP requirements with respect to ozone. In recent EPA actions, some have raised concerns that the lack of a preferred model for ozone has resulted in the belief that no modeling is required or use of inappropriate models is allowed. This undersco res the need for consultation with the EPA Regional office. States should not be using inappropriate analytical tools in this context. The use of “Scheffe Tables” and other pa rticular screening t echniques, which involv e ratios of NOx to VOC that do not consider the impact of bioge nic emissions, or that use other outdated or irrelevant modeling, is inappropria te to evaluate a single source’s ozone impacts on an air quality control region. More scientifica lly appropriate screen ing and refined tools are available and should be considered for use. Therefore, stat es should consult and work with EPA Regional Offices as described in Appendi x W on a case-by-case basis to determine the appropriate method for estimating the impacts of these oz one precursors from individual sources. For ozone, a proposed emission source’s imp acts are dependent upon local meteorology and pollution levels in the surrounding atmosphere. Ozone is formed from chemical reactions in the atmosphere. The impact of a new or modified source can have on ozone levels is dependent, in part, upon the existing atmospheric pollutant loading already in the region with which
emissions from the new or modified source ca n react. In addition, meteorological parameters such as wind speed, temperature, wind direction, solar radiation influx, an d atmospheric stability are also important factors. The more sophi sticated analyses consider meteorology and interactions with emissions from surrounding so urces. EPA has not identified an established modeling system that would fit al l situations and take into acc ount all of the additional local information about sources and meteorological conditions.
The Texas SIP meets the federal PSD SIP m odeling requirements for sources that are major for ozone because the state rules approve d by EPA into the SIP include the federal requirements. The assessment of ozone impacts should be done in consultation with the EPA Regional Office. The Texas SIP must also provide that any net emissions increase of 100 tpy or more of VOCs or NOx subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data, per 40 CFR 52.21 k, l, m, and (i)(5)(i)( f

). The Texas rules at 30 TAC 116.160(c)(2)(A) incorporate by reference the requirements for PSD at 40 CFR 52.21(c)-(k), were approved into the SIP at 75 FR 55978 and thus meet this federal requirement. As noted in Section I.D above, Texas does not have adequate legal authority to address the new GHG PSD permitting requirements at statut ory levels of emissions and thus, the Texas14 SIP does not satisfy this portion of section 110(a)(2)(C). We ar e proposing to disapprove the
Texas infrastructure SIP for the 1997 ozone and the 1997 and 2006 PM 2.5 NAAQS with respect to the GHG requirement of section 110(a)(2)(C). EPA’s disapproval of this infrastructure element here does not engender an additional statutory obligation, because EPA promulgated a FIP for the Texas PSD program related to perm itting GHGs at or above the Tailoring Rule thresholds (76 FR 25178). This FIP will remain in place until Texas submits and EPA approves revisions that address the disapproved elements. We are proposing to approve the Texas in frastructure SIP for the 1997 ozone and the
1997 and 2006 PM 2.5 NAAQS with respect to section 110(a)(2)(C), except as it relates to GHGs.

Table 2: Texas rules relevant to meeting se ction 110(a)(2)(C), as submitted by TCEQ:

Section of SIP Referenced in Texas’ Submittal EPA Approval/FR Citation 30 TAC 101.10(f) August 26, 1994 at 59 FR 44036 30 TAC 106, Subchapter A: General Requi rements November 14, 2003 at 68 FR 64548 Chapter 112 February 18, 1997 at 62 FR 07163 and August 30, 1993 at 58 FR 45456 Chapter 115 23 (also see Table 4) Chapter 116 (citations in discussion above Table 2)

30 TAC 117.2035 30 TAC 117, Subchapter G - General Monitoring and Testing Requirements July 31, 2009 at 74 FR 38102 December 3, 2008 at 73 FR 73562

4. Interstate transport, and interstate and international pollution abatement : Section 110(a)(2)(D) is divided into two components, 110(a)(2)(D)(i) and 110( a)(2)(D)(ii). Section 110(a)(2)(D)(i) addresses in terstate transport and requires SIPs to include provisions prohibiting any source or other type of emi ssions activity in one state from contributing significantly to nonattainment, interfering with ma intenance of the NAAQS in another state, or from interfering with measures required to prevent significant deterior ation of air quality or to protect visibility in another state. Section 110(a)(2)(D )(ii) addresses interstate and international pollution abatement, and requires SIPs to include provisions insuri ng compliance with sections 115 and 126 of the Act, relating to interstate and international pollution abatement.

The State's response : Texas is included in the CAIR for PM 2.5 , but not for ozone, and submitted to EPA a SIP revision to implement CAIR. The TCEQ is in the process of revising the CAIR SIP
to account for federal rule revisions and state le gislative changes. Additionally, since Texas was not included in the CAIR for ozone, the TCEQ is pr eparing a SIP revision relating to transport in compliance with EPA’s Finding of Failure to Submit. 24 TCEQ referenced the following from 30 TAC as relevant to meet this requirement:

Chapter 101 General Air Quality Rules Chapter 122 Subchapter E, Divisi on 2, Clean Air Interstate Rule Chapter 122 Subchapter E, Divi sion 3, Clean Air Mercury Rule

23 Individual sections are too numerous to list here, but include emissions specifications, control and alternate control requirements, inspection and monitoring schedule s, compliance schedules and more. For the full list, including EPA approval dates and citations, see Table 4 below.

24 See 70 FR 21147, April 25, 2005.15 EPA analysis : Interstate transport, 110(a)(2)(D)(i): As noted above, the inters tate transport portion of section 110(a)(2)(D)(i) prohibits a ny source or other type of emi ssions activity within the State from emitting any air pollutant in amounts wh ich will (I) contribute significantly to nonattainment in, or interfere with maintenance by, a ny other State with respec t to any such national primary or secondary ambient air quality standard, or (II) interfere with m easures required to be included in the applicable implementation plan for any other State under part C of this subchapter to prevent significant deterioration of air quality or to protect visibility. On May 1, 2008, we received a SIP revision from Texas intended to address the requirements of section 110(a)(2)(D)(i) for both the 1997 8-hour ozone and 1997 PM 2.5 standards. In its submission, Texa s stated that its NSR program fo r major sources satisfies this requirement. As noted in Sec tion II.3 above, Texas has an approved NSR program (57 FR 28093, 62 FR 44083, 67 FR 58697, 69 FR 43752 74 FR 11851 and 75 FR 55978). With the May 1, 2008 submission, the state would meet the el ement under section 110(a)(2)(D)(i)(II) that prohibit sources from emitting pollutants that will interfere with measures required to prevent significant deterioration of air qua lity in other states, except as they relate to GHGs. We are proposing to disapprove the portion of the Texas In terstate Transport SIP provisions that address the requirement of section 110(a)(2 )(D)(i)(II), as it re lates to GHGs, that emissions from sources in Texas do not interfere with measures required in the SIP of any other state under part C of the CAA to prevent significant de terioration of air quality.
The Texas SIP to address the Clean Air Inters tate Rule (CAIR, approved into the Texas SIP at 72 FR 41453) and the revised Texas CA IR SIP (submitted March 4, 2010) will be evaluated in light of the EPA’ s Cross-State Air Pollution Rule (CSAPR), which found that Texas (and 26 other states in the easte rn half of the United States) must significantly improve air quality by reducing power plant emissions that cr oss state lines and cont ribute to ground-level ozone and fine particle pollution in other states. 25 The EPA addresses s ection 110(a)(2)(D)(i)(I)
for Texas under the CSAPR. We will address the protection of visibility requirement of 110(a)(2)(D)(i)(II) when EPA completes its review of the Texas regiona l haze SIP revision submitted on March 19, 2009. We are proposing to approve the portion of the Texas Interstate Transport SIP provisions that address one requirement of section 110(a)(2)(D)(i)(II), that em issions from sources in Texas do not interfere with measures required in the SI P of any other state under part C of the CAA to prevent significant deterior ation of air quality, excep t as it relates to GHGs. We are proposing to disapprove the porti on of the Texas Interstate Transport SIP provisions that address one requi rement of section 110(a)(2)(D)( i)(II), that emissions from
sources in Texas do not interfere with measures required in the SI P of any other state under part C of the CAA to prevent significant deterior ation of air quality, as it relates to GHGs.

Interstate and international pol lution abatement, 110(a)(2)(D)(ii): Section 115 of the Act addresses international air polluti on: (a) Endangerment of public health or welfare in foreign countries from pollution emitted in the United States; (b) Prevention or elimination of

25 76 FR 4820816 endangerment; and (c) Reciprocity. 26 We have not been made aware of any submissions indicating reports, surveys, or st udies from a duly constituted inte rnational agency pursuant to CAA section 115 with respect to emissions in Mexico originati ng from Texas, thus we are proposing that the Texas SIP meets this portion of secti on 110(a)(2)(D)(ii).
Section 126 of the Act addresses intersta te pollution abatemen t and section 126(a) requires that each applicable implementation pl an shall require each major proposed new or modified source to notify neighborin g states of potential impacts from the source. The Texas SIP
addresses section 126 of the Act under their PSD rules at 30 TAC 116, Division 3 (Public Notice). Specifically, 30 TAC 116.13 1 provides that public notice be provided “[...] for any permit subject to the FCAA, Title I, Part C or D, or to Title 40 Code of Federal Regulations (CFR), Part 51.165(b).” Furthermore, the rules at 30 TAC 116.134 provide that “[...] the permit applicant shall furnish a copy of such notices a nd date of publication to [...] the air pollution control agency of any nearby st ate in which air quality may be adversely affected by the emissions from the new or modified facility.” These rules were adopted into the Texas SIP on September 18, 2002 (67 FR 58709) and address s ection 126(a)(1)(A) a nd (B) of the Act. Section 126(b) of the Act provides that any st ate or political subdivision may petition the Administrator for a finding that any major source or group of stationary sources emits or would emit any air pollutant in violation of the prohibition of section 110(a)(2)(D)(ii) of this title or this section. Within 60 days after re ceipt of any petition under this subsection and after public hearing, the Administrator shall make such a fi nding or deny the petition. We have not been made aware of any such pending actions pursuan t to CAA section 126(b), thus we are proposing that the Texas SIP meets this por tion of section 110(a)(2)(D)(ii). We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(D)(ii).

5. Adequate resources and authority : Section 110(a)(2)(E) require s states to provide for adequate personnel, funding, and legal authority unde r state law to carry out its SIP and related
issues.

The State’s response : The TCEQ has consistent ly included assurances in SIP revisions that the State has adequate personnel, funding, and authority under state law to carry out the SIP. The TCEQ has various Memoranda of Understanding with other state and local agencies. Local governments have their own responsib ilities and privileges regardi ng the protection of air quality as established by the Texas legislature. TCEQ re ferenced the following from 30 TAC as relevant to meet this requirement:

Chapter 7 Memoranda of Understanding Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification

EPA analysis : Each SIP must show that the state has legal authority to ca rry out the plan (40 CFR 51.230). Texas SIP revisions include a discussi on on legal authority, with reference to the

26 Section 115(c) provides that this section shall apply only to a foreign country which the Administrator determines has given the United States essentially the same rights with respect to the prevention or control of air pollution occurring in that country as is given that country by this section.17 TCAA. The TCAA was adopted in to the Texas SIP in 1981 (46 FR 61124). The TCAA names the Texas Air Control Board (TACB) as the state air control agency, with principal authority in the state on matters relating to the quality of air resources. In 1991, the Texas Legislature abolished the TACB and its powers, duties, responsi bilities and functions we re transferred to the
Texas Natural Resource Conser vation Commission (TNRCC). In 2001, the Texas Legislature changed the name of the TNRCC to the Texa s Commission on Environmental Quality (TCEQ or Commission). The TCAA is now codified under the Texas Health and Safety Code (THSC), Chapter 382. The current version of the TCAA, wh ich pertains to the TCEQ and is codified under the THSC, retains the authorities approve d into the SIP in 1981. The TCAA charges the Commission with preparing and developing th e SIP (see THSC section 382.012), and provides the agency with “[...] powers n ecessary or convenient to carry out its responsibilities.” (ibid.) To address funding, the TCAA at section 382.06 22 provides that “[t]he commission shall request the appropriation of suffic ient money to safeguard the air resources of the state.” In addition, the first chapter of a Texas SIP revision 27 typically addresses fiscal and staff resources, usually at the end of the chapter, with the followi ng statement, “The state has determined that its fiscal and manpower resources are adequate a nd will not be adversely affected through the implementation of this plan.” The State has provided these assurances in SIP submittals approved by EPA. 28
The TCEQ has the authority to collect fees for applications, permits, and inspections pursuant to THSC section 382.062 and thus receives fees for such, as well as for penalties and
interest on fees owed. These fees are discusse d in detail below, in section II.11, regarding permitting fees (Section 110(a)(2)(L)). The state also has authority to collect fees for vehicle inspection and maintenance (I/M) pr ograms in several nonattainment areas and in the Austin area
under THSC sections 382.202 and 382.302. These rule s are approved in the TX SIP and are found at 30 TAC 114.53 (71 FR 52670) and 114.87 (70 FR 45542). The TCEQ also receives federal funds, author ized pursuant to secti ons 103 and 105 of the Act. The section 103 funds support specific, non-recu rring projects within the air program, thus the amount of funding can vary widely from ye ar to year. The section 105 funds support the foundation of the State’s air quality program, including the air monitoring network and annual (recurring) air quality program activities. The sec tion 105 funding levels are relatively consistent, varying not more than about 10% from year to year. The 105 funds require a 40% match from the State, while the 103 funds do not require a match. Where the state relies on local or regional gove rnment, agency, or instrumentality for the implementation of any plan provision, the state has responsibility for ensuring adequate implementation of the SIP, codified at 40 CFR 51.232. The TWC declares that the TCEQ is the agency of the state given primary responsibility for implementing the constitution and laws of this state relating to the conser vation of natural resources and th e protection of the environment at 5.012; rules governing the authority of lo cal governments are provided under THSC 382.111- 115.The TCEQ does not relinquish its responsibilities to local governments. The TCEQ made a

27 The first chapter of a Texas SIP revision typically addresses general information, including, but not limited to: background; public involvement and hearing information; social and economic considerations; and fiscal and

manpower resources.
28 The DFW Reasonable Further Progress (RFP) SIP to address the 1997 ozone moderate nonattainment area was approved on October 7, 2008 (73 FR 58475). See also the approved attainment demonstrations for the three Early Action Compact (EAC) areas: on August 19, 2005, the Austin EAC SIP (70 FR 48640) and the Northeast Texas EAC SIP (70 FR 48642) were approved; on August 22, 2005, the San Antonio EAC SIP was approved (70 FR 48877).18 reference to 30 TAC 7 (Memoranda of Understanding) in its submittal, which serves to identify and clarify the roles of agencies with overlapping responsibilities. Th e MOU is discussed in detail in section II.1 above (regarding enforceable emission limits and other control measures, pursuant to section 110(a)(2)(A) of the Act), and also in section II.12 be low (regarding consultation/participation by affected local entiti es, pursuant to section 11 0(a)(2)(M) of the Act). The TCEQ commissioners take final action on Texas state rules and their eligibility to serve as commissioner is subject to section 128 of the Act. S ection 128 requires that, (1) any board or body which approves permits or enforcemen t orders shall have at least a majority of members who represent the public interest and do not derive any signifi cant portion of their income from persons subject to permits or enfo rcement orders under this chapter, and (2) any potential conflicts of interest by members of such board or body or th e head of an executive agency with similar powers be adequately disc losed. The three commissioners of the TCEQ are appointed by the governor to represent the gene ral public and their suit ability and conduct are prescribed by the Texas Water Code (TWC). The state rules that address section 128 of the Act are found in the TWC, Title 2 (Water Administra tion), Subtitle A (Executive Agencies), Chapter 5 (Texas Natural Resource Conservation Commissi on), Subchapter C (Texas Natural Resource Conservation Commission), §5.053: Eligibility for Memb ership; §5.054: Removal of Commission Members; §5.059: Conflict of In terest; §5.060: Lobbyist Prohibition; and Subchapter D (General Powers and Duties of the Commission), §5.111: Standards of Conduct. In 1981, the EPA approved into the SIP the Standards of Conduct of State Officers and Employees (Texas Revised Civil Statute Annotated, Ar ticle 6252-9b) (46 FR 61124). The current TWC
rules retain the standards of conduct for st ate officers and employees approved in 1981. We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(E).

6. Stationary source emissions monitoring and reporting : Section 110(a)(2)(F) requires, as may be prescribed by the Administrator, (i) th e installation, maintenance and replacement of equipment, and the implementation of other necessary steps, by owners or ope rators of stationary
sources to monitor emissions from such source s, (ii) periodic reports on the nature and amounts
of emissions and emissions-related data from such sources, and (iii) correlation of such reports by the State agency with any emission limitations or standards established pursuant to this Act, which reports shall be available at reasonable times for public inspection.

The State's response : The TCEQ requires monitoring for air pollutants as part of its new source review permit program. Cert ain emission sources are requi red to submit annual emission inventories, and periodic reporti ng of emissions, which provides data that is used in air quality modeling to help Texas prepare at tainment demonstration plans. Emission data is available at reasonable times for public inspection, with some information also available on the agency web site. TCEQ referenced the following from 30 TA C as relevant to meet this requirement:

Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 111 Control of Air Pollution from Visible Emissions and Particulate Matter Chapter 112 Control of Air Pollution from Sulfur Compounds Chapter 115 Control of Air Polluti on from Volatile Organic Compounds Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification Chapter 117 Control of Air Po llution from Nitrogen Compounds19 EPA analysis : The Texas Clean Air Act (TCAA) provide s the TCEQ with authority to require monitoring and recordkeeping at section 382.016. The authority to require the submittal of emissions data to develop an emissions inventory is provi ded at section 382.014. 30 TAC Chapters 101, 106, 111, 112, and 115 - 117 address air monitoring requirements for owners or operators of proposed sources, pursuant to 40 CFR 58.3(c). These chapters are in the SIP and include sampling, sampling pro cedures, emission monitoring and compliance demonstration, reporting, recordkeeping, and provi des for enforcement. These source monitoring program requirements generate data for ozone and PM 2.5 and their precursors. The TCEQ collects and analyzes emissions da ta from point, area, mobile, and biogenic (natural) sources. The TCEQ uses this data to track progress towards attaining the NAAQS, develop control and maintenance strategies, id entify sources and general emission levels, and determine compliance with state and federal requirements. Texas emissions data are available onthe TCEQ website (www.tceq.texas.gov/agency/air_main.html). A list of the State’s SIPapproved rules is provided in Table 4 below. The National Emissions Inventory (NEI) is EPA’s central repository for air emissions data. EPA published the Air Emissions Repor ting Rule (AERR) on December 5, 2008, which modified the requirements for collecting and reporting air emissions data (73 FR 76539). The AERR shortened the time states had to report emi ssions data from 17 to 12 months, giving states one calendar year to submit emissions data. All states are required to submit a comprehensive emissions inventory (EI) every three years and report emissions for certain larger sources annually through EPA’s online Emissions Inventory System. States report emissions data for the six criteria pollutants and the prec ursors that form them – NOx, SO 2 , ammonia, lead, carbon monoxide, PM, and VOCs. Many states also volunt arily report emissions of hazardous air pollutants. EPA compiles the emissions data, suppl ementing it where necessary, and releases it to the general public through the websit e www.epa.gov/ttn/chief/eiinformation.html. In addition to the chapters provided in the state’s submittal to meet section 110(a)(2)(F), we note that 30 TAC 19 includes additional reporting of emissions data and provides for
electronic submittal of emissions data. Per 30 TA C 19, Texas collects additional data related to emissions from stationary sources and requires so urces in regions that are in violation of a NAAQS to report typical daily emissions of oz one precursor gases during the summer months. The state may electronically report documents re quired under federally aut horized programs and designated state programs, including emissi ons inventories from stationary sources. 29
There are two additional requirements that Texas must meet regarding emissions inventories: the EI requi rement for nonattainment areas, and the requirement to submit annual EI
data to EPA’s NEI database. For the Beaumont -Port Arthur (BPA), Dallas-Fort Worth (DFW) and Houston ozone nonattainment areas, the TCEQ submitted EI SIPs with a 2002 base year
which included NOx and VOC data. Table 3 belo w lists each SIP and the citations for EPA approval. The TCEQ is current with their s ubmittals to the NEI database; the 2008 data was
submitted to EPA in 2010. The State’s emissions data are also available on EPA’s AirData

29 On October 13, 2005 EPA published the final Cross Media Electronic Reporting Rule (CROMERR, see 70 FR 59848). CROMERR establishes el ectronic reporting as an acceptable regulato ry alternative to paper reporting and establishes requirements to assure that electronic documents are as legally de pendable as their paper counterparts. Subpart D of the CROMERR requires states , tribal or local government agencies that receive or wish to receive electronic reports under their EPA-author ized programs to apply to EPA for a revision to those programs and get EPA’s approval. On February 26, 2007 Texas submitted to EPA revisions to the emissions inventory reporting regulations. The revisions allow for electronic reporting of emissions consistent with CROMERR.20 website, which provides access to air pollution data for the entire United States and can produce reports and maps of air pollution data based on criteria specified by the user (www.epa.gov/air/data/index.html).

Table 3: EPA Approved Emission Inventories

Area EPA Approval/FR Citation

BPA October 20, 2010 at 75 FR 64675

DFW August 15, 2008 at 73 FR 47835 DFW (revised EI) October 7, 2008 at 73 FR 58475

Houston April 22, 2009 at 74 FR 18298

Procedures for obtaining and maintaining data on actual emissions re ductions achieved as a result of implementing TCMs were approve d by EPA and adopted into the Texas SIP on December 5, 2002 (67 FR 72379). Pursuant to the 2002 rulemaking, 30 TAC 114.270(c) requires that all TCMs be developed, coordinated, funded, approved, implemented, tracked, evaluated,
and monitored in accordance with 30 TAC 114.2 60 (relating to Transportation Conformity). Requirements for stationary sources subject to emission standards as part of an applicable plan to install, calibrate, ma intain, and operate equipment fo r continuously monitoring and recording emissions are provided in the Texas SIP. References ar e provided in Table 4 below. We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(F).

Table 4: Texas rules relevant to meeting se ction 110(a)(2)(F), as submitted by TCEQ:

Section of SIP Referenced in Texas’ Submittal EPA Approval/FR Citation 30 TAC 19: Electronic Reporting July 23, 2010 at 75 FR 43062

30 TAC 101.10: Emission I nventory Requirements 30 TAC 101.8: Sampling 30 TAC 101.14: Sampling Procedures & Terminology July 23, 2010 at 75 FR 43062 January 27, 1982 at 47 FR 3767 June 22, 1973 at 38 FR 16568 30 TAC 106.6: Registration of Emissions 30 TAC 106.8: Recordkeeping November 14, 2003 at 68 FR 64548

111.111: Requirements for Specified S ources May 8, 1996 at 61 FR 20732 and January 18, 1994 at 59 FR 2532

112.1: Definitions

112.2: Compliance, Reporting, and Recordkeeping August 30, 1993 at 58 FR 45456

Subchapter B: General VOC Sources 115.116: Monitoring & Recordkeeping Requirements 115.126: Monitoring & Recordkeeping Requirements 115.136: Monitoring & Recordkeeping Requirements 115.144: Inspection & Monitoring Requirements 115.146: Recordkeeping Requirements 115.156: Monitoring & Recordkeeping Requirements 115.166: Monitoring & Recordkeeping Requirements Subchapter C: VOC Tr ansfer Operations 115.216: Monitoring & Recordkeeping Requirements Subchapter D: Petroleu m Refining, Natural Gas Processing, and Petrochemical Processes 115.316: Monitoring & Recordkeeping Requirements March 29, 2010 at 75 FR 15348 February 27, 2008 at 73 FR 10383 February 27, 2008 at 73 FR 10383 February 27, 2008 at 73 FR 10383 December 20, 2000 at 65 FR 79745 May 22, 1997 at 62 FR 27964 February 27, 2008 at 73 FR 10383

January 19, 2006 at 71 FR 3009

SC D, as listed in left column: February 27, 2008 at 73 FR 1038321 115.354: Monitoring & Inspection Requirements 115.356: Recordkeeping Requirements Subchapter E: Solv ent-Using Processes 115.426: Monitoring & Recordkeeping Requirements 115.436: Monitoring & Recordkeeping Requirements 115.446: Monitoring & Recordkeeping Requirements Subchapter F: Miscella neous Industrial Sources 115.536: Monitoring & Recordkeeping Requirements 115.546: Monitoring & Recordkeeping Requirements Subchapter H: Highly-Reactive VOCs 115.725: Monitoring & Testing Requirements 115.726: Recordkeeping & Re porting Requirements 115.764: Monitoring & Testing Requirements 115.766: Recordkeeping & Re porting Requirements 115.781: General Monitoring/Inspection Requirements 115.786: Recordkeeping Requirements SC E, as listed in left column: January 19, 2006 at 71 FR 3009

SC F: May 22, 1997 at 62 FR 27964 March 29, 2010 at 75 FR 15348 SC H, as listed in left column: September 6, 2006 at 71 FR 52656

7. Emergency power : Section 110(a)(2)(G) requires states to provide for authority to address activities causing imminent and substantial endangerment to public health, including contingency plans to implement the emerge ncy episode provisions in their SIPs.

The State’s response : The TCEQ may issue emergency orders, or issue or suspend air permits as required by an air pollution emergency. In a ddition, the TCEQ main tains air pollution information in a form readily available to the public on the commission’s internet web site at http://www.tceq.state.tx.us/compliance/monitoring/air/monops/forecast_today.html . Local weather forecasts regularly warn the public about poor air quality days, including ozone alerts in all major metropolitan areas. TCEQ referenced th e following from 30 TAC as relevant to meet this requirement:

Chapter 35 Emergency and Temporary Orde rs and Permits; Temporary Suspension or
Amendment of Permit Conditions ; Subchapters A, B, C, K Chapter 118 Control of Air Pollution Episodes

EPA analysis : The TCEQ has authority to formulat e contingency plans for environmental emergencies, pursuant to TWC Chapter 5, Subc hapter L, which provides for emergency and temporary orders, and TWC Chapter 7, which pr ovides enforcement authority. Texas addresses Emergency and Temporary Orders at 30 TAC 35 30 and Control of Air Pollution Episodes at 30 TAC 118. Provisions regarding control of air po llution episodes and the Texas emergency episode contingency plan were first approve d into the SIP on October 7, 1982 (47 FR 44260). Subsequent revisions to this plan were a pproved on September 6, 1990 (55 FR 36632) and July 26, 2000 (65 FR 45915). The rules at 30 TAC 118 in clude contingency plan s and were approved
into the Texas SIP at 65 FR 45915. EPA compared the State rules to 40 CFR 51 Subpart H – Prevention of Air Pollution Emergency Episodes and Appendix L to Part 51 - Example Regulations for Prevention of Air

30 Revisions to 30 TAC 35, addressing Emergency and Temporary Orders and Permits, have not been approved into the Texas SIP. EPA will take action on revisions to 30TAC 35 in a separate rulemaking.22 Pollution Emergency Episodes. Subpart H provides a classification system for episode plans. Each region in a state is classifi ed separately with respect to each of the following pollutants: Sulfur dioxide, particulate matter, carbon monoxide, nitrogen dioxide , and ozone (40 CFR 51.150). An area classified as a Priority I region for ozone has ambient concentrations greater than 195 micrograms per cubic meter (denoted μg/m 3 ) or 0.10 ppm for a 1-hour maximum. The regulations do not establish Priority II regions for ozone. For partic ulate matter a Priority I region has ambient concentrations greater than 95 μg/m 3 annual geometric mean or 325 μg/m 3 for a 24- hour maximum. A Priority II region is any area which is not a Pr iority I region and has ambient concentrations between 60–95 μg/m 3 annual geometric mean or 150–325 μg/m 3 for a 24-hour maximum. A Priority IA Region is any area which is Priority I primarily because of emissions from a single point source. Areas that do not meet th e criteria for Priority I or II are classified Priority III. Table 5 below summarizes the classifications for ozone and PM.

Table 5: Classification of Regions for Ep isode Plans for Ozone and Particulate Matter (40 CFR 51.150) Parameter Priority I Priority II Priority III

Ozone Ambient concentrations > 195 μg/m 3 (0.10 ppm)
1-hour maximum Not defined Areas which do not
meet the criteria for Priority I

Particulate

matter Ambient concentrations > 95 μg/m 3 annual geometric mean; 325 μg/m 3 24-hour
maximum Ambient concentrations between 60-95 μg/m 3
annual geometric mean; 150-325 μg/m 3

24-hour maximum. Areas which do not
meet the criteria for Priority I or II

The significant harm level (SHL) for the 8- hour ozone NAAQS will remain unchanged as 0.6 parts per million ozone, 2-hour average, as indicated in 40 CFR 51.151. EPA believes that the existing ozone-related provisi ons of 40 CFR Subpart H remain appropriate. Therefore, EPA expects that for purposes of the 1997 8-hour ozon e NAAQS, states need only to confirm that they have existing emergency epis ode plan provisions consistent with EPA’s existing regulatory requirements. 31
The rules at 30 TAC 118 pr ovide for the pollutants specified under 40 CFR 51.150. Using 2008-2010 data, areas within Texas meet the classification for Priority 1 for 1-hour ozone.
We found that 30 TAC 118 is consistent with the provisions of 40 CFR 51.151 and 152, and Appendix L to Part 51. The state's rules at 30 TAC 118 are approved into the Texas SIP (65 FR 45915). While the state has appropriate gene ral emergency powers to address PM 2.5 related episodes, SHLs for PM 2.5 are not provided under Subpart H, nor have SHLs for the 1997 PM 2.5 standards been proposed by EPA. The Texas SIP has not been re vised to address contingency plans for PM 2.5 . To evaluate whether the Texas SIP provi des adequate contingency plans for the
1997 PM 2.5 NAAQS, EPA used guidance issued in 2009 for the 2006 PM 2.5 NAAQS. 32, 33 The

31 October 2, 2007 Guidance on SIP Elements Required Under Sections 110(a)(1) and (2) for the 1997 8-hour Ozone
and PM 2.5 NAAQS, Memorandum from William T. Harnett, Director, Air Quality Policy Division, OAQPS.

32 “Guidance on SIP Elements Required Under Section 110(a)(1) and (2) for the 2006 24-Hour Fine Particle (PM 2.5 ) National Ambient Air Quality Standard s (NAAQS)”, September 29, 2009 memorandum from William T. Harnett, Director, Air Quality Policy Division to Regional Air Division Directors.23 2009 Guidance for PM 2.5 recommends that a state with at least one monitored 24-hour PM 2.5 value exceeding 140.4 μg/m 3 since 2006 establish an emergenc y episode plan and contingency measures to be implemented should such le vel be exceeded again. Additionally, the 2009
Guidance for PM 2.5 recommends that if no area of a state has exceeded this 140.4 μg/m 3 level since 2006 and the state has appropriate general emergency powers to address PM 2.5 related episodes, then no specific emergency episode plans are necessary at this time given the existing
monitored levels. The 2006-2010 data for Texas 34 do not exceed 140.4 μg/m 3 and have consistently remained below the level of 140.4 μg/m 3 . In fact, these data indicate that levels of

PM 2.5 in Texas have stayed below 100 μg/m 3 . In addition, Subpart H at 51.153 provides for reevaluation of episode plans and requires that, “States should periodicall y reevaluate priority classifications of all Regions or portion of Regi ons within their borders. The reevaluation must consider the three most recent year s of air quality data. If the ev aluation indicates a change to a higher priority classification, a ppropriate changes in the episode plan must be made as expeditiously as practicable.” The Texas data does not indicate a change to a higher priority, but suggests that emergency episode plans for the PM 2.5 NAAQS are not needed at this time. We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(G).

8. Future SIP revisions : Section 110(a)(2)(H ) requires states to have the authority to revise their SIPs in response to changes in the NAAQS, availability of improved methods for attaining NAAQS, or in response to an EPA finding th at the SIP is substantially inadequate.

The State’s response : “Texas regularly revises its SIP in response to revisions in the NAAQS and EPA rules. See [section] 110(a)(2)(A), above.”

EPA analysis : As stated above, the TCAA authorizes th e TCEQ to establish the level of quality
to be maintained in the State’s air and to cont rol the quality of the St ate’s air by preparing and developing a SIP under sections 382.011 a nd 382.012. The TCAA under section 382.011 further provides the TCEQ with “the powers necessary or convenient to carry out its responsibilities.” Section 382.017 authorizes the TCEQ to adopt rules and section 382.036 requires that the TCEQ “advise, consult, and cooperate with [...] the fe deral government.” Thus, Texas has the authority to revise its SIP as may be necessary to account for revisions of the NAAQS, adopt more effective methods of attaining the NAAQS, and re spond to EPA SIP calls. We are proposing that the Texas SIP meets the require ments of section 110(a)(2)(H).

9. Consultation, public notice, and PSD and visibility protection : Section 110(a)(2)(J) requires states to provide a pr ocess for consultation with local governments and Federal Land Managers carrying out NAAQS implementation requi rements pursuant to section 121 relating to consultation. Section 110(a)(2)(J ) further requires states to notify the public if NAAQS are exceeded in an area and to enhance public awaren ess of measures that can be taken to prevent exceedances. Section 110(a)(2)(J) also requires Stat es to meet applicable requirements of Part C related to prevention of significant dete rioration and visibi lity protection.

The State's response : Texas has an established public part icipation process for all SIP revisions and permitting programs. The TCEQ consults with other state agencies, local agencies, and non-

33 On October 17, 2006, EPA revised the 24-hour PM 2.5 NAAQS from 65 μ g/m 3 to 35 μ g/m 3 (see 71 FR 61144).

34 The PM data are available to the public through the St ate website (www.tceq.texas.gov/agency/data/pm25.html).24 governmental organizations, as well as with the e nvironmental agencies of other states regarding air quality concerns. All major sources in Te xas are subject to Te xas’ SIP approved PSD program. Texas is currently preparing a SIP revi sion to address Regional Haze, including a longterm strategy to address visibility impairment for each Class I area that may be impacted by emissions from Texas facilities. TCEQ referenc ed the following from 30 TAC as relevant to meet this requirement:

Chapter 7 Memoranda of Understanding Chapter 35 Emergency and Temporary Orde rs and Permits; Temporary Suspension or
Amendment of Permit Conditions ; Subchapters A, B, C, K Chapter 101 General Air Quality Rules Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification

EPA analysis : Regarding consultation with government officials, section 110( a)(2)(J) requires states to provide a process for consultation w ith local governments and Federal Land Managers carrying out NAAQS implementation requirements pursuant to section 121 of the Act, relating to consultation. Section 121(1) addresses any trans portation controls, air qu ality maintenance plan requirements or preconstruction re view of direct sources of ai r pollution, and section 121(2)(B) addresses measures pertaining to PSD. Section 382.036 of the TCAA requires the TCEQ to “advise, consult, and cooperate with other state agencies, political subdivisions of the state, [...] other states, the federal government, and interested persons or groups concerning [...] ai r quality control.” In a ddition, as discussed in Sections II.1 and II.12 of this TSD, 30 TAC 7 prov ides for agreements w ith other agencies, to clarify areas of responsibility. Several MOUs have been approved into the Texas SIP, 35 including an MOU with TxDOT, described in Section II.1 of this TSD. We are proposing that the Texas SIP meets this portion of section 110(a)(2)(J). Regarding public notification, s ection 110(a)(2)(J) re quires states to notify the public if NAAQS are exceeded in an area and to enhance pub lic awareness of measures that can be taken to prevent exceedances. The TCEQ provides air quality forecasts via email notification, which advise the public of conditions capable of excee ding the 2008 ozone standard for each day of the

ozone season 36 for each forecast area. 37 Texas revised its forecast from the 1997 ozone standard to the 2008 ozone standard by May 27, 2008, the effec tive date of the 2008 ozone standard (see 73 FR 16436, March 27, 2008). Ozone warning e-mail notifications are generated automatically for the Austin, DFW, Houston, and San Antonio areas, about 20 minutes after the hour when the
monitors measure levels above the 2008 ozone standard. As described in Section II.7 above, provisions regarding control of air pollution episodes and the Texas emergency episode contingency plan were first approved into the SI P at 47 FR 44260 and revisions to this plan were

35 See footnote 37.

36 The length of the ozone season in Texas varies depending on location. El Paso and areas in Southeast Texas, including Brownsville, Laredo, Corpus Christi, Victoria, Ho uston and Galveston have an ozone season from January through December. Areas in the remai nder of the state, including Texarkan a, Tyler, Abilene, Wichita Falls, Amarillo, Lubbock, Austin, Waco, DFW, San Antonio, Midl and, Odessa, and San Angelo have an ozone season from March through October. See 62 FR 30270, June 3, 1997 and Table D-3 in 40 CFR Part 58, Appendix D. Texas begins its ozone forecasting on May 1, as the weather co nditions in March and April have historically been less
conducive to ozone formation.

37 There are nine forecast areas: Austin, Beaumont-Port Arthur, Dallas-Fort Worth, Corpus Christi, Victoria, Houston-Galveston-Brazoria, San Antonio, El Paso-Juarez, and Tyler-Longview-Marshall.25 approved at 55 FR 36632 and 65 FR 45915. We are proposing that the Texas SIP meets this portion of secti on 110(a)(2)(J). Regarding PSD and visibility protection: Se ction 110(a)(2)(J) requires States to meet applicable requirements of Part C related to prevention of signifi cant deterioration and visibility protection. As detailed in Section II.3 in this TSD (addressing section 110(a)(2)(C)), the Texas PSD program, with the exception of GHGs, has b een approved into the SIP. EPA is not proposing to approve the PSD program in full pursuant to section 110( a)(2)(J) because Texas does not have adequate legal authority to implement the PSD permitting program with respect to
GHG emissions. The State has a FIP for the PSD program related to permitting GHGs at or above the Tailoring Rule thresholds (76 FR 25178). Texas included a re ference to 30 TAC 101 as relevant to meeting this in frastructure element, and applic able sections of 30 TAC 101 (e.g., 101.21) are in the Texas SIP (see 42 FR 27894, June 1, 1977). EPA approved the Texas Visibility Protecti on Plan Long-Term Strategy for Visibility Protection on February 23, 1989 (54 FR 7767). The State’s most recent SIP revision addressing Regional Haze was submitted to EPA on March 19, 2009, and we will take action on it in a separate rulemaking. With regard to the appli cable requirements for visibility protection, EPA recognizes that states are subj ect to visibility and regiona l haze program requirements under
sections 169A and 169B of the Act. In the event of the establis hment of a new NAAQS, however, these visibility and regional haze progr am requirements do not change. Thus, we find
that there is no new visibili ty obligation triggered under se ction 110(a)(2)(J) when a new NAAQS becomes effective. We ar e proposing that the Texas SIP m eets the visibility portion of section 110(a)(2)(J). Regarding PSD and visibility protection, we are proposing to find that the Texas SIP meets the requirements of this portion of sectio n 110(a)(2)(J) with resp ect to the 1997 8-hour
ozone and 1997 and 2006 PM 2.5 NAAQS with the exception of s ection 110(a)(2)(J) as it relates to the GHG component of the PSD program. EPA is proposing disapproval of section 110(a)(2)(J) as it relates to th e GHG component of the PSD progr am with respect to the 1997 8-
hour ozone and 1997 and 2006 PM 2.5 NAAQS.

10. Air quality modeling a nd submission of data : Section 110(a)(2)(K) requires that SIPs provide for performing air quality modeling for predicting effect s on air quality of emissions from any NAAQS pollutant and submissi on of such data to EPA upon request.

The State’s response : “Air quality modeling is conducted duri ng development of revisions to the Texas SIP, as appropriate for the state to de monstrate attainment with required air quality standards. Modeling is also a part of th e new source review permitting program.” TCEQ references 30 TAC 116, Control of Air Po llution by Permits for New Construction or
Modification.

EPA analysis : The EPA currently does not have regul ations concerning modeling for the SIP demonstration purposes, but has issued guidance. 38 Modeling and emissions reductions measures have been submitted by Texas and approved into the SIP. For example, we reference the air modeling and emissions reductions data submitted within the attainment demonstrations for the

38 See EPA’s “Guidance on the Use of Models and Other Analyses in Attainment Demonstrations for the 8-hour Ozone NAAQS,” October 2005; and “Guidance on the Use of Models and Other Analyses for Air Quality Goals in Attainment Demonstrations for Ozone, PM2.5, and Regional Haze,” April 2007.26 Early Action Compact (EAC) SIPs for Au stin, Northeast Texas and San Antonio. 39 Modeling
and emissions reductions data were also submitted with the attainment demonstration SIP for the Dallas/Fort Worth (DFW) 1997 8-hour ozone moderate nonattainment area. 40 The measures in these four SIPs were approved by EPA and adopted into the SIP. As the state indicated, modeling is also part of the NSR permitti ng program and may be required, pursuant to 30 TA C 116.111(a)(2)(G) and (J), 116.1 60(c)(2)(A) and (B), and 116.160(d). Modeling for NSR is discussed in Sec tion II.3 above. The rules at 30 TAC 116 listed herein are approved in the Texas SIP. We are proposing that the Texas SIP meets the requirements of s ection 110(a)(2)(K).

11. Permitting fees : Section 110(a)(2)(L) requir es SIPs to require each major stationary source to pay permitting fees to cover the cost of re viewing, approving, implementing and enforcing a permit.

The State's response : TCEQ assesses fees for reviewing perm it applications and for enforcing the terms and conditions of permits. TCEQ referenc ed the following from 30 TAC as relevant to meet this requirement:

Chapter 12 Payment of Fees Chapter 101 General Air Quality Rules Chapter 106 Permits by Rule, Subcha pter A, General Requirements Chapter 116 Control of Air Pollution by Permits for New Co nstruction or Modification

EPA analysis : The TCAA authorizes and requires the TC EQ to charge and collect application, permit, and inspection fees (THSC 382.062), including fees for permits subject to Titles IV and V of the Act, and those not subject to Titles IV and V of the Act (see THSC 382.0621). The rules at 30 TAC 12 address penalties and interest on fees owed the state under the jurisdiction of TCEQ. The rules at 30 TAC 101.24 and 101.27 address inspection and emissions fees, respectively. These rules are enforceable by Texas, but they are not in the SIP and as such, are not federally enforceable.
We were unable to find a reference to f ees in 30 TAC 106, Subchapter A, but in Subchapter B, Section 106.50 establishes the f ee schedule for permits by rule (PBR) and is approved in the Texas SIP (March 20, 2009, at 74 FR 11851). Section 106.50 directs PBR applicants to submit $100 if classified as a sma ll business, municipalit y, county, or independent school district with a population of 10,000 or fewe r residents. All other entities must submit $450 with the registration form. Section 106.50 furt her explains how to submit the fee. The registration fee under sec tion 106.50 does not apply if the sole purpose of the registration form is to establish federally enforceable emissions limits under section 106.6 or for remediation projects conducte d under section 106.533. 30 TAC 116 addresses permitting for new cons truction or modification, and associated
fees. The sections in the Texas SIP that a ddress fees are listed in Table 6 below.

39 On August 19, 2005, the Austin EAC SIP (70 FR 48640) and the Northeast Texas EAC SIP (70 FR 48642) were approved. On August 22, 2005, the San Antonio EAC SIP was approved (70 FR 48877).

40 For example, see the DFW attainment demonstration SI P, which received conditional approval and full approval on January 14, 2009 (74 FR 1903).27 Table 6: Texas rules relevant to meeting sectio n 110(a)(2)(L):

Relevant Section of the Texas SIP EPA Approval/FR Citation 30 TAC 106.50 Registration Fees fo r PBR March 20, 2009 at 74 FR 11851

30 TAC 116.141 Determination of Fees 74 FR 11851 30 TAC 116.143 Payment of Fees 74 FR 11851

30 TAC 116.163 PSD Permit Fees 74 FR 11851 30 TAC 116.313 Renewal Application Fees 74 FR 11851

30 TAC 116.614 Standard Permit Fees 74 FR 11851

30 TAC 116.926 Permit Fee January 11, 2011 at 76 FR 1525

The sections listed in Table 6 above are in the Texas SIP and meet the requirements of section 110(a)(2)(L). We are proposing that the Te xas SIP meets the requirements of section 110(a)(2)(L).

12. Consultation/participation by affected local entities : Section 110(a)(2)(M ) requires states to provide for consultation and participation in SIP development by local political subdivisions affected by the SIP.

The State’s response : “The TCEQ has several cooperati ve agreements and Memoranda of Understanding [MOU] with various other stat e and local agencies and organizations. Consultation with a variety of different organizations is a regu lar part of TCEQ’s process of developing SIP revisions.”

EPA analysis : As noted in Section II.9 above, the THSC at section 382.036 requires the TCEQ to advise, consult and cooperate with other state agencies, lo cal governments, industry, other states and the federal government on air quality issues (46 FR 61124). Per 40 CFR 51.240, each SIP must identify organi zations, by official title, which will participate in developing, implementing and enforc ing the plan and the responsibilities of such organization. The plan shall include any rela ted agreements or memoranda of understanding among the organizations. The TCEQ has a Memoranda of Agreement (MOA) with each of five local political subdivisions, incl uding the cities of Da llas and Fort Worth; the Houston Airport System; the DFW International Airport Boar d; and the North Central Texas Council of Governments (NCTCOG), 41 as listed in Table 7 below. The TCEQ also has a MOU with the TxDOT (70 FR 73380), which is de scribed in Section II.1 above.

Table 7: Memoranda of Agreement in the Texas SIP Summary of MOA/MOU EPA Approval/FR Citation MOA with Houston Airport System to implement reductions in NOx emissions for their ground support equipment. Nov 14, 2001 at 66 FR 57219

MOA with Dallas, Fort Worth and DFW International Airport (DFWIA) Board to implement reductions in NOx emissions for their ground support equipment. Apr 22, 2002 at 67 FR 19515

41 See MOA with the Houston Airport System (66 FR 57219, November 14, 2001); MOAs with the cities of Dallas and Fort Worth and the DFW International Airport Board (67 FR 19515, April 22, 2002); MOA with the North Central Texas Council of Governments (70 FR 20816, April 22, 2005); and MOU with the TX Dept. of Transportation (70 FR 733 80, December 12, 2005).28 MOA with NCTCOG, that NCTCOG will provide emissions offsets to the DFWIA for planne d airport construction projects. Apr 22, 2005 at 70 FR 20816

These four agreements are in the Texas SIP. We are proposing that the Texas SIP meets the requirements of section 110(a)(2)(M).

III. EPA’s Recommendation We reviewed the Texas submittal, SIP, and air quality data for ozone and PM 2.5 for compliance with the infrastructure requirements of sections 110(a)(1) and (2) of the Act for the
1997 8-hour ozone and 1997 and 2006 PM 2.5 standards. We recommend that EPA propose to partially approve and partially disapprove the Texas SIP submitt als that identify where and how the 14 basic infrastructure elements are incorpor ated in the EPA-approved SIP as specified in section 110(a)(2) of the Act for the 1997 8-hour ozone and 1997 and 2006 PM 2.5 standards and
as described in Section III.B below. In addi tion, we recommend that EPA propose to partially approve and partially disapprove the Texas SIP subm ittals for Interstate Transport as specified in section 110(a)(2)(D)(i)(II) of the Act for the 1997 8-hour ozone and PM 2.5 standards and as
described in Section III.C below.

A. What is a Partial Approval, Partial Disapproval? Section 110(k)(3) of the Ac t states that EPA may part ially approve and partially disapprove a SIP submittal if it finds that only a portion of the submittal meets the requirements
of the Act. We believe that the Texas SIP m eets a majority of the requirements of section 110(a)(2) of the Act and that sp ecific portions of three elements of section 110(a)(2) are not

met. 42 Because the portions proposed for disapproval are independent from those proposed for approval, we believe that the Texas Infrastructu re SIP can be partiall y approved and partially disapproved. Enforcement of a state regulation (or rule) be fore and after it is incorporated into the federally approved SIP is primarily a state respon sibility. However, after the rule is federally approved, we are authorized to take enforcemen t action against violators. Citizens are also offered legal recourse to address violations as described in secti on 304 of the Act. If a state rule is disapproved, it is not incorpor ated into the federally approved SIP, and is not enforceable by EPA or by citizens under section 304. In the case of a revision to a federally approved state rule, disapproval of the revision mean s that the underlying rule pr ior to the state's April 4, 2008 submittal remains as the federally enforceable requirement. Disapproval of any of the Texas infrastructure SIP elements would not trigger sanc tions under section 179 of the Act, because the submittals are not required by part D of Title I of the Act and are not required by a call for a SIP revision under section 110(k)(5) of the Act. However, as noted earlier in this TSD, EPA published a finding on March 27, 2008 (73 FR 16205) re garding whether or not states had made the section 110(a)(2) submissions for ozone and found that Texas had failed to make a complete submission. This finding started a 24-month dead line for promulgation by EPA of a FIP. EPA’s disapproval of the infrastructure and transport elements here do not engender an additional statutory obligation, because EP A promulgated a FIP for the Texas PSD program related to permitting GHGs at or above the Tailoring Rule th resholds (76 FR 25178). This FIP will remain in place until Texas submits and EPA appr oves revisions that a ddress the disapproved infrastructure and transport elements (the portions of sections 110(a)(2)(C), 110(a)(2)(J) and

42 The three elements refer to the infrastructure and transport SIP elements discussed in section II above.29 110(a)(2)(D)(i)(II) that address PSD ). The CSAPR addresses secti on 110(a)(2)(D)(i)(I) for the
1997 ozone and 1997 and 2006 PM 2.5 NAAQS for Texas. 43 We will take action on the remaining prong of section 110(a)(2)(D)(i) (II), addressing visibility, in a separate rulemaking.

B. EPA’s Recommendation on the Section 110(a)(1) and (2) Infrastructure SIP

Elements
For the 1997 Ozone and 1997 and 2006 PM 2.5 NAAQS, we are proposing approval of the following elements: Emission limits and other control measures, pu rsuant to section 110( a)(2)(A) of the Act; Ambient air quality monitoring/data system, pur suant to section 110(a )(2)(B) of the Act; Program for enforcement of control measures, pursuant to section 110(a)(2)(C) of the Act, except as it relates to GHGs; Interstate transport, pursuant to section 110(a)(2)(D)(i i) of the Act; Adequate resources, pursuant to section 110(a)(2)(E ) of the Act; Stationary source monitoring system, pursuan t to Section 110(a )(2)(F) of the Act; Emergency power, pursuant to sec tion 110(a)(2)(G) of the Act; Future SIP revisions, pursuant to section 110(a)(2)(H ) of the Act; Consultation with government officials, pur suant to section 110( a)(2)(J) of the Act; Public notification, pursuant to section 110(a)(2)(J) of the Act; Visibility protection, pursuant to section 110(a)(2)(J ) of the Act; PSD, pursuant to section 110(a)(2)(J) of the Act, except as it relates to GHGs; Air quality and modeling/data, pursuant to section 110(a)(2)(K) of the Act; Permitting fees, pursuant to sec tion 110(a)(2)(L) of the Act; Consultation/participation by affected local entiti es, pursuant to section 11 0(a)(2)(M) of the Act;

For the 1997 Ozone and 1997 and 2006 PM 2.5 NAAQS, we are proposing disapproval of the following elements: Program for enforcement of control measures, pur suant to section 110(a)( 2)(C) of the Act, only as it relates to GHGs; PSD, pursuant to section 110(a)(2)(J) of th e Act, only as it relates to GHGs.

C. EPA’s Recommendation on the Section 110(a)(1) and (2) Transport SIP
Elements for the 1997 Ozone and PM 2.5 NAAQS We are proposing to approve the Texas Inters tate Transport SIP pr ovisions that address the requirement of section 110(a )(2)(D)(i)(II) that emissions from sources in Texas do not interfere with measures required in the SIP of any other state unde r part C of the CAA to prevent significant deterioration of ai r quality, except as they relate to GHGs. We are proposing to disapprove the portion of the Texas Interstate Transport SIP provisions that address the requirement of section 110(a)(2)(D )(i)(II), as it relates to GHGs, th at emissions from sources in Texas do not interfere with measures required in the SIP of any other state under part C of the CAA to prevent significant deterioration of air quality. We will act on the remaining three elements regarding interstate tr ansport, per section 110(a)(2)(D)(i) of the Act in a separate rulemaking.

43 76 FR 4820830 IV. References

1. Guidance on SIP Elements Required Under Sections 110(a)(1) and (2) for the 1997 8-hour
Ozone and PM 2.5 NAAQS, Memorandum from William T. Ha rnett, Director, AQPD, OAQPS, to
Air Division Director s; dated October 2, 2007.

2. Guidance on SIP Elements Required Under Section 110(a)(1) and (2 ) for the 2006 24-Hour Fine Particle (PM 2.5 ) NAAQS, Memorandum from William T. Harnett, Director, AQPD, OAQPS, to Regional Air Division Directors, dated September 25, 2009.

3. Guidance for State Implementation Plan (S IP) Submission to Meet Current Outstanding Obligations Under Section 110(a)(2)( D)(i) for the 8-Hour Ozone and PM 2.5 National Ambient Air Quality Standards” Memorandum from Willia m T. Harnett, Director, AQPD, OAQPS, to Regional Air Division Directors; dated August 15, 2006

4. Guidance on the Use of Models and Other Anal yses in Attainment Demonstrations for the 8- hour Ozone NAAQS, October 2005. 44

5. Guidance on the Use of Models and Other An alyses for Air Quality Goals in Attainment Demonstrations for Ozone, PM 2.5 , and Regional Haze, April 2007.

44 This and other EPA guidance addressing the use of models can be found at www.epa.gov/ttn/scram/guidance_sip.htm#8ozone.31 Appendix to the Technical Support Document for

Texas State Implementation Plan Infrastructure and Interstate Transport Elements Required Under Section 110(a)(2 ) for the 1997 8-hour Ozone and the 1997 and 2006 Fine Particulate Matter (PM 2.5 ) NAAQS

Section 110(a)(2)(C): NOx as a Precursor to Ozone

Docket ID EPA-R06-OAR-2008-0638 September 2011

Table of Contents:

I. Introduction

II. Why is EPA reviewing revisi ons to 30 TAC 101.1 and 116.12?

III. Revisions to 30 TAC 116.12

A. Background

B. The state’s submittal and EPA’s evaluation
IV. Revisions to 30 TAC 101.1
V. EPA’s Recommendations

I. Introduction To meet the requirements of section 110(a)(2 )(C) of the Clean Air Act (CAA or Act) for the 1997 ozone standard, the Envi ronmental Protection Agency (EPA) believes the State must have updated its rules for Preven tion of Significant Deteriorati on (PSD) to treat nitrogen oxides (NOx) as a precursor to ozone (70 FR 71612, November 29, 2005). The Texas Commission on Environmental Quality (TCEQ) submitted revisi ons on June 10, 2005 and February 1, 2006 that would accomplish this. However, portions of th e 2005 and 2006 submittals did not meet federal requirements and the provisions for NOx as a precu rsor were not treated as severable from the
submittal. 45 Thus the revisions were wholly di sapproved on September 15, 2010 (75 FR 56424). On March 11, 2011, the TCEQ resubmitted the di sapproved provisions, together with new revisions, in two separate submissions. On May 26, 2011, TCEQ submitted a minor correction to
one of the March 2011 submittals. We are not taking action on the submittal packages as a whole, but on a limited portion, as described below. This Appendix to the Technical Support Document (TSD) primarily evaluates the portions of these submittals that address NOx as a

precursor. One of the March 2011 submittals provides revisions to Title 30 of the Texas Administrative Code (30 TAC), Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification (d enoted 30 TAC 116); this submittal will be referred to as “2011- A”. The other March 2011 submittal includes revisions to two chapters: 30 TAC 101 – General Air Quality Rules and 30 TAC 116; this submittal will be referred to as “2011-B”. The May 26, 2011 submittal provides a non-substantive correcti on to the 2011-B submittal. These revisions

45 By severable, we mean that the por tions of the SIP revision that address NOx as a precursor can be implemented independently of the remaining portions of the submittal, w ithout affecting the stringency of the submitted rules. In addition, the remaining portions of the submittal are not necessary for approval of the provisions addressing NOx as

a precursor.32 are described in greater detail in Sections II a nd III of this TSD and are summarized in Tables 1 and 2 below. The TCEQ provided to EPA the following submissions:

1. Resubmittal of revisions, previously submitted June 10, 2005 (under Rule Project No. 2005-009-116-AI) and February 1, 2006 (unde r Rule Project No. 2005-010-116-PR), which EPA disapproved at 75 FR 56424;

2. Two separate revisions submitted Marc h 11, 2011, under Rule Project Nos. 2010-008- 116-PR (2011-A) and 2008-030-116-PR (2011-B); and 3. A correction submitted May 26, 2011, for Rule Project No. 2008-030-116-PR.

Table 1. SIP Submittals Addressed in this Action

Description of SIP
Submittal Texas Rule Project Number Submitted
to EPA Adopted by State Effective as
State Rule Rules Addressed in this Action

NSR for 8-Hour
Ozone Standard 2005-009-116-AI 6/10/2005 5/25/2005 6/15/2005 30 TAC 116.12

Federal NSR Permit
Rules Reform 2005-010-116-PR 2/1/2006 1/11/2006 2/1/2006 30 TAC 116.12

1- Hour Ozone Major
Source Thresholds
and Emission Offsets 2008-030-116-PR 3/11/2011 2/9/2011 3/3/2011 30 TAC 101.1 and 116.12 (The 2011-B submittal)

NSR Reform 2010-008-116-PR 3/11/2011 2/9/2011 3/3/2011 30 TAC 116.12 (The 2011-A submittal)

Correction 2008-030-116-PR 5/26/2011 2/9/2011 4/22/2011 46 30 TAC 101.1

Table 2. Accounting of Texas Rule Re visions Addressed in this Action

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

30 TAC 101.1 – Definitions 2008-030-116-PR 3/11/2011 2/9/2011 Amended paragraphs (54), (70), and (88) (The 2011-B submittal) 2008-030-116-PR 5/26/2011 2/9/2011 Correction to paragraph (115)

30 TAC 116.12 – Nonattainment

and Prevention of Significant
Deterioration Review Definitions 2005-009-116-AI 6/10/2005 5/25/2005 Amended introductory paragraph

2005-010-116-PR 2/1/2006 1/11/2006 See footnote below. 47
2008-030-116-PR 3/11/2011 2/9/2011 Amended paragraph (18)(A) (The 2011-B submittal) 2010-008-116-PR 3/11/2011 2/9/2011 Amended introductory paragraph (The 2011-A submittal)

This document includes an evaluation of each rule revision, including underline and
strikeout annotations of the submitted rules to show how each rule is revised and an explanation for how each revision meets the requirements fo r SIP approval under Title 40 of the Code of Federal Regulations, part 51 (denoted 40 CFR 51) and the Act.

II. Why is EPA evaluating revisions to both 30 TAC 101.1 and 30 TAC 116.12? Section 116.12 of Chapter 116 (denoted §116.12) addresses Nonattainment Review and Prevention of Significant Deterioration Review De finitions. This section is revised to add NOx as a precursor for PSD. We are evaluating revisi ons to the title of §116.12 and three definitions within §116.12. One of these definitions make s a reference to 30 TAC 101.1(70). Section

46 Date the correction was published in the Texas Register (36 TexReg 2623).

47 We are evaluating the changes to the title of §116.12; the addition of new paragrap h (14); and the renumbering and other revisions to paragraphs (10) and (11), renumbered to (17) and (18), respectively.33 101.1(70) is also referenced in 30 TAC 101.1(88). Since the cross-referenced sections (or paragraphs) must make sense, we had to broaden our review to include submitted revisions to the associated paragraphs in §101.1. In addition, we are evaluating revisions to subparagraphs a nd subsections of the three definitions in §116.12 because it is easier to mainta in the continuity of th ese definitions by acting
on revisions to the de finition as a whole.

III. Revisions to 30 TAC 116.12

A. Background

On July 18, 1997, EPA promulgated a new Na tional Ambient Air Quality Standard (NAAQS or standard) for ozone based upon 8-hour average concentrations. This replaced the previous 1-hour standard a nd the level of the NAAQS was changed from 0.12 parts per million (ppm) to 0.08 ppm (62 FR 38856). On April 30, 2 004 (69 FR 23951), we published a final rule that addressed key elements related to implementation of the 1997 8-hour ozone NAAQS including, but not limited to revocation of the 1-hour NAAQS and how anti-backsliding principles will ensure continued progress towa rd attainment of the 1997 8-hour ozone NAAQS (Phase I Rule). We codified the anti-backslid ing provisions governing the transition from the revoked 1-hour ozone NAAQS to the 1997 8-ho ur ozone NAAQS in 40 CFR 51.905(a). The 1- hour ozone major nonattainment NSR SIP require ments indicated that certain 1-hour ozone requirements were not part of the list of an ti-backsliding requirements provided in 40 CFR 51.900(f). On December 22, 2006, the D.C. Circuit vacated the Phase 1 Implementation Rule in its entirety. South Coast Air Quality Manageme nt District, et al., v. EPA , 472 F.3d 882 (D.C. Cir. 2006), rehearing denied 489 F.3d 1245 (2007) (clarifying that the vacatur was limited to the issues on which the court granted the petitions for review). EPA re quested rehearing and clarification of the ruling and on June 8, 2007, the Court clarified that it was vacating the rule only to the extent that it ha d upheld petitioners’ challenges. Thus, the Court vacated the provisions in 40 CFR 51.905(e) that waived obligations under the revoked 1-hour standard for NSR. The court’s ruling, therefore, maintains major nonattainment NSR a pplicability thresholds and emission offsets pursuant to classifications previously in effect for areas designated nonattainment for the 1-hour ozone NAAQS. As noted earlier, the TCEQ submitted revi sions to 30 TAC 116 in 2005 and 2006 that EPA disapproved at 75 FR 56424. The 2005 and 2006 subm issions related to the transition from the major nonattainment NSR requirements app licable for the 1-hour ozone NAAQS to the major nonattainment NSR requirements applicab le to the 1997 8-hour ozone NAAQS. Texas’s revisions at 30 TAC 116.12(18)(A) (i.e., footnote 6 in Table I unde r the definition of “major modification”) effective as state law on June 15, 2005, provide that for “the Houston-GalvestonBrazoria, Dallas-Fort Worth, and Beaumont-Port Arthur eight hour ozone nonattainment areas, if the [EPA] promulgates rules requiring new source re view 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 standard classification” and “[...] the de minimis threshold test (netting) is required for all modifications to existing major sources of VOC or NO

x in that area.” Footnote 6 adds a new requirement for an affirmative regulatory acti on by EPA on the reinstatement of the 1-hour ozone NAAQS major nonattainment NSR requireme nts before the legally applicable major nonattainment NSR requirements under the 1-hour ozone standard will be implemented in the34 Texas 1-hour ozone nonattainment areas. 48 Clearly, the submitted revisions to 30 TAC 116.12(18)(A) at footnote 6 do not comport with the South Coast decision. The court opinion reached through the South Coast decision maintains the lower applicability thresholds and more stringent offset ratios for a 1-hour ozone nonattainment area
whose classification under that standard was hi gher than its nonattain ment classification under
the 8-hour standard. In the submitted rule revision , the lower applicability thresholds and more stringent offset ratios for a clas sified 1-hour ozone nonattainment area would not be required in a Texas 1-hour ozone nonattainment area unless and until EPA promulgated a rulemaking implementing the South Coast decision. EPA proposed that the Texas revision relaxes the requirements of the approved SIP and we stated that EPA lacks sufficient information to
determine whether this relaxation would not interfere with any applicable requirement concerning attainment and reasona ble further progress, or any ot her applicable requirement of the Act ( see 74 FR 48467, at 48473) 49 and our disapproval was finalized at 75 FR 56424. However, while the 2005 revision fails to comp ly with the CAA, the existing approved SIP meets CAA requirements ( see 57 FR 28093).

B. The state’s submittal and EPA’s evaluation

To resolve the disapproval of the 2005 a nd 2006 submittals with respect to the 1-hour ozone thresholds and offsets (75 FR 56424), the TC EQ submitted revisions that delete portions of 30 TAC 116.12(18)(A) concerning major m odification. The rulemaking clarifies that permitted facilities in areas that were designate d nonattainment for the 1-hour ozone standard are subject to the major source thresholds and em ission offset requirements of the 1-hour ozone standard: (1) the TCEQ amended footnote 1 in Table I to remove reference to the CFR and replace it with a reference to the definiti on of nonattainment area in 30 TAC 101.1(70). The reference to the CFR is no longer necessary be cause the definition of nonattainment area in §101.1(70) refers to 40 CFR 81 – Designation of Ar eas for Air Quality Planning Purposes; (2) the TCEQ removed the second sentence from foot note 3 in Table I rega rding nonattainment NSR rules in El Paso County. EPA clarified its approv al of the El Paso area 8-hour ozone maintenance plan on October 20, 2010 (75 FR 64675), thus n onattainment NSR no longer applies for the 1997
8-hour ozone standard in the El Paso area and the Texas NSR SIP is clear that PSD requirements apply to an area such as El Paso. 50 The sentence in footnote 3, that nonattainment NSR rules apply to sources of VOCs in El Paso County, is therefore not necessary under the 1997 ozone standard; (3) the TCEQ removed footnote 6 in Table I , which fo rmerly indicated that the EPA must complete rulemaking before NSR applica tions are evaluated acco rding to their 1-hour
classification. The EPA has stated that the South Coast decision did not require rulemaking by the EPA to be effective, and NSR applic ations should be eval uated based upon 1-hour classifications if they are more stringent than an area's eight-hour cl assification (75 FR 56424). We disapproved footnote 6 in an earlier ac tion (75 FR 56424) and recommend approval of the

48 These revisions were also made to the introductory paragraph at 30 TAC 116.150(d). We will take action on revisions to §116.150 in a separation rulemaking.

49 The proposed rulemaking was published on September 23, 2009.

50 The Texas PSD rules at 30 TAC 116.160(a) state, “Each proposed new major source or major modification in an attainment or unc1assifiable area shall comply with th e requirements of this section.” The Texas PSD SIP was initially approved into the SIP on June 24, 1992 (57 FR 28093). Subsequent revisions to the PSD program were approved into the SIP on August 19, 1997 (62 FR 44083), September 18, 2002 (67 FR 58697), July 22, 2004 (69 FR 43752), March 20, 2009 (74 FR 11851) and September 15, 2010 (75 FR 55978).35 removal of footnote 6 here; (4) th e TCEQ removed footnote 7 in Ta ble I, which formerly stated that permit applications in areas designated as nonattainment for ozone under Title I, Part D, Subpart 1 of the Act (42 United States Code (USC ), §7502) will be evaluated as if that area was designated as Marginal. However, Texas does not have any areas currently designated as nonattainment for ozone under Subpa rt 1. The initial designation of nonattainment for the San Antonio area was deferred for the 1997 8-hour ozone NAAQS and the area was designated as attainment, effective April 15, 2008 (73 FR 17897). We disapproved footnote 7 in an earlier action (75 FR 56424) and recommend approva l of the removal of footnote 7 here. Table 3 provides a comparison of the text in the current SIP to the text in the submitted revision for each paragraph under review, and our evaluation comments. Previous revisions to 30 TAC 116.12 were approved into th e SIP on March 20, 2009 (74 FR 11851).

Table 3. Evaluation Matrix for 30 TAC 116.12

Annotation of Submitted Revisions to §116.12 Comments Current SIP Approved 3/20/2009 §116.12. Nonattainment Review
Definitions. Under Review - Rev submitted 2/1/2006 Change is administrative
and meets federal requirements. Resubmitted 3/11/2011 §116.12. Nonattainment and Prevention of Significant Deterioration Review Definitions.

Current SIP Under Review - Rev submitted 6/10/2005 Approved 3/20/2009 Resubmitted 3/11/2011 w/out further change

Unless specifically defined in the 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 re view for major source construction and major source modification in
nonattainment areas. In addition to the terms which are defined by the TCAA, and in §101.1 of this title (relating to Definitions), the following words and terms, when used in §116.150 and §116.151 of this title (relating to Nonattainment Review), shall have the following meanings, unless the context clearly
indicates otherwise. Unless specifically defined in the Texas Clean 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 Ch apter 116, Subchapter B, Divisions 5 and 6 of this title (relating to
Nonattainment Review Permits and Prevention of Significant Deterioration Review; and Chapter 116, Subchapter C, Division 1 of this title (relating to Plant-Wide Applicability Limits) in §116.150 and §116.151 of this title (relating to Nonattainment Review) , shall have the following meanings, unless the context clearly indicates otherwise. Change is administrative
and nonsubstantive. It
continues to meet 40 CFR 51.165(a)(1) and 51.166(b)36 Annotation of Submitted Revisions to §116.12 Comments Revision submitted 2/1/2006; Resub mitted 3/11/2011 w/out further change (14) Federally Regulated NSR pollutant - As defined in subparagraphs (A) - (D) of this paragraph: Meets 40 CFR 51.165(a)(1)(xxxvii)(A)- (C) and 51.166(b)(49)(i)-(iv).
See footnote 7 below. 51
For the 110(a)(2)(C) SIP provision, meets the
federal definition for Regulated NSR
Pollutant at 40 CFR 51.166(b)(49)(i)(a): “[VOCs and NOx] are precursors in all
attainment and
unclassifiable areas.” (A) any pollutant for which a national ambient ai r quality standard has been promulgated and any constituents or precursors fo r such pollutants identified by the United States Environmental Protection Agency; (B) any pollutant that is subject to any sta ndard promulgated under Federal Clean Air Act (FCCA), §111; (C) any Class I or II substance subject to a st andard promulgated under or established by FCCA, Title VI; or (D) any pollutant that otherwise is subject to regulation under the FCAA; except that any or all hazardous air pollutants either listed in FCAA §112 or added to the list under FCAA §112(b)(2), which have not been delisted under FCAA §112(b)(3 ), are not regulated NS R pollutants unless the listed hazardous air pollutant is al so regulated as a constituent or precursor of a general pollutant listed under FCAA §108.

51 At the time EPA approved Texas’s PSD program, the program was flawed because the state did not address how the program would apply to all pollutants that would beco me newly subject to regulation in the future, including non-NAAQS pollutants, among them greenhouse gases (GHGs). To address the flaw, EPA promulgated an interim Federal Implementation Plan (FIP) to assure that GHG-e mitting sources in Texas are able to proceed with new construction or modification plans (75 FR 82430, December 30, 2010). The interim rule expired on April 30, 2011 and is replaced by the final rule (76 FR 25178, May 3, 201 1). Texas will continue to be the permitting authority for non-GHG pollutants for sources that trigger PSD requir ements due to such other pollutants. EPA will be the permitting authority for all pollutants for sources that tr igger PSD solely because of their GHG emissions, which may occur after July 1, 2011, at levels specified under the Tailoring Rule (75 FR 31514, June 3, 2010).37 Current SIP Approved 3/20/2009 Rev submitted 6/10/2005
Resubmitted 3/11/2011

w/o further change Rev submitted 2/1/2006 Resubmitted 3/11/2011 w/o further

change (10) Major facility/ stationary

source - Any facility/ stationary source which emits, or has the potential to emit, the amount specified in the

MAJOR SOURCE
column of Table I of
this section or more of any air contaminant (including volatile organic compounds (VOCs)) for which a
National Ambient Air Quality Standard (NAAQS) has been issued. Any physical change that would occur at a stationary source not qualifying as a major stationary source
in Table I of this section, if the change
would constitute a major stationary source by itself. A major stationary source that is major for VOCs or nitrogen oxides shall be considered major for ozone. The fugitive
emissions of a stationary source shall
not be included in determining for any of the purposes of this
definition whether it is a major stationary source,
unless the source belongs to one of the categories of stationary
sources listed in 40
Code of Federal Regulations §51.165(a)(1)(iv)(C). (10) Major facility/stationary

source - Any facility/stationary source
that which emits, or has the potential to emit, the amount specified in the

MAJOR SOURCE
column of Table I of this section or more of any
air contaminant (including volatile organic compounds (VOCs)) for which a
national ambient air quality standard National Ambient Air Quality Standard (NAAQS) has been issued. Any physical change that
would occur at a stationary source not qualifying as a major stationary source in Table I of this section, if the change would constitute a major stationary source by itself. A major stationary source that is major for VOCs or nitrogen oxides
is shall be considered to be major for ozone. The fugitive emissions of a stationary source may
shall not be included in determining for any of the purposes of this
definition whether it is a major stationary source, unless the source belongs to one of the categories of stationary sources
listed in 40 Code of Federal Regulations §51.165(a)(1)(iv)(C). (17) (10) Major facility/ stationary source - Any facility/ stationary source that emits, or has the potential to emit, a threshold quantity of emissions the amount specified in the MAJOR SOURCE
column of Table I of this section or more of any air contaminant (including volatile organic compounds (VOCs) for which a national ambient air quality standard has been issued. The major
source thresholds are identified in Table
I of this section for nonattainment pollutants and the major source thresholds for prevention of significant deterioration pollutants are identified in 40 Code of Federal Regulations (CFR) §51.166(b)(1). A source that emits, or has the potential to emit a federally regulated new source review pollutant at levels greater than those identified in 40 CFR §51.166(b)(1) is considered major for all prevention of significant deterioration pollutants . Any physical change that would occur at a stationary source not qualifying as a major stationary source in Table I of this section, if the change would const itute a major stationary source by itself. A major stationary source that is major for VOCs or nitrogen oxides is considered to be major for ozone. The fugitive emissions of a stationary source may not be included in determining for any of the purposes of this definition whether it is a major stationary source, unless the source belongs to one of the categories of stationary sources listed in

40 CFR Code of Federal Regulations §51.165(a)(1)(iv)(C). Meets 40 CFR 51.165(a)(1)(iv)(A)(1) and 51.166(b)(1)(i)(a)-(b).

The threshold quantities of
emissions for nonattainment pollutants are in Table I
under the definition of “major modification” under §116.12(18).

This revoked sentence, “Any physical change that would occur at a stationary source not qualifying as a major stationary source in Table I of this section, if the change would constitute a major stationary source by
itself” was moved to 30 TAC 116.12(18)(A).

Regarding the 110(a)(2)(C) infrastructure SIP provisions for the 1997 ozone standard,
this revision meets the federal definition for Major Stationary Source at 40 CFR 51.166(b)(1)(ii): “A major source that is major for [VOCs] or NOx shall be considered major for ozone.”38 Current SIP Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011 w/o further change (11) Major modification - As follows. (18) (11) Major modification - As
follows. (A) Any physical change in, or change in the method of operation of a facility/stationary source that causes a significant net emissions increase for any air
contaminant for which a National Ambient Air Quality Standard has been issued. At a facility/stationary source that is not major prior to the increase, the increase by itself must equal or exceed that specified in the
MAJOR SOURCE column of Table I of this section. At an existing major facility/stationary source, the increase must equal or exceed that specified in the MAJOR MODIFICATION
column of Table I. (A) Any physical change in, or change on the method of operation of a major facility/ stationary source that causes a significant project increase and a significant net emissions increase for any federally regulated new source review air pollutant air
contaminant for which a National Ambient Air Quality Standard (NAAQS) has been issued

. At a facility/stationary source that is not major prior to the increase, the increase by itself must equal or exceed that specified for a major

source the MAJOR SOURCE column of Table
I of this section . At an existing major facility/ stationary source, the increase must equal or exceed that specified for a major modification to be significant . The major source and significant thresholds are provided
in Table I of this s ection for nonattainment pollutants. The major source and significant thresholds for prevention of significant deterioration pollutants are identified in 40 Code of Federal Regulations 40 CFR 51.166(b)(1) and (23) respectively. in the
MAJOR MODIFICATION column of Table I. Revisions meet the following: 40 CFR 51.165(a)(1)(iv)(A)(2) and 51.166(b)(1)(i)(c). 40 51.165(a)(1)(v)(A)(1) and 51.166(b)(2)(i). 40 CFR 51.165(a)(1)(x) and 51.166(b)(23).

Regarding the 110(a)(2)(C) infrastructure SIP provisions for the 1997 ozone standard,
this revision meets the federal definition for Major
modification at 40 CFR 51.166(b)(1) to identify a major source of NOx as a major source for ozone.39 Current SIP Approved 3/20/2009. NOTE: The 2/1/2006 submitted change from “MAJOR MODI FICATION” to “SIGNIFICANT LEVEL” was disapproved 9/15/2010. Resubmitted 3/11/2011 w/o further change.

TABLE I
MAJOR SOURCE/MAJOR MODIFICAT ION EMISSION THRESHOLDS

POLLUTANT Designation 1 MAJOR SOURCE tons/year SIGNIFICANT

LEVEL MAJOR
MODIFICATION 3
tons/year OFFSET RATIO
minimum Nonsubstantive changes. The major source levels

meet 40 CFR 51.165(iv)(A)(1). The significant levels meet 40 CFR 51.165(a)(1)(x). Regarding the 110(a)(2)(C)
infrastructure SIP provisions for the 1997 ozone standard, this
revision meets the federal requirement for significant emission rate
for ozone as VOC or
NOx emissions in 40 CFR 51.166(b)(23)(i). OZONE (VOC, NO

x ) 2

- - -

I marginal 100 40 1.10 to 1

II moderate 100 40 1.15 to 1

III serious 50 25 1.20 to 1

IV severe 25 25 1.30 to 1

CO
- - -

I moderate 100 100 1.00 to 1 4

II serious 50 50 1.00 to 1 4

SO 2 100 40 1.00 to 1 4

PM 10 - - -

I moderate 100 15 1.00 to 1 4

II serious 70 15 1.00 to 1 4

NO

x 5 100 40 1.00 to 1 4

Lead 100 0.6 1.00 to 1 4
Current SIP Approved 3/20/2009 Revi sion submitted 3/11/2011 (8-hr ozone) Change is administrative,
nonsubstantive and
consistent with revisions to 101.1(70). 1 Texas nonattainment area designations are specified in 40, Code of Federal Regulations, §81.344. 1 Texas nonattainment area designations as defined in §101.1(70) of this title. are specified in 40, Code of Federal Regulations, §81.344

. Current SIP Approved
3/20/2009 Rev submitted 2/1/2006 Revision submitted 3/11/2011

2 The major modification threshold is applicable only to existing major sources and
shall be evaluated after netting, unless the applicant chooses to apply
nonattainment new source review (NNSR) directly to the project. Th e appropriate netting triggers for existing major sources of NO

x and VOC are specified in §116.150 of this title (relating to New Major Source or Major Modification in Ozone Nonattainment Areas) and for other pollutants are equal to the major modification level
listed in Table I. 2 The significant level major modification threshold is applicable only to existing major sources and shall be evaluated after netting, unless the applicant chooses to apply
nonattainment new source review (NNSR) directly to the project. Th e appropriate netting triggers for existing major sources of NO

x and VOC are specified in §116.150 of this title (relating to New Major Source or Major Modification in Ozone Nonattainment Areas) and for other pollutants are equal to the major modification level
listed in Table I. 2 The significant level is applicable only to existing major
sources and shall be evaluated after netting, unless the applicant chooses to apply nonattainment new source review (NNSR) directly to the project. The appropriate netting triggers for existing major sources of NO

x and VOC are specified in §116.150 of this title (relating to New Major Source or Major
Modification in Ozone Nonattainment Areas) and for other pollutants are equal to the significant level major
modification level listed in Table

I. Nonsubstantive changes.
Continues to meet 40 CFR 51.165(a)(2)(ii)40 Current SIP Approved 3/20/2009 Revision submitted 3/11/2011

3 VOC and NO

x are precursors to ozone formation and should be quantified individually to determin e whether a source is subject to NNSR under §116 .150 of this title. As specified in §116.150 of this title, for El Paso County, the NNSR rules apply to sources of VOC, but not to sources of NO

x . 3 VOC and NO

x are precursors to ozone formation and should be quantified individually to determine whether a source is subject to NNSR under §116.150 of this title. As specified in §116.150 of this title, for El Paso County, the

NNSR rules apply to sources of VOC, but not to
sources of NO

x . Nonsubstantive change.

Meets 40 CFR 51.165(a)(1)(iv)(A)(1)(i)- (iii) and (a)(1)(vi)(A)(2)(i)-(vi) Discussion on p. xx
above. Current SIP Approved 3/20/2009 No change submitted.

4 The offset ratio is specified to be greater than 1.00 to 1.

VOC = volatile organic compounds

NO

x = oxides of nitrogen
CO = carbon monoxide

SO 2 = sulfur dioxide

PM 10 = particulate matter of less than ten microns in diameter compounds

5 Applies to the NAAQS for nitrogen dioxide (NO 2 ).

Rev submitted 6/10/2005 Resubmitted 3/11/2011 w/ further revision Revision submitted 3/11/2011

6 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 a pplications in these areas to be evaluated for NNSR according to that area’s one-hour standard classification, each application will be evaluated according
to that area’s one hour standard classification.
Evaluation includes both the threshold for determining if there is a major modification as well as the ratio of offsets required along with any other applicable re quirement that depends upon an area’s classification. 6 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 NNSR according to that area’s one

- hour standard classification, each application will be evaluated

acc ording to that area’s one hour standard
classification. Evalua tion includes both the threshold for determining if there is a major modification as well as the ratio of offsets required along with any other applicable requirement that depends upon an area’s classification. As noted in section III.a above, EPA disapproved
the addition of footnotes 6 and 7 in a previous action (75 FR 56424).

The removal of footnotes
6 and 7 address the grounds for the disapproval at 75 FR
56424.

7 For areas designated as nonattainment for
ozone under the Federal Cl ean Air Act, Title I, Part D, Subpart 1 (42 United States Code, §7502), each application w ill be evaluated as if the area was designated as Marginal.
Evaluation includes both the threshold for determining if there is a major modification as well as the ratio of offsets required along with any other applicable re quirement that depends upon an area’s classification. 7 For areas designated as nonattainment for
ozone under the Federal Clean Ai r Act, Title I, Part D, Subpart 1 (42 Un ited States Code, §7502), each application will be evaluated as if the area was designated as Margin al. Evaluation includes both the threshold for determining if there is a major modification as we ll as the ratio of offsets required along with any other applicable requirement that depends upon an area’s
classification.

Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011 w/o further change Nonsubstantive change.
Continues to meet 40 CFR 51.165(a)(1)(C) and 51.166(b)(2)(iii) (B) A physical change or change in the method of operation shall not include: (B) A physical change or change in the method of operation may shall not include: Current SIP Approved 3/20/2009. (i) routine maintenance, re pair, and replacement; (ii) use of an alternative fuel or raw ma terial by reason of an order under the Energy Supply and Environmental Coordination Act of 1974, §2(a) and (b) (or any superseding legislation) or by reason of a natural gas curtailm ent plan under the Federal Power Act; No change submitted.

Current SIP Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011 w/o further change Nonsubstantive change.
Continues to meet 40 CFR 51.165(a)(1)(C)(3) and 51.166(b)(2)(iii)(c) (iii) use of an alternative fuel by reason of an order or rule of the FCAA, §125; (iii) use of an alternative fuel by reason of an order or rule of 42 United States Code, §7425 the FCAA, §125 ; Current SIP – Approved 3/20/2009 No change submitted. (iv) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from munici pal solid waste;41 Current SIP Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011 w/o further change (v) use of an alternative fuel or raw material by a stationary source which the source was capable of accommodating before December 21, 1976 (unless such change would be prohibited under any federally enforceable permit condi tion established after December 21, 1976) or the source is approved to use under any permit issued under regulations approved under this chapter; (v) use of an alternative fuel or raw material by a stationary source that which the source was capable of accommodating before December 21, 1976 (unless such change would be prohibited under any federally enforceable permit condition established after December 21, 1976) or the source is approved to use under any permit issued under regulations approved under this chapter; Nonsubstantive change.
Continues to meet 40 CFR 51.165(a)(1)(C)(5) & (6) and 51.166(b)(2)(iii)(e) & (f)

(vi) an increase in the hours of operation or in the production rate (unless the change is prohibited under any federally enforceable permit condition which was established after December 21, 1976); or (vi) an increase in the hours of operation or in the production rate (unless the change is prohibited under any federally enforceable permit
condition that which was established after December 21, 1976); or Current SIP Approved 3/20/2009. Re submitted 3/11/2011 w/o further change. (vii) any change in ownershi p at a stationary source. No change submitted.

Revision submitted 2/1/2006 Resubmitted 3/11/2011 w/o further change(viii) any change in emissions of a pollutant at a site that occurs under an existing plantwide applicability limit; Meets 40 CFR 51.165(a)(1)(v)(D) and 51.166(b)(2)(iv). (ix) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided th at the project complies with the state implementation plan and other requirements necessary to attain and maintain the national ambient air quality standard during the project and after it is terminated. Meets 40 CFR 51.165(a)(1)(v)(C)(9) and 51.166(b)(2)(iii)(i).

(x) for prevention of significant deterioration review only, the installation or operation of a permanent clean coal technology demonstration proj ect that constitutes re- powering, provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit. This exemption shall appl y on a pollutant-by-pollutant basis; or Meets 40 CFR 51.166(b)(2)(iii)(j).

(xi) for prevention of significant deteriorat ion review only, the reactivation of a clean coalfired electric utility steam generating unit. Meets 40 CFR 51.166(b)(2)(iii)(k).

IV. Revisions to 30 TAC 101.1 As noted earlier, because revisions to footnote 1 in Table I (§116.12(18)(A)) make reference to §101.1(70), we are also evaluating su bmitted revisions to paragraphs in 30 TAC 101.1 that make reference to §101.1(70):

1. At 30 TAC 101.1(70), the definition of “nonatt ainment area” is revised to remove the lists of Texas nonattainment areas in §101.1(70)(A)- (G). The revision retains a reference to 40 CFR 81 and pertinent FR actions for the “offici al” list of nonattainment areas and boundaries. These revisions help ensure that when redesign ations are made to nonattainment areas in Texas as a result of federal action, thes e Texas rules will not be render ed obsolete. Also, for the onehour ozone NAAQS, the designations and classifications in 40 CF R 81 were retained by EPA for purposes of anti-backsliding (see 70 FR 44470, August 3, 2005). Upon determination by EPA that any requirement is no longer compulsory fo r purposes of anti-backsl iding, the requirement will no longer apply. The TCEQ is adding language to this effect in §101.1(70), because the intent of the rule is to prevent backsliding and promote anti-backsliding. Any revision to a SIP
that could interfere with or doe s not comply with the CAA and the SIP because it has the effect of making the approved SIP less stringent may be considered “backsliding” from those requirements and would not be approvable by the EPA pursuant to CAA section 110(l). We recommend approval of these revisions. 2. At 30 TAC 101.1(88), the definition of “re portable quantity,” is revised to delete revoked references to §101.1(70) at 30 TAC 101.1(88)(A)(i)(III)(-a -), (-c-), (-w-), (-pp-), and (-42 zz-). These revisions are consistent with revi sions made to paragra ph (70). We recommend approval of this revision. 3. At 30 TAC 101.1(54), the definition of “mai ntenance area” is revised to remove the
list of maintenance areas within the state. The revision adds a refe rence to 40 CFR 81 and pertinent FR actions, which lists designations fo r air quality planning purposes. This definition does not make reference to §101.1(70), but it is a non-substantive revi sion and we recommend approval of this revision. 4. At 30 TAC 101.1(115), the definition of “ volatile organic compound” is revised to update the reference to the CFR. This definition does not make reference to §101.1(70), but it is
a non-substantive revision and we re commend approval of this revision.

Table 4 provides a comparison of the text in the current SIP to the text in the submitted revision for each definition under review, and our evaluation comments. Previous revisions to 30 TAC 101.1 were approved into the SIP on November 10, 2010 (75 FR 68969).

Table 4. Evaluation Matrix for 30 TAC 101.1

Annotation of Submi tted Revisions to §101.1 Comments §101.1. Definitions. No change to title

Unless specifically defined in the Texas Clean 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. In addition to the terms that are defined by the TCAA, the following terms, when used in the air quality rules in this title, have the following meanings, unless the context clearly
indicates otherwise. No changes submitted for this paragraph.

* * * * * * * (54) Maintenance area--A geographic region of the state previously designated
nonattainment under the Federal Clean Air Act Amendments of 1990 and subsequently redesignated to attainment subject to the requirement to develo p a maintenance plan under 42 United States Code, §7505a. The following are maintenance areas within the

state. (54) Maintenance area--A geographic region of the state previously designated nonattainment under
the Federal Clean Air Act Amendments of 1990 and subsequently redesignated to attainment subject to the requirement to develop a maintenance plan under 42 United States Code, §7505a, as described in 40 Code of Federal Regulations Part 81and in pertinent Federal Register notices. The following are
maintenance areas within the state. Paragraph (54) and sub-paragraphs (54)(A) and (B) are
revised to remove
identification of specific maintenance
areas and refer to the
maintenance areas
identified in 40 CFR

81.

These revisions to 101.1(54) are approvable. (A) Victoria Ozone Maintenanc e Area 60 Federal Register (FR 12453) – Victoria County; (A) [Removed]

(B) Collin County Lead Maintenance Area (64 FR 55421) – Portion of Collin County. Eastside: Starting at the intersection of
South Fifth Street and the fence lin e approximately 1,000 feet south of the Exide property line going north to the intersection of South
Fifth Street and Eubanks Street; Northside: Proceeding west on Eubanks to the Burlington Railroad tracks; Westside: Along the Burlington Railroad tracks to the fence line approximately 1,000 feet south of the Exide property line; Southside: Fence line approximately 1,000 feet south of the Exide property line. (B) Removed]

* * * * * * *43 Annotation of Submi tted Revisions to §101.1 Comments (70) Nonattainment area --A defined region within the state that is designated by
the United States Environmental Protection Agency (EPA) as failing to meet the national ambient air quality standard for a pollutant
for which a standard exists. The EPA will designate the area as nonattainment under the provisions of 42 United States Code, §7407(d). For the offici al list and boundaries of nonattainment areas, see 40 Code of Federal Regulations Pa rt 81 and pertinent Federal Register (FR) notices. The following areas comprise the nonattainment areas
within the state for all national ambient air quality standards (NAAQS). EPA has
indicated that it will revoke the one-hour ozone standard in full, including the associated designations and classifications, on June 15, 2005, which is one year following the effective date of the designations for the eight-hour NAAQS of June 15, 2004. (70) Nonattainment area --A defined region within the state that is designated by the United States Environmental Protection Agen cy (EPA) as failing to meet the national ambient air quality standard (NAAQS or standard) for a pollutant for which a
standard exists. The EPA w ill designate the area as nonattainment under the provisions of 42 United States Code, §7407(d). For the official list and boundaries of nonattainment areas, see 40 Code of Federal Regulations (CFR) Part 81 and pertinent Federal Register (FR) notices. The designations and
classifications for the one-hour ozone national ambient air quality standard in 40 CFR Part 81 were retained for the purpose of anti-backsliding and upon determination by the EPA that any requirement is no longer required for purposes of anti-backsliding, then that requirement no longer applies. The following areas comprise the nonattain ment areas within the
state for all national ambient air quality standards (NAAQS). EPA has indicated that it will revoke the

one

- hour ozone standard in full, including the associated designations a nd classifications, on June 15, 2005, which is one year following the effective date of the designation s for the eight

- hour NAAQS of June 15, 2004. Paragraph (70) and sub-paragraphs (70)(A)-(G) are
revised to remove
identification of Texas
nonattainment areas and instead, refer to
the nonattainment
areas identified in 40 CFR 81. The changes
to this definition are
consistent with the
revisions to footnotes 1, 6, and 7 of Table I
in 30 TAC 116.12(18)(A).

The revisions to 101.1(70) are approvable.

(A) Carbon monoxide (CO). El Paso CO nonattainment area (56 FR 56694)--Classified as a Moderate CO nonatt ainment area with a design value less than or equal to 12.7 parts per million. Portion of El Paso County. Portion of the city limits of El Paso: That portion of th e City of El Paso bounded on the north by Highway 10 from Porfirio Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to the Southern Pacific Railroa d lines, the Southern Pacific Railroad lines from Raynolds Street to Highway 62, Highway 62 from the Southern Pacific Railroad lines to Highway 20, and Highway 20 from Highway 62 to Polo InnRoad. Bounded on the east by Polo Inn Road from Highway 20 to the TexasMexico border. Bounded on the south by the Texas-Mexico border from Polo Inn
Road to Porfirio Diaz Street. Bounded on th e west by Porfirio Diaz Street from the Texas-Mexico border to Highway 10. (A) [Removed] These are subparagraphs (70)(A)- (G). As indicatedabove, these subparagraphs are revised

to remove
identification of specific nonattainment areas and instead, refer
to the nonattainment
areas identified in 40
CFR 81. These
revisions are approvable. (B) Inhalable particulate matter (PM 10). El Paso PM10 nonattainment area (56 FR 56694)--Classified as a Moderate PM10 nonattainment area. Portion of El Paso County that comprises the El Paso city limit boundaries as they existed on November 15, 1990. (B) [Removed]

(C) Lead. No designate d nonattainment areas. (C) [Removed] (D) Nitrogen dioxide. No designated nonattainment areas. (D) [Removed] (E) Ozone (one-hour). (E) [Removed] (i) Houston-Galveston-Brazoria ( HGB) one-hour ozone nonattainment area (56 FR 56694) - Classified as a Seve re-17 ozone nonattainment area. Consists of Brazoria, Chambers, Fort Bend, Galves ton, Harris, Liberty, Montgomery, and
Waller Counties. (i) [Removed]

(ii) El Paso one-hour ozone nonattainment area (56 FR 56694) -
Classified as a Serious ozone nonattainm ent area. Consists of El Paso County. (ii) [Removed] (iii) Beaumont-Port Arthur (BPA) one-hour ozone nonattainment area (69 FR 16483) - Classified as a Serious ozone nonattainment area. Consists of Hardin, Jefferson, and Orange Counties. (iii) [Removed]

(iv) Dallas-Fort Worth one-hour ozone nonattainment area (63 FR 8128) - Classified as a Serious ozone nonattainment area. Consists of Collin, Dallas, Denton, and Tarrant Counties. (iv) [Removed]44 Annotation of Submi tted Revisions to §101.1 Comments (F) Ozone (eight-hour). (F) [Removed] (i) HGB eight-hour ozone nonattainmen t area (69 FR 23936) - Classified
as a Moderate ozone nonattainment area. Consists of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties. (i) [Removed]

(ii) BPA eight-hour ozone nonattainment area (69 FR 23936) - Classified as a Marginal ozone nonattain ment area. Consists of Ha rdin, Jefferson, and Orange
Counties. (ii) [Removed]

(iii) Dallas-Fort Worth eight-hour ozone nonattainment area (69 FR 23936) - Classified as a Mode rate ozone nonattainment ar ea. Consists of Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties. (iii) [Removed]

(iv) San Antonio eight-hour ozone nonattainment area (69 FR 23936) -
Classified under the Federal Clean Air Act, Title I, Pa rt D, Subpart 1 (42 United States Code, §7502), nonattainment defe rred to September 30, 2005, or as extended by EPA. (iv) [Removed]

(G) Sulfur dioxide. No de signated nonattainment areas. (G) [Removed]

* * * * * * * (88) Reportable Quantity (RQ) – Is as follows. No changes submitted

(A) For individual air contam inant compounds and specifically li sted mixtures by name of
Chemical Abstract Servic e (CAS) number, either: (i) the lowest of the quantities:

* * * * * * * (III) listed as follows:

(-a-) acetaldehyde – 1,000pounds, except in the Houston-GalvestonBrazoria (HGB) and Beaumont-Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds (-a-) acetaldehyde – 1,000 pounds, except in the Houston-Galveston- Brazoria (HGB) and Beaumont-Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70) (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds Consistent with
amendments to paragraph (70).

These revisions to 101.1(88) are approvable. * * * * * * * (-c-) butenes (any isomer, except 1,3 butadiene) – 5,000 pounds except
in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds (-c-) butenes (any isomer, except 1,3 butadiene) – 5,000 pounds except in the HGB and
BPA ozone nonattainment areas as defined in paragraph (70) (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds

* * * * * * * (-w-) ethylene – 5,000 pounds except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds (-w-) ethylene – 5,000 pounds except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds

* * * * * * *45 Annotation of Submi tted Revisions to §101.1 Comments

Current SIP Approved 11/10/2010 Under Review
Revision submitted 3/11/2011

(-pp-) propylene – 5,000 pounds except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds (-pp-) propylene – 5,000 pounds except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds Consistent with
amendments to paragraph (70).

These revisions to 101.1(88) are approvable. * * * * * * * (-zz-) toluene – 1,000 pounds except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds (-zz-) toluene – 1,000 pounds except
in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds

* * * * * * * Current SIP Approved 11/10/2010 Revision submitted 5/26/2011 (115) Volatile organic compound-As defined in 40 Code of Federal Regulations §51.100(s), except §51.100(s)(2) - (4), as amended on November 29, 2004, 69 FR
69290. (115) Volatile organic compound-As defined in 40 Code of Federal Regulations §51.100(s), except §51.100(s)(2) - (4), as amended on January 21, 2009 (74 FR 3441) November 29, 2004, 69 FR 69290

. Meets the definition of volatile organic compound at 40 CFR 51.100(s). This revision is approvable.

V. EPA’s Recommendations
We reviewed the Texas revisions to 30 TAC 101.1 and 30 TAC 116.12 for compliance with section 110(a)(2)(C) and 110(l) of the Act and EPA’s rules at 40 CFR 51 and 81. The
revisions to 30 TAC 101.1 and 30 TAC 116.12 discussed above are severable from their March 11, 2011 submittals, meet the federal requir ements regarding anti-backsliding under South Coast and satisfy the requirements for SIP approval. We recommend that EPA propose to approve the following Texas SIP revisions:

1. 30 TAC 101.1(54), non-substantive changes to the definition of “maintenance area” 2. 30 TAC 101.1(70), substantive changes to the definition of “ nonattainment area” 3. 30 TAC 101.1(88), non-substantive changes to th e definition of “reportable quantity” at 30 TAC 101.1(88)(A)(i)(II I)(-a-), (-c-), (-w-), (-pp-), and (-zz-) 4. 30 TAC 101.1(115), non-substantiv e changes to the definiti on of “volatile organic compound” 5. 30 TAC 116.12, non-substantive changes to the title and intro ductory paragraph

6. 30 TAC 116.12(14), substantive change adding the definition of “Federally Regulated NSR pollutant”

7. 30 TAC 116.12(17), substantive changes to the definition of “Major stationary

source”

8. 30 TAC 116.12(18), substantive changes to the definition of “Major modification”

9. 30 TAC 116.12(18)(A), substantive and non- substantive changes to Table I and footnotes 1, 2, 3, 6, and 7 to Table I

10. 30 TAC 116.12(18)(B), non-substantive changes to (B) and subsections (iii), (v), (vi), and substantive change s adding (viii) – (xi)