TECHNICAL SUPPORT DOCUMENT

Revisions to the Texas State Implementation Plan

30 TAC Chapter 101 – General Air Quality Rules

Subchapter H – Emissions Banking and Trading

Division 3 – Mass Emissions Cap and Trade Program

Division 6 – Highly Reactive Volatile Organic Compound Emissions Cap and 

Trade Program

Submitted as part of the following:

Rule Project No: 2009-019-101-EN on April 6, 2010

Rule Project No: 2009-006-101-EN on April 6, 2010

August 20, 2013

FOR FURTHER INFORMATION CONTACT: Ms. Adina Wiley, United States Environmental 

Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue, Dallas, Texas 75202-

2733, (214) 665-2115.
Subject: Revisions to the Texas State Implementation Plan; 30 TAC Chapter 101 –

General Air Quality Rules; Subchapter H – Emissions Banking and Trading; 

Division 3 – MECT and Division 6 - HECT

Contents:

I. Executive Summary

II. Technical Evaluation of April 6, 2010 SIP Submittals

A. Analysis of the MECT Revisions

B. Analysis of the HECT Revisions

III. Conclusion
I. Executive Summary

What actions are evaluated in this Technical Support Document?

This technical support document (TSD) reviews portions of two separate revisions to the Texas 

State Implementation Plan (SIP) Emissions Banking and Trading Programs at 30 TAC Chapter 

101, Subchapter H, Divisions 3 and 6, submitted on April 6, 2010. The revisions to the MECT 

and HECT are being evaluated as necessary components for the Houston-Galveston-Brazoria

(HGB) 8-hour ozone attainment demonstration for the 1997 ozone NAAQS. This review will 

determine if the revisions to the MECT and HECT programs are consistent with the requirements 

of the Clean Air Act and EPA’s policy and guidance and supportive of the HGB area’s 

attainment demonstration.

Rule Project Number 2009-019-101-EN

 On March 10, 2010, the Texas Commission on Environmental Quality (TCEQ) adopted 

revisions to the MECT Program at 30 TAC 101.350, 101.351, and 101.353. These revisions 

amend the SIP-approved trading program to protect the integrity of the NOX cap in HGB. 

Specifically, the TCEQ adopted revisions to 30 TAC 101.350 to revise the definition of 

“uncontrolled design capacity” to “uncontrolled design capacity to emit” to allow more 

flexibility for stationary diesel engines to determine how to comply with NOX emission 

requirements in Chapter 117 – either through participation in the MECT or through 

purchasing banked emission credits. The adopted revisions also revise the applicability of the 

MECT program at 30 TAC 101.351 to require subject sites to first determine the status as 

major or minor source under 30 TAC Chapter 117. If the source is major then it must 

participate in the MECT. If the source is minor then it can choose to participate under the 

MECT or meet reduction requirements through the purchase and retirement of banked 

emission credits. Finally, the adopted revisions modify the allocation of allowance 

requirements at 30 TAC 101.353 to discontinue the acceptance of late Level of Activity 

certification forms that could have inflated the cap. The TCEQ also adopted non-substantive 

revisions throughout to correct typographical errors and Texas Register formatting 

requirements.

 The Chairman of the TCEQ, Mr. Bryan W. Shaw, Ph.D., submitted these provisions as a SIP 

revision in a letter dated April 6, 2010, for rule project number 2009-019-101-EN.

Rule Project Number 2009-006-101-EN

 On March 10, 2010, the TCEQ also adopted revisions to HECT Program at 30 TAC Chapter 

101, Subchapter H, Division 6 at 30 TAC 101.390 – 101.394, 101.396 and 101.399 –

101.401. These revisions reduce the HRVOC cap in Harris County by 25%, a step taken as a 

result of photochemical modeling in support of the HGB 8-hour ozone attainment 

demonstration. The revisions also change the allocation methodology to promote equitable 

distribution of allowances as a result of comment and add necessary definitions to implement 

the allocation methodology changes. The TCEQ also adopted non-substantive revisions 

throughout to correct typographical errors and Texas Register formatting requirements.

 The Chairman of the TCEQ, Mr. Bryan W. Shaw, Ph.D., submitted these provisions as a SIP 

revision in a letter dated April 6, 2010, for rule project number 2009-019-101-EN.
 The March 10, 2010, adoption of Rule Project Number 2009-006-101-EN also included 

adoption of revisions to the General Air Quality Definitions at 30 TAC 101.1 for the 

definition of “reportable quantity” and “volatile organic compound”. EPA is reviewing these 

definition changes separately from the HECT revisions. See Appendix C of the TSD for the 

evaluation.

Note that the TCEQ also submitted revisions to the HGB attainment demonstration for the 1997 

8-hour ozone standard. The MECT and HECT are necessary components of the HGB attainment 

demonstration and will be evaluated as to whether the revisions to the SIP-approved programs 

will continue to advance the HGB area to attainment of the standard.

II. Technical Evaluation of the April 6, 2010 SIP Submittals

The following tables provides a line by line comparison of the SIP-approved provisions for the 

MECT and HECT programs and the amendments adopted and submitted as a revision to the 

Texas SIP. EPA’s analysis of the approvability of the revision is provided in the right hand 

column for each amendment. 
A. Analysis of the Revisions to the MECT Submitted on April 6, 2010 as part of Rule Project Number 2010-019-101-EN.

Table 1: Analysis of the Amendments to 30 TAC 101.350 – DEFINITIONS

30 TAC 101.350

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 

2007.

Revisions to 30 TAC 101.350

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010.

Analysis of Revisions to 30 TAC 101.350

The following words and terms, when used in this 

division, shall have the following meanings, unless 

the context clearly indicates otherwise.

The following words and terms, when used in this 

division (relating to Mass Emissions Cap and Trade 

Program), will shall have the following meanings, 

unless the context clearly indicates otherwise.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and to 

meet current Texas Register style and format 

requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

1. Adjustment period--A period of time, 

beginning on the first day of operation of a 

facility and ending no more than 180 

consecutive days later, used to make 

corrections and adjustments to achieve normal 

technical operating characteristics of the 

facility.

No change No changes made to the SIP-approved language. 

2. Allowance--The authorization to emit one ton 

of nitrogen oxides, expressed in tenths of a ton, 

during a control period.

No change No changes made to the SIP-approved language. 

3. Authorized account representative--The 

responsible person who is authorized, in 

writing, to transfer and otherwise manage 

allowances.

No change No changes made to the SIP-approved language. 

4. Banked allowance--An allowance which is 

not used to reconcile emissions in the 

designated year of allocation, but which is 

carried forward for up to one year and noted in 

the compliance or broker account as "banked."

4. Banked allowance--An allowance that which

is not used to reconcile emissions in the 

designated year of allocation, but that which is 

carried forward for up to one year and noted in 

the compliance or broker account as "banked."

Non-substantive revisions to the SIP-approved 

language made to meet current Texas Register style 

and format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.
Table 1: Analysis of the Amendments to 30 TAC 101.350 – DEFINITIONS

30 TAC 101.350

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 

2007.

Revisions to 30 TAC 101.350

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010.

Analysis of Revisions to 30 TAC 101.350

5. Broker--A person not required to participate in 

the requirements of this division who opens an 

account under this division for the purpose of 

banking and trading allowances.

5. Broker--A person not required to participate in 

the requirements of this division (relating to 

Mass Emissions Cap and Trade Program) who 

opens an account under this division for the 

purpose of banking and trading allowances.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

6. Broker account--The account where 

allowances held by a broker are recorded. 

Allowances held in a broker account may not 

be used to satisfy compliance requirements for 

this division.

6. Broker account--The account where 

allowances held by a broker are recorded. 

Allowances held in a broker account may not 

be used to satisfy compliance requirements for 

this division (relating to Mass Emissions Cap 

and Trade Program).

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

7. Compliance account--The account where 

allowances held by a facility or multiple 

facilities at a single site are recorded for the 

purposes of meeting the requirements of this 

division.

7. Compliance account--The account where 

allowances held by a facility or multiple 

facilities at a single site are recorded for the 

purposes of meeting the requirements of this 

division (relating to Mass Emissions Cap and 

Trade Program).

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

8. Control period--The 12-month period 

beginning January 1 and ending December 31 

of each year. The initial control period begins 

January 1, 2002.

No change No changes made to the SIP-approved language. 

9. Existing Facility--A new or modified facility 

that either has submitted an application for a 

permit under Chapter 116 of this title (relating 

to Control of Air Pollution by Permits for New 

Construction or Modification) which the 

executive director has determined to be 

administratively complete before January 2, 

2001, or has qualified for a permit by rule 

under Chapter 106 of this title (relating to 

9. Existing Facility--A new or modified facility 

that either has submitted an application for a 

permit under Chapter 116 of this title (relating 

to Control of Air Pollution by Permits for New 

Construction or Modification) that which the 

executive director has determined to be

administratively complete before January 2, 

2001, or has qualified for a permit by rule 

under Chapter 106 of this title (relating to 

Non-substantive revisions to the SIP-approved 

language made to meet current Texas Register style 

and format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.
Table 1: Analysis of the Amendments to 30 TAC 101.350 – DEFINITIONS

30 TAC 101.350

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 

2007.

Revisions to 30 TAC 101.350

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010.

Analysis of Revisions to 30 TAC 101.350

Permits by Rule) and commenced construction 

before January 2, 2001.

Permits by Rule) and commenced construction 

before January 2, 2001.

10. Houston-Galveston-Brazoria (HGB) ozone 

nonattainment area--As defined in §101.1 of 

this title (relating to Definitions).

No change No changes made to the SIP-approved language. 

11. Level of activity--The amount of activity at a 

facility measured in terms of production, fuel 

use, raw materials input, or other similar units.

No change No changes made to the SIP-approved language. 

12. Person--For the purpose of issuance of 

allowances under this division, a person 

includes an individual, a partnership of two or 

more persons having a joint or common 

interest, a mutual or cooperative association, or 

a corporation.

12. Person--For the purpose of issuance of 

allowances under this division (relating to 

Mass Emissions Cap and Trade Program), a 

person includes an individual, a partnership of 

two or more persons having a joint or common 

interest, a mutual or cooperative association, or 

a corporation.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

13. Site--As defined in §122.10 of this title 

(relating to General Definitions).

No change No changes made to the SIP-approved language. 

14. Uncontrolled design capacity--The maximum 

capacity of a facility to emit a pollutant without 

regard to any enforceable or physical 

operational limitations including air pollution 

control equipment.

14. Uncontrolled design capacity to emit – The 

maximum capacity of a facility to emit 

nitrogen oxides without consideration for 

post-combustion pollution control 

equipment, enforceable limitations, or 

operational limitations. The owner or 

operator of a stationary diesel engine may 

use the lower of 876 hours or a federally 

enforceable limitation on total hours of 

operation to calculate uncontrolled design 

capacity to emit if the engine would 

otherwise be exempt from Chapter 117, 

Subchapter D, Division 1 of this title 

(relating to Houston-Galveston-Brazoria 

Ozone Nonattainment Area Minor Sources) 

under § 117.2003(a)(2)(I) of this title 

(relating to Exemptions) except that the 

This substantive revision to the MECT definitions 

is approvable. 

Under this definition change, along with the 

applicability amendments discussed in Table 2 

below, a source will first determine whether it is a 

major source as defined at 30 TAC 117.10. If the 

source is minor, it must determine whether it is 

subject to 30 TAC 117.2010. If the source is minor, 

and subject to 30 TAC 117.2010 it then calculates 

its uncontrolled design capacity to emit using this 

new definition. If the source has an uncontrolled 

design capacity to emit greater than 10 tpy of NOX

it is subject to the MECT. Once a minor source 

chooses to participate in the MECT, it will be 

subject to MECT requirements for the life of the 

source until it is permanently shutdown per the new 
Table 1: Analysis of the Amendments to 30 TAC 101.350 – DEFINITIONS

30 TAC 101.350

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 

2007.

Revisions to 30 TAC 101.350

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010.

Analysis of Revisions to 30 TAC 101.350

engine does not meet the emission standard 

requirements of § 117.2003(a)(2)(I)(ii) of this 

title.

Uncontrolled design capacity--The maximum 

capacity of a facility to emit a pollutant without 

regard to any enforceable or physical 

operational limitations including air pollution 

control equipment.

provisions at 30 TAC 101.351(c).

This definition is a substantive change from the 

previous SIP-approved definition of “uncontrolled 

design capacity”. The new definition of 

“uncontrolled design capacity to emit” calculates

the maximum capacity of a facility to emit NOX

without consideration for post-combustion control 

equipment, enforceable limitations, or operational 

limitations. NOX control equipment that cannot be 

removed without preventing the facility from 

operating (such as low NOX burners) will be 

considered when calculating the uncontrolled 

design capacity to emit. 

This substantive definition change will not 

undermine the functionality of the SIP-approved 

program. The MECT is a key component of the 

HGB attainment demonstration. TCEQ has 

demonstrated through the attainment demonstration 

modeling that the MECT program as revised will 

continue to assist the HGB area in reaching its 

emission reduction goals.

Table 2: Analysis of the Amendments to 30 TAC 101.351 – Applicability

30 TAC 101.351

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 2007.

Revisions to 30 TAC 101.351

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.351

a. This division applies to all facilities which emit 

nitrogen oxides (NOx) in the HoustonGalveston- Brazoria ozone nonattainment area, 

as defined in §101.1 of this title (relating to 

Definitions) which are subject to the emission 

a. This division applies to sites all facilities which 

emit nitrogen oxides (NOx) in the HoustonGalveston- Brazoria ozone nonattainment area 

that, as defined in §101.1 of this title (relating 

to Definitions) which are subject to the 

The adopted amendments to the MECT 

applicability at 30 TAC 101.351(a), (a)(1), and 

(a)(2) are approvable. 

This amendment is a substantive change from the 
Table 2: Analysis of the Amendments to 30 TAC 101.351 – Applicability

30 TAC 101.351

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 2007.

Revisions to 30 TAC 101.351

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.351

specifications under §117.310, 117.1210, or 

117.2010 of this title (relating to Emission 

Specifications for Attainment Demonstration 

and Emission Specifications) and which are:

emission specifications under §117.310, 

117.1210, or 117.2010 of this title (relating to 

Emission Specifications for Attainment 

Demonstration and Emission Specifications) 

and which are:

SIP-approved applicability provisions. Under the 

revised applicability requirements, a site must first 

determine if it is considered a major source under 

Chapter 117 before determining applicability under 

the MECT. 

 If the site is a major source it will determine 

applicability pursuant to 30 TAC 

101.351(a)(1). Major sources applicable to the 

MECT will be either 1) major sites in the HGB 

nonattainment area that are classified as either 

industrial, commercial and institutional 

sources under Chapter 117, Subchapter B, 

Division 3, or 2) utility electric generation 

sources under Chapter 117, Subchapter C, 

Division 3.

 If the site is not a major source, it will 

determine applicability pursuant to 30 TAC 

101.351(a)(2) by calculating the uncontrolled 

design capacity to emit. A minor source such 

as boilers and process heaters, stationary, 

reciprocating internal combustion engines and 

stationary gas turbines regulated under 

Chapter 117, Subchapter D, Division 1 that 

has an uncontrolled design capacity to emit ten 

tons or more per year of NOX will be subject 

to the MECT. 

These substantive revisions will not undermine the 

functionality of the SIP-approved program. The 

MECT is a key component of the HGB attainment 

demonstration. TCEQ has demonstrated through 

the attainment demonstration modeling that the 

MECT program as revised will continue to assist 

the HGB area in reaching its emission reduction 

goals.

1. located at a site which meets the definition 

of major source, as defined in §117.10 of 

this title (relating to Definitions); or

1. meet located at a site which meets the 

definition of a major source of nitrogen 

oxides (NOX), as defined in §117.10 of 

this title (relating to Definitions), with 

facilities subject to § 117.310 or § 

117.1210 of this title (relating to Emission 

Specifications for Attainment 

Demonstration); or

2. located at a site where they collectively 

have an uncontrolled design capacity to 

emit ten tons or more per year of NOx.

2. do not meet the definition of a major 

source of NOX,as defined in § 117.10 of 

this title, and have facilities subject to § 

117.2010 of this title (relating to Emission 

Specifications) with a collective 

uncontrolled design capacity to emit from 

these facilities of located at a site where 

they collectively have an uncontrolled 

design capacity to emit ten tons or more 

per year of NOx.
Table 2: Analysis of the Amendments to 30 TAC 101.351 – Applicability

30 TAC 101.351

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 2007.

Revisions to 30 TAC 101.351

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.351

b. A site which met the definition of major source 

as of December 31, 2000 shall always be 

classified as a major source for purposes of this 

chapter. A site which did not meet the 

definition of major source (i.e., was a minor 

source, or did not yet exist) on December 31, 

2000, but which at any time after December 

31, 2000 becomes a major source, shall from 

that time forward always be classified as a 

major source for purposes of this chapter.

b. A site that which met the definition of major 

source as of December 31, 2000 must shall

always be classified as a major source for 

purposes of this chapter. A site that which did 

not meet the definition of major source (i.e., 

was a minor source, or did not yet exist) on 

December 31, 2000, but that which at any time 

after December 31, 2000 becomes a major 

source, must shall from that time forward 

always be classified as a major source for 

purposes of this chapter.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule. These 

non-substantive revisions do not change the SIPapproved provision that specifies that once a site is 

major for purposes of MECT compliance the site 

will always be considered a major source under the 

MECT.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

No comparable provision in the SIP-approved 

MECT program.

c. Once a site becomes subject to the 

requirements of this division, the site will 

remain subject to this division until the site has 

been permanently shutdown.

This substantive revision is approvable. This new 

provision requires that once a site becomes subject 

to the MECT, it will remain subject to the MECT 

until it has permanently shutdown. 

This provision supports the functionality of the 

MECT. Under this provision a source will remain 

subject to the MECT, despite changes in emission 

rates or other changes that could shift production 

outside of the capped area, and ultimately could be 

used to redefine a source’s classification as “major” 

under Chapter 117. This requirement to stay subject 

until permanently shutdown will provide a 

predictable pool of participating sites and 

allowances.

Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

30 TAC 101.353

SIP-Approved by EPA July 16, 2009 (74 FR 

34503) as adopted by the TCEQ on July 25, 2007.

Revisions to 30 TAC 101.353

Revisions adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.353

a. Allowances will be deposited into compliance 

accounts according to the following equation 

No change No changes made to the SIP-approved language. 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

except as provided in subsection (b) or (h) of 

this section.

Figure: 30 TAC § 101.353(a)

  























  

2000

LAHA* EFFINAL A B X B

Where:

(1) A = number of allowances rounded to tenths 

of tons;

(2) B = the facility’s baseline emission rate and 

is calculated as follows:

(A) For facilities in operation prior to 

January 1, 1997:

     

32000

LA9 7* EF9 7 LA9 8* EF9 8 LA9 9* EF9 9 B 



Where:

LA97 = the facility’s level of activity, as 

certified by the executive director for 1997;

LA98 = the facility’s level of activity, as 

certified by the executive director for 1998;

LA99 = the facility’s level of activity, as 

certified by the executive director for 1999;

EF97 = the facility’s emission factor for 

1997 or the emission specifications under §§ 

117.310, 117.1210, and 117.2010 of this title 

(relating to Emission Specifications for 

Attainment Demonstration; and Emission 

Specifications) (ESAD) whichever is higher, 

in pounds per unit of activity, (not to exceed 

any applicable federal or state regulation, 

rule, or permit limit), as certified by the 

executive director;

EF98 = the facility’s emission factor for 

1998 or the emission specifications under 

No change No changes made to the SIP-approved language. 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

ESAD, whichever is higher, in pounds per 

unit of activity (not to exceed any applicable 

federal or state regulation, rule, or permit 

limit) as certified by the executive director;

EF99 = the facility’s emission factor for 

1999 or the emission specifications under 

ESAD, whichever is higher, in pounds per 

unit of activity (not to exceed any applicable 

federal or state regulation, rule, or permit 

limit) as certified by the executive director;

(B) For existing facilities not in operation 

prior to January 1, 1997 and that have been 

in operation less than five complete 

consecutive calendar years beginning after 

the end of the adjustment period and have 

not established two years of baseline data:

2000

LAALLOWABLE*EFALLOWABLE B 

Where:

LAAllowable = The level of activity 

authorized by the executive director until 

such time two consecutive calendar years of 

actual level of activity data is available;

EFAllowable = The emission factor or the 

emission specifications under ESAD, 

whichever is higher, authorized by the 

executive director until such time two 

consecutive calendar years of actual 

emission data is available.

(C) For existing facilities not in operation 

prior to January 1, 1997 and that have 

established two consecutive calendar years 

of baseline data out of the first five years of 

operation following the end of the 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

adjustment period:

   

22000

1

* 1  2* 2



LAYEAR EFYEAR LAYEAR EFYEAR B

Where:

LAYear-1 = the facility’s level of activity, as 

certified by the executive director, for the 

first of any two consecutive years within the 

first five years of operation;

LAYear-2 = the facility’s level of activity, as 

certified by the executive director, for the 

second of any two consecutive years within 

the first five years of operation;

EFYear-1 = the facility’s emission factor or 

the emission specifications under ESAD, 

whichever is higher, in pounds per unit of 

activity, (not to exceed any applicable 

federal or state regulation, rule, or permit 

limit), as certified by the executive director, 

for the first of any two consecutive years 

within the first five years of operation;

EFYear-2 = the facility’s emission factor or 

the emission specifications under ESAD, 

whichever is higher, in pounds per unit of 

activity, (not to exceed any applicable 

federal or state regulation, rule, or permit 

limit), as certified by the executive director, 

for the second of any two consecutive years 

within the first five years of operation;

(3) X = reduction factor, where:

(A) For all boilers, auxiliary steam boilers, 

and stationary gas turbines (including duct 

burners used in turbine exhaust ducts) within 

an electric power generating system, as 

defined in §117.10(14)(A) of this title 

(relating to Definitions), located in the 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

Houston-Galveston-Brazoria nonattainment 

area:

(i) for January 1, 2002 through March 31, 

2003, X = 0.00;

(ii) for April 1, 2003 through March 31, 

2004, X = 0.50;

(iii) on or after April 1, 2004, X = 1.00;

(B) For facilities subject to the emission 

specifications under § 117.310(a)(1)(A) and 

(B), (2)(A), (5), (8)(A)(i), (8)(B), (9)(A)(ii), 

(10), or (11) of this title:

(i) for January 1, 2002 through March 31, 

2004, X = 0.00;

(ii) for April 1, 2004 through March 31, 

2005, X = 0.47;

(iii) for April 1, 2005 through March 31, 

2006, X = 0.80;

(iv) for April 1, 2006 through March 31, 

2007, X = 0.93;

(v) on and after April 1, 2007, X = 1.00;

(C) For all other facilities:

(i) for January 1, 2002 through March 31, 

2004, X = 0.00;

(ii) for April 1, 2004 through March 31, 

2005, X = 0.389;

(iii) for April 1, 2005 through March 31, 

2006, X = 0.667;

(iv) for April 1, 2006 through March 31, 

2007, X = 0.778;

(v) on and after April 1, 2007, X = 1.00;

(D) Alternatively, facilities subject to the 

reduction factors under subparagraph B of 

this paragraph may elect to comply with the 

following:

(i) for January 1, 2002 through March 31, 

2005, X=0.00; 

(ii) on and after April 1, 2005, X=1.00.

(E) Election to comply with the alternative 

reduction schedule under subparagraph (D)
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

of this paragraph shall be made by letter to 

the executive director no later than April 1, 

2003.

(F) For calendar years which include two 

different reduction factors, the reduction 

factor shall be adjusted using the appropriate 

ratio to reflect the number of months covered 

by each reduction factor.

(4) LAHA = historical average level of activity, 

where:

(A) For facilities in operation on or before 

January 1, 1997, the average level of 

activity, as certified by the executive 

director, for 1997, 1998, and 1999; or 

(B) For existing facilities which began 

operation after January 1, 1997, LAHA is:

(i) the level of activity authorized by the 

executive director until such time two 

consecutive calendar years of actual level 

of activity data is available, beginning 

after the end of the adjustment period; or

(ii) when two complete consecutive 

calender years of actual level of activity 

data is available, beginning after the end of 

the adjustment period, the level of activity 

becomes the average of the facility’s 

actual level of activity over those two 

consecutive calendar years of actual level 

of activity data.

(5) EFfinal = emission factor, as listed in §§ 

117.310, 117.1210, or 117.2010 of this title.

(6) For facilities using alternative emission 

specifications as allowed in § 

117.310(a)(17) or § 117.2010(c)(6) of this 

title, the level of activity for any formula 

will be the lowest of the level of activity as 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

calculated in variables (2)(A), (2)(B), or the 

level of activity limited by an enforceable 

limit or commitment necessary to qualify 

for an alternative emission specification in § 

117.310(a)(17) or § 117.2010(c)(6) of this 

title.

b. For a new and/or modified facility that has 

submitted, under Chapter 116 of this title 

(relating to Control of Air Pollution by 

Permit for New Construction of 

Modification), an application which the 

executive director has not determined to be 

administratively complete before January 2, 

2001, or has qualified for a permit by rule 

under Chapter 106 of this title (relating to 

Permits by Rule) and has not commenced 

construction before January 2, 2001, 

allowances for each control period or the 

annual allocation rights shall be acquired 

from facilities already participating under 

this division, or in accordance with 

§101.356(g) of this title (relating to 

Allowance Banking and Trading).

b. The owner or operator of the following 

facilities shall acquire allowances for each 

control period or the annual allocation rights 

from facilities already participating under this 

division in accordance with § 101.356 of this 

title (relating to Allowance Banking and 

Trading):

1. New and/or modified facilities that have 

submitted, under Chapter 116 of this title 

(relating to Control of Air Pollution by 

Permits for new Construction or 

Modification), an application that the 

executive director has not determined to 

be administratively complete before 

January 2, 2001;

2. New and/or modified facilities that 

qualified for a permit by rule under 

Chapter 106 of this title (relating to 

Permits by Rule) and have not 

commenced construction before January 2, 

2001;

3. Facilities in operation prior to January 1, 

1997, located at a site defined on or before 

December 31, 2000, as a major source of 

nitrogen oxides (NOX), as defined in § 

117.10 of this title (relating to 

Definitions), that have not submitted an 

ECT-3 Form, Level of Activity 

Certification, in accordance with § 

101.360(a)(1) of this title (relating to 

Level of Activity Certification) by March 

30, 2010;

4. New and/or modified facilities located at a 

New 101.353(b)(1) and (b)(2) restate the current 

SIP-approved language and do not result in a 

change from the current SIP. These revisions are 

approvable.

The new provisions at 101.353(b)(3), (b)(4) and 

(b)(5) substantively revise the SIP-approved 

program and are approvable. 

These new provisions prevent a specified major 

source from submitting a late level of activity form 

and receiving allowances from TCEQ. Instead, 

these identified major sources will need to acquire 

allowances or annual allocation rights from other 

existing MECT sources. This will prevent inflation 

of the overall MECT cap and protect the integrity 

of the HGB attainment demonstration.

EPA submitted a comment letter on November 9, 

2009 requesting clarification of the proposed 

revisions to 30 TAC 101.353(b) and why the 

proposed revisions do not require minor sources 

that submit late ECT-3 forms to obtain allowances 

from existing sources. We further noted that this 

exemption for minor sources could increase the 

overall cap and jeopardize the attainment 

demonstration modeling for the HGB area.

In the response to comments for the MECT 

rulemaking, the TCEQ acknowledged that the 

acceptance of late ECT-3 forms from minor sources 

could increase the NOX cap. However, TCEQ 

provided a demonstration at 35 TexReg 2577-2578 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

site defined on or before December 31, 

2000, as a major source of NOX, as 

defined in § 117.10 of this title, that 

submitted a permit application that was 

determined administratively complete 

before January 2, 2001, but have not 

submitted an ECT-3 Form in accordance 

with § 101.360(a)(2) of this title by March 

30, 2010; and

5. New and/or modified facilities located at a 

site defined on or before December 31, 

2000, as a major source of NOX, as 

defined in § 117.10 of this title, that 

qualified for a permit by rule and 

commenced construction before January 2, 

2001, but have not submitted an ECT-3

Form in accordance with § 101.360(a)(2) 

of this title by March 30, 2010.

For a new and/or modified facility that has 

submitted, under Chapter 116 of this title (relating 

to Control of Air Pollution by Permit for New 

Construction of Modification), an application 

which the executive director has not determined to 

be administratively complete before January 2, 

2001, or has qualified for a permit by rule under 

Chapter 106 of this title (relating to Permits by 

Rule) and has not commenced construction before 

January 2, 2001, allowances for each control 

period or the annual allocation rights shall be 

acquired from facilities already participating 

under this division, or in accordance with 

§101.356(g) of this title (relating to Allowance 

Banking and Trading).

that the attainment demonstration modeling is not 

affected by this practice. Further, the TCEQ 

provided historic data on the acceptance of late 

ECT-3 forms from minor sources since 2001, 

which totaled to 0.13 tpd allocated to all 13 sites 

that submitted late. Compared to the 2018 modeled 

baseline inventories of 42.04 tpd for area sources 

and 154.36 tpd for point sources, the minor sources 

with late ECT-3 forms represent a trivial amount of 

the total cap. 

c. If actual emissions of nitrogen oxides during 

a control period exceed the amount of 

allowances held in a compliance account on 

March 1 following the control period, 

allowances for the next control period will 

c. If actual emissions of NOX nitrogen oxides

during a control period exceed the amount of 

allowances held in a compliance account on 

March 1 following the control period, 

allowances for the next control period will be 

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIP-
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

be reduced by an amount equal to the 

emissions exceeding the allowances in the 

compliance account plus an additional 10%. 

This does not preclude additional 

enforcement action by the executive director.

reduced by an amount equal to the emissions 

exceeding the allowances in the compliance 

account plus an additional 10%. This does not 

preclude additional enforcement action by the 

executive director.

approved program. Recommend approval of the 

revisions into the Texas SIP.

d. Allowances will be allocated by the 

executive director, who will deposit 

allowances into each compliance account:

No change No changes made to the SIP-approved language. 

1. initially, by January 1, 2002; and No change No changes made to the SIP-approved language. 

2. subsequently, by January 1 of each 

following year.

No change No changes made to the SIP-approved language. 

e. The annual deposit for any control period 

may be adjusted by the executive director to 

reflect new or existing state implementation 

plan requirements.

No change No changes made to the SIP-approved language. 

f. Allowances may be added or deducted by 

the executive director from compliance 

accounts following the review of reports 

required under §101.359 of this title (relating 

to Reporting).

No change No changes made to the SIP-approved language. 

g. The owner or operator of a facility may, due 

to extenuating circumstances, request a 

baseline period more representative of 

normal operation as determined by the 

executive director. Applications for 

extenuating circumstances must be submitted 

by the owner or operator of the facility to the 

executive director:

No change No changes made to the SIP-approved language. 

1. no later than June 30, 2001 to request an 

alternative three consecutive calendar 

year period for facilities in operation 

prior to January 1, 1997;

No change No changes made to the SIP-approved language. 

2. no later than 90 days after completion of 

the baseline period to request up to two 

additional calendar years to establish a 

baseline period for facilities whose 

baseline as described by variable (2)(C) 

listed in the figure contained in 

subsection (a) of this section is not 

No change No changes made to the SIP-approved language. 
Table 3: Analysis of the Amendments to 30 TAC 101.353 – Allocation of Allowances

complete by June 30, 2001; or

3. at any time as authorized by the 

executive director.

No change No changes made to the SIP-approved language. 

h. Allowances calculated under subsection (a) 

of this section will continue to be based on 

historical activity levels, despite subsequent 

reductions in activity levels. If allowances 

are being allocated based on allowables and 

the facility does not achieve two complete 

consecutive calendar years of actual level of 

activity data, then allowances will not 

continue to be allocated if the facility ceases 

operation or is not built.

No change No changes made to the SIP-approved language. 
B. Analysis of the Revisions to the HECT Submitted on April 6, 2010 as part of Rule Project Number 2010-006-101-EN.

Table 4: Analysis of the Amendments to 30 TAC 101.390 - Definitions

30 TAC 101.390

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.390

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.390

The following words and terms, when used in this 

division, have the following meanings, unless the 

context clearly indicates otherwise.

No change No changes made to the SIP-approved language. 

1. Allowance - The authorization to emit one ton 

of highly-reactive volatile organic compounds, 

expressed in tenths of a ton, during a control 

period.

No change No changes made to the SIP-approved language. 

2. Authorized account representative - The 

responsible person who is authorized in writing 

to transfer and otherwise manage allowances 

for the site.

No change No changes made to the SIP-approved language. 

3. Banked allowance - An allowance that is not 

used to reconcile emissions in the designated 

year of allocation, but is carried forward for up 

to one year and noted as banked in the 

compliance account or broker account.

No change No changes made to the SIP-approved language. 

No comparable provision in SIP 4. Baseline emissions period – The two 

consecutive calendar- year control periods from 

2006 - 2009 with the highest monitored average 

actual HRVOC emissions for the purpose of 

establishing baseline emissions used for the 

allocation of allowances, except as allowed 

under § 101.394(a)(1 )(C) and (D) of this title 

(relating to Allocation of Allowances).

This substantive revision to add a new definition is 

approvable. The new definition of “baseline 

emissions period” is necessary to implement the 

revisions to the allocation methodology in 30 TAC 

101.394.

This substantive definition change will not 

undermine the functionality of the SIP-approved 

program. The HECT is a key component of the 

HGB attainment demonstration. TCEQ has 

demonstrated through the attainment demonstration 

modeling that the HECT program as revised will 

continue to assist the HGB area in reaching its 

emission reduction goals.

4. Broker - A person that is not required to 

participate in the requirements of this division, 

5. Broker - A person that is not required to 

participate in the requirements of this division, 

Non-substantive renumbering of existing SIPapproved language.
Table 4: Analysis of the Amendments to 30 TAC 101.390 - Definitions

30 TAC 101.390

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.390

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.390

but that opens an account under this division 

for the purpose of banking and trading 

allowances.

but that opens an account under this division for 

the purpose of banking and trading allowances.

5. Broker account - The account where 

allowances held by a broker are recorded. 

Allowances held in a broker account may not 

be used to satisfy compliance requirements for 

this division.

6. Broker account - The account where 

allowances held by a broker are recorded. 

Allowances held in a broker account may not be 

used to satisfy compliance requirements for this 

division.

Non-substantive renumbering of existing SIPapproved language.

6. Compliance account - The account in which 

allowances held by a site are recorded for the 

purposes of meeting the requirements of this 

division.

7. Compliance account - The account in which 

allowances held by a site are recorded for the 

purposes of meeting the requirements of this 

division.

Non-substantive renumbering of existing SIPapproved language.

No comparable provision in SIP 8. Industry sector – One of the following sectors 

of industry in which participants of the Highly 

Reactive Volatile Organic Carbons (HRVOC) 

Emissions Cap and Trade program are to be 

assigned, according to the process type and 

products from which the largest share of 

HRVOC emissions is associated, for the 

purpose of assigning an industry sector share 

under the allocation equation located in § 

101.394(a)(l)(B) of this title (relating to 

Allocation of Allowances): petroleum refining, 

non-polymer chemical producers, polymer 

producers, and storage/loading/other.

This substantive revision to add a new definition is 

approvable. The new definition of “industry sector” 

is necessary to implement the revisions to the 

allocation methodology in 30 TAC 101.394.

This substantive definition change will not 

undermine the functionality of the SIP-approved 

program. The HECT is a key component of the 

HGB attainment demonstration. TCEQ has 

demonstrated through the attainment demonstration 

modeling that the HECT program as revised will 

continue to assist the HGB area in reaching its 

emission reduction goals.

8. Level of activity - The amount of highlyreactive volatile organic compounds, as 

defined in §115.10 of this title (relating to 

Definitions), in pounds produced as an 

intermediate, by-product, or final product or 

used by a process unit during a given period of 

time, but excluding any recycled highlyreactive volatile organic compounds internal to 

the process unit.

9. Level of activity - The amount of highlyreactive volatile organic compounds, as defined 

in §115.10 of this title (relating to Definitions), 

in pounds produced as an intermediate, byproduct, or final product or used by a process 

unit during a given period of time, but 

excluding any recycled highly-reactive volatile 

organic compounds internal to the process unit.

Non-substantive renumbering of existing SIPapproved language.
Table 4: Analysis of the Amendments to 30 TAC 101.390 - Definitions

30 TAC 101.390

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.390

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.390

No comparable provision in SIP 10. Uncontrolled emissions – The total emissions 

during routine normal operations from each 

applicable facility calculated as pre-control 

using the applicable control efficiency for the 

purpose of determining site allocations under § 

101.394(a)(l)(B) of this title (relating to 

Allocation of Allowances).

This substantive revision to add a new definition is 

approvable. The new definition of “uncontrolled 

emissions” is necessary to implement the revisions 

to the allocation methodology in 30 TAC 101.394.

This substantive definition change will not 

undermine the functionality of the SIP-approved 

program. The HECT is a key component of the 

HGB attainment demonstration. TCEQ has 

demonstrated through the attainment demonstration 

modeling that the HECT program as revised will 

continue to assist the HGB area in reaching its 

emission reduction goals.

Table 5: Analysis of the Amendments to 30 TAC 101.391 - Applicability

30 TAC 101.391

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.391

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.391

This division applies to each site, as defined in 

§122.10 of this title (relating to General 

Definitions), in the Houston/Galveston/Brazoria 

ozone nonattainment area, as defined in §115.10 of 

this title (relating to Definitions), that is subject to 

Chapter 115, Subchapter H, Division 1 of this title 

(relating to Vent Gas Control) or Division 2 of this 

title (relating to Cooling Tower Heat Exchange 

Systems). Covered facilities include vent gas 

streams, flares, and cooling tower heat exchange 

systems that emit highly-reactive volatile organic 

compounds, as defined in §115.10 of this title 

(relating to Definitions), and that are located at a 

This division applies to each site, as defined in 

§122.10 of this title (relating to General 

Definitions), in the Houston-Galveston-Brazoria 

Houston/Galveston/Brazoria ozone nonattainment 

area, as defined in §115.10 of this title (relating to 

Definitions), that is subject to Chapter 115, 

Subchapter H, Division 1 of this title (relating to 

Vent Gas Control) or Division 2 of this title 

(relating to Cooling Tower Heat Exchange 

Systems). Applicable Covered facilities include 

vent gas streams, flares, and cooling tower heat 

exchange systems that emit highly-reactive volatile 

organic compounds, as defined in §115.10 of this 

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

The TCEQ also adopted the deletion of the opt-in 

provision for the HECT. The opt-in provisions 

located at 30 TAC 101.392(b) expired April 30, 

2005. TCEQ is deleted the reference to the expired 
Table 5: Analysis of the Amendments to 30 TAC 101.391 - Applicability

30 TAC 101.391

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.391

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.391

site subject to Chapter 115, Subchapter H of this 

title (relating to Highly-Reactive Volatile Organic 

Compounds). For the purpose of compliance with 

Chapter 115, Subchapter H, Division 1 or Division 

2 of this title, each site that meets the applicability 

requirements of this section, or elects to opt-in to 

this division under §101.392(b) of this title (relating 

to Exemptions), shall always be subject to this 

division.

title (relating to Definitions), and that are located at 

a site subject to Chapter 115, Subchapter H of this 

title (relating to Highly-Reactive Volatile Organic 

Compounds). For the purpose of compliance with 

Chapter 115, Subchapter H, Division 1 or Division 

2 of this title, each site that meets the applicability 

requirements of this section, or elects to opt-in to 

this division under §101.392(b) of this title (relating 

to Exemptions), will shall always be subject to this 

division.

provision in the HECT applicability, as well as 

deleting the opt-in provision itself. No sources 

opted into the HECT program. Deletion of this 

provision will not change the functionality of the 

SIP-approved program. This deletion is approvable.

Table 6: Analysis of the Amendments to 30 TAC 101.392 - Exemptions

30 TAC 101.392

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.392

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.392

a. Sites in the Houston/Galveston/Brazoria ozone 

nonattainment area that have the potential to 

emit, as defined in §116.12 of this title 

(relating to Nonattainment Review 

Definitions), ten tons per year or less of highlyreactive volatile organic compounds from all 

covered facilities at the site are exempt from 

the requirements of this division.

a. Sites in the Houston-Galveston-Brazoria 

Houston/Galveston/Brazoria ozone 

nonattainment area that have the potential to 

emit, as defined in §116.12 of this title 

(relating to Nonattainment Review 

Definitions), ten tons per year or less of highlyreactive volatile organic compounds from all 

applicable covered facilities at the site are 

exempt from the requirements of this division.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

b. Sites exempt from this division under 

subsection (a) of this section may elect to optin to the requirements of this division by 

notifying the executive director in writing by 

April 30, 2005.

b. Sites exempt from this division under 

subsection (a) of this section may elect to optin to the requirements of this division by 

notifying the executive director in writing by 

April 30, 2005.

The adopted deletion removes an opt-in provision 

of the HECT that expired on April 30, 2005. No 

sources opted into the HECT program. Deletion of 

this provision will not change the functionality of 

the SIP-approved program. 

This deletion is approvable.
Table 6: Analysis of the Amendments to 30 TAC 101.392 - Exemptions

30 TAC 101.392

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.392

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.392

c. All sites in the Houston/Galveston/Brazoria 

ozone nonattainment area, excluding Harris 

County, are exempt from the requirements of 

this division except for §101.401 of this title 

(relating to Level of Activity Certification). 

The commission may revoke this exemption 

upon public notice of this revocation. If the 

exemption is revoked, sites subject to this 

division located in the 

Houston/Galveston/Brazoria ozone 

nonattainment area, excluding Harris County, 

must comply by January 1, 2007, or within 180 

days of public notice, whichever is later.

b. All sites in the Houston-Galveston-Brazoria 

Houston/Galveston/Brazoria ozone 

nonattainment area, excluding Harris County, 

are exempt from the requirements of this 

division except for §101.401 (a) – (e) of this 

title (relating to Level of Activity 

Certification). The commission may revoke 

this exemption upon public notice of this 

revocation. If the exemption is revoked, sites 

subject to this division located in the HoustonGalveston-Brazoria 

Houston/Galveston/Brazoria ozone 

nonattainment area, excluding Harris County, 

will must comply by January 1, 2007, or within 

180 days of public notice, whichever is later.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

Table 7: Analysis of the Amendments to 30 TAC 101.393 – General Provisions

30 TAC 101.393

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.393

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.393

a. Allowances may be used only for the purposes 

described in this division and may not be used 

to meet or exceed the emission limitations 

authorized under Chapter 116, Subchapter B of 

this title (relating to New Source Review 

Permits), or any other applicable rule or law.

No change No changes made to the SIP-approved language. 

b. The initial control period is January 1, 2007, 

through December 31, 2007. Each control 

period after December 31, 2007, shall begin 

January 1 and end December 31 of each year.

No later than March 1 after each control 

b. The initial control period is January 1, 2007, 

through December 31, 2007. Each control 

period after December 31, 2007, shall begin 

January 1 and end December 31 of each year. 

No later than March 1 after each control 

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 
Table 7: Analysis of the Amendments to 30 TAC 101.393 – General Provisions

30 TAC 101.393

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.393

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.393

period, a site subject to this division must hold 

a quantity of allowances in its compliance 

account that is equal to or greater than the total 

highly-reactive volatile organic compound 

emissions from the covered facilities located at 

the site during the control period.

period, a site subject to this division must hold 

a quantity of allowances in its compliance 

account that is equal to or greater than the total 

highly-reactive volatile organic compound 

emissions from the applicable covered facilities 

located at the site during the control period.

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

c. Allowances may not be used to satisfy netting 

requirements under Chapter 116, Subchapter B, 

Divisions 5 and 6 of this title (relating to 

Nonattainment Review; and Prevention of 

Significant Deterioration Review).

No change No changes made to the SIP-approved language. 

d. Allowances may be used simultaneously to 

satisfy the requirements of this division and the 

one-to-one portion of the offset requirements 

for new or modified covered facilities, subject 

to federal nonattainment new source review 

requirements as provided in Chapter 116, 

Subchapter B, Division 7 of this title (relating 

to Emission Reductions: Offsets).

No change No changes made to the SIP-approved language. 

e. An allowance does not constitute a security or 

a property right.

No change No changes made to the SIP-approved language. 

f. All allowances will be allocated, transferred, 

deducted, or used in tenths of tons. The 

number of allowances will be rounded down to 

the nearest tenth of a ton when determining 

excess allowances and rounded up to the 

nearest tenth of a ton when determining 

allowances used.

No change No changes made to the SIP-approved language. 

g. Each site shall have only one compliance 

account.

No change No changes made to the SIP-approved language. 

h. The commission will maintain a registry of 

compliance accounts and broker accounts. The 

registry will not contain proprietary 

information.

No change No changes made to the SIP-approved language. 
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

a. On January 1, 2007, the executive director will 

deposit allowances into compliance accounts as 

follows.

a. The executive director will deposit allowances 

into compliance accounts as follows.

On January 1, 2007, the executive director will 

deposit allowances into compliance accounts as 

follows.

The April 6, 2010 HECT submittal included a 

redesigned allocation methodology starting with 

control period 2011. This is a necessary change to 

implement the methodology revisions.

This revision is approvable.

1. For sites located in Harris County that are 

not eligible to receive allowances under 

subsection (c) of this section, allowances 

for the emissions of one or more of the 

highly-reactive volatile organic 

compounds (HRVOC) as defined in 

§115.10 of this title (relating to 

Definitions), will be determined using the 

equation in the following figure.

Figure: 30 TAC § 101.394(a)(1)

 

 

 

 

 

 

Where:

S = the greater of 5.0 tons or the allocation for the 

site.

i = each site located in Harris County and subject to 

this division.

n = the total number of sites subject to this division.

LA = the level of activity baseline for a site, 

calculated as the annual level of activity for any 12 

consecutive months during the period of 2000 -

2004 for the site, as certified by the executive 

director.

1. For sites located in Harris County that are 

not eligible to receive allowances under 

subsection (c) of this section, allowances 

for the emissions of one or more of the 

highly-reactive volatile organic 

compounds (HRVOC) as defined in 

§115.10 of this title (relating to 

Definitions), will be determined using the 

equations in subparagraphs (A) and (B) of 

this paragraph. in the following figure.

(A). For calendar-year control periods 

2007-2010, the following equation will 

be used to determine the allocation for 

each site:

Figure: 30 TAC § 101.394(a)(1)

 

 

 

 

 

 

Where:

S = the greater of 5.0 tons or the allocation for the 

site.

i = each site located in Harris County and subject to 

this division.

The revisions to § 101.394(a)(1) create two distinct 

allocation methodologies for subject sites within 

Harris County. 

For control periods 2007-2010, sites in Harris 

County are allocated per 101.394(a)(1)(A). This is 

no change from the previous SIP-approved version.

These revisions to 101.394(a)(1)(A) are necessary 

to implement the allocation methodology revisions.

These revisions are approvable.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

AC1= 3,106.3 tons per year of highly-reactive 

volatile organic compounds less the total amount 

allocated to those sites receiving a minimum of 5.0 

tons.

n = the total number of sites subject to this division.

LA = the level of activity baseline for a site, 

calculated as the annual level of activity for any 12 

consecutive months during the period of 2000 -

2004 for the site, as certified by the executive 

director.

AC1= 3,106.3 tons per year of highly-reactive 

volatile organic compounds less the total amount 

allocated to those sites receiving a minimum

allocation. of 5.0 tons.

No comparable provision in the SIP. 1. [CONTINUED FROM ABOVE]

(B). For calendar-year control periods 2011 

and later the following allocation 

methodology will apply:

 

Where:

S = the allocation for the site.

Industry Sector Share = Total actual average 

emissions for the industry sector during the baseline 

emissions period divided by the total actual average 

emissions for all participating sites during the 

baseline emissions period.

Site Share = The sum of the total average actual 

emissions for vents, cooling towers, and other 

facilities and uncontrolled emissions for flares, 

heaters, boilers, furnaces, thermal and catalytic 

oxidizers, and other combustion control devices 

The revisions to § 101.394(a)(1) create two distinct 

allocation methodologies for subject sites within 

Harris County. 

For control periods 2011 and beyond, sites in Harris 

County are allocated per 101.394(a)(1)(B). This 

new allocation methodology is a substantive 

revision to the SIP-approved methodology. The 

methodology was created based on input from the 

regulated industries that the original (SIP-approved) 

methodology was inequitable. Additionally, this 

new allocation methodology provides for a step 

down in the overall HRVOC cap. The first

reduction in the cap is a 10% reduction in the total 

cap in calendar year 2014, followed by successive 

5% reductions per calendar-year control period 

until the 25% total cap reduction is reached in 

calendar year 2017.

These revisions to 101.394(a)(1)(B) are necessary 

to implement the allocation methodology revisions 

and achieve the phased step down in the capped 
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

combusting highly-reactive volatile organic 

compound (HRVOC) streams, during the baseline 

emissions period divided by the total uncontrolled 

actual average emissions for the industry sector 

during the baseline emission period.

AC1= the amount of HRVOC tons defined in (1) –

(5) of this figure less the total amount allocated to 

those sites receiving a minimum allocation under § 

101.394(a)(1)(E) of this title.

(1) For 2011-2013, AC1– 3,451.5 tons;

(2) For 2014, AC1= 3,105.9 tons;

(3) For 2015, AC1= 2,932.9 tons;

(4) For 2016, AC1= 2,761.2 tons; 

(5) For 2017 and all subsequent calendar-year 

control periods, AC1= 2,588.6 tons.

HRVOC level in Harris County that is necessary 

for attainment of the 1997 8-hour ozone standard.

These revisions are approvable.

No comparable provision in the SIP. 1. [CONTINUED FROM ABOVE]

(C). Qualifying sites not in operation or 

with HRVOC emissions that are not 

representative of permitted normal 

routine operation due to an authorized 

modification that resulted in an 

HRVOC emission reduction during the 

baseline emissions period may request 

from the executive director the use of 

any allowance stream acquired from 

facilities previously participating in the 

HRVOC Emissions Cap and Trade 

program in lieu of reallocation until the 

alternate baseline emissions are 

established for the site, according to 

the following:

i. this allowance stream is less 

The new provisions at 101.394(a)(1)(C) provide 

flexibility to certain qualifying subject sources to 

use a banked allowance stream from the previous 

HECT allocations while an alternate baseline is 

being established.

These revisions to 101.394(a)(1)(C) are necessary 

for equitable implementation of the allocation 

methodology revisions and achieve the phased step 

down in the capped HRVOC level in Harris County 

that is necessary for attainment of the 1997 8-hour 

ozone standard.

These revisions are approvable.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

than the HRVOC permit 

allowable limit in effect at the 

time the facility commences 

operation;

ii. the baseline emissions period 

for any site under this 

subparagraph will be any 

consecutive 24 months from 

2010 – 2012; and

iii. beginning with the 2014 

calendar-year control period, all 

sites will receive an allocation in 

accordance with the 

methodology under 

subparagraph (B) of this 

paragraph.

No comparable provision in the SIP. 1. [CONTINUED FROM ABOVE]

(D). A site meeting the following 

conditions may request to use an 

alternative baseline emissions period 

consisting of the two consecutive 

calendar-year control periods 

immediately preceding the baseline 

emissions period defined under § 

101.390 of this title (relating to 

Definitions):

i. the site used continuous flow 

rate monitoring and speciation 

of HRVOC to determine 

HRVOC emissions during the 

alternative baseline period;

ii. the site had permanent, 

voluntary, and quantifiable 

HRVOC emission reductions in 

Because of the redesign of the HECT allocation 

methodology, the TCEQ had to create a mechanism 

to acknowledge the reductions in HRVOC that 

occurred prior to the start of the HECT. The new 

provisions at 101.394(a)(1)(D) provide credit to 

sources that made permanent, voluntary, 

quantifiable reductions if they meet certain criteria.

These revisions to 101.394(a)(1)(D) are necessary 

for equitable implementation of the allocation 

methodology revisions and achieve the phased step 

down in the capped HRVOC level in Harris County 

that is necessary for attainment of the 1997 8-hour 

ozone standard.

These revisions are approvable.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

an amount equal to or greater 

than 25 tons resulting in a sitewide reduction in HRVOC 

emissions of at least 25% as 

calculated by comparing the 

average HRVOC emissions 

from the alternate baseline 

period to the baseline emissions 

period defined under § 101.390 

of this title;

iii. qualifying HRVOC emission 

reductions must have been made 

enforceable by a permit 

application submitted under 

Chapter 116 of this title (relating 

to Control of Air Pollution by 

Permits for New Construction or 

Modification) or other submittal 

to the executive director no later 

than April 1, 2010; and

iv. a request for an alternative 

baseline period must be received 

by the executive director no 

later than July 1, 2010.

2. For sites located in Brazoria, Chambers, 

Fort Bend, Galveston, Liberty, 

Montgomery, and Waller Counties that are 

not eligible to receive allowances under 

subsection (c) of this section, allowances 

for emissions of ethylene and propylene 

for each site will be determined using the 

equation in the following figure.

Figure: 30 TAC 101.394(a)(2)

2. For sites located in Brazoria, Chambers, 

Fort Bend, Galveston, Liberty, 

Montgomery, and Waller Counties that are 

not eligible to receive allowances under 

subsection (c) of this section, allowances 

for emissions of ethylene and propylene for 

each site will be determined using the 

equation in the following figure.

Figure: 30 TAC 101.394(a)(2)

The TCEQ adopted the deletion of the reference to 

101.394(c) because that provision is no longer 

applicable and was deleted in the April 6, 2010 

submittal. This revision is approvable and 

necessary to implement the revised allocation 

methodology.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

 

 

 

 

 

 

Where:

S = the greater of 5.0 tons or the allocation for the 

site.

i = each site located in Brazoria, Chambers, Fort 

Bend, Galveston, Liberty, Montgomery, and Waller 

Counties and subject to this division.

n = the total number of sites subject to this division.

LA = the level of activity baseline for a site, 

calculated as the annual level of activity for any 12 

consecutive months during the period of 2000 -

2004 for the site, as certified by the executive 

director.

AC2= 4,390.8 tons per year of highly-reactive 

volatile organic compounds less the total amount 

allocated to those sites receiving a minimum of 5.0 

tons.

 

 

 

 

 

 

Where:

S = the greater of 5.0 tons or the allocation for the 

site.

i = each site located in Brazoria, Chambers, Fort 

Bend, Galveston, Liberty, Montgomery, and Waller 

Counties and subject to this division.

n = the total number of sites subject to this division.

LA = the level of activity baseline for a site, 

calculated as the annual level of activity for any 12 

consecutive months during the period of 2000 -

2004 for the site, as certified by the executive 

director.

AC2= 4,390.8 tons per year of highly-reactive 

volatile organic compounds less the total amount 

allocated to those sites receiving a minimum of 5.0 

tons.

3. Uncontrolled emissions for applicable 

facility types for use in determining site 

allocations under paragraph (1)(B) of this 

subsection shall be calculated as follows:

(A). For flares, the uncontrolled emissions 

are equal to actual average HRVOC 

emissions from routine normal 

operation during the baseline emissions 

period for that facility divided by one 

minus the average percent control 

efficiency specifications for flares in § 

115.725(d) of this title (relating to 

Monitoring and Testing 

Requirements).

The new provisions at 101.394(a)(3) were adopted 

to clarify the new allocation methodology and how 

to calculate “uncontrolled emissions” for the 

applicable facility types under 101.394(a)(1)(B).

The revised allocation methodology is based on the 

calculation of uncontrolled emissions or precontrolled emissions. 

These new provisions are necessary to implement 

the allocation methodology revisions and achieve 

the phased step down in the capped HRVOC level 

in Harris County that is necessary for attainment of 

the 1997 8-hour ozone standard.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

(B). For heaters, boilers, furnaces, thermal 

and catalytic oxidizers, an other 

combustion control devices 

combusting HRVOC streams, the 

uncontrolled emissions shall be 

calculated by dividing actual average 

emissions from routing normal 

operation during the baseline emissions 

period for each facility by one minus 

99%, or by one minus the actual 

monitored HRVOC control efficiency 

for the facility, not to exceed 99.9%, if 

that facility has demonstrated the 

actual HRVOC control efficiency 

through stack performance testing.

(C). For all other facilities without a 

demonstrated combustion control 

efficiency, the control efficiency is 

equal to zero; therefore, the 

uncontrolled emissions will be equal to 

the actual HRVOC emissions from 

routine normal operation.

(D). For sites that employ flare or vent gas 

recovery or flare minimization control 

strategies that are not requesting the 

use of an alternative baseline emissions 

period under paragraph (1)(D) of this 

subsection, the owner or operator may 

request to include the amount of any 

quantifiable reduction in actual 

HRVOC emissions attributable to the 

use of flare or vent gas recovery as 

uncontrolled emissions, subject to 

approval by the executive director. The 

These revisions are approvable.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

amount of quantified reductions is 

equal to the difference of the average 

actual HRVOC emissions from routine 

normal operation during a consecutive 

12-month period prior to the 2006-

2009 baseline emissions period and the 

implementation of the HRVOC gas 

recovery or flare minimization control 

strategy and the enforceable allowable 

HRVOC permit limit for the applicable 

facilities after the recovery-based 

emissions reduction strategy 

implementation. The average actual 

HRVOC emissions used for 

quantifying the reductions under this 

subparagraph must be determined 

through continuous flow rate 

monitoring and HRVOC speciation 

testing. This allowable emissions limit 

must be made enforceable through a 

permit application submitted under 

Chapter 116 of this title to the 

executive director no later than April 1, 

2010. Credit allocated for reductions 

due to flare or vent gas recovery 

cannot also be creditable if the 

HRVOC stream is sent to another 

control device. The creditable 

emissions from flare gas recovery 

calculated in this subparagraph are 

then converted to uncontrolled 

emissions through the use of the 

average control efficiency 

specifications under § 115.725(d) of 
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

this title.

(E). For site that have purchased HRVOC 

allowance streams, uncontrolled 

emissions shall be the greater of their 

uncontrolled emissions calculated 

under subparagraphs (A) – (C) of this 

paragraph, or the sum of their original 

existing HRVOC allowance allocated 

according to paragraph (1) of this 

subsection and the amount of the 

allowance stream in tons. In the event 

that a site’s actual two-high year

emissions is less than the sum of its 

original existing HRVOC allowance 

and the amount of the allowance 

stream in tons, the difference shall be 

added to the uncontrolled emissions as 

actual emissions.

b. The level of activity of a site shall be 

determined by summing the levels of activity 

from the chosen 12 consecutive month period 

for each process unit, as defined in §115.10 of 

this title, located at the site that produce one or 

more HRVOCs as an intermediate, by-product, 

or final product or that use one or more 

HRVOCs as a raw material or intermediate to 

produce a product.

b. The level of activity of a site will shall be 

determined by summing the levels of activity 

from the chosen 12 consecutive month period 

for each process unit, as defined in §115.10 of 

this title, located at the site that produce one or 

more HRVOCs as an intermediate, by-product, 

or final product or that use one or more 

HRVOCs as a raw material or intermediate to 

produce a product.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

c. The owner or operator of a site that is subject 

to this division, but that does not include a 

process unit that produces or uses an HRVOC, 

shall apply by January 30, 2005, to the 

executive director for an allocation based on 

HRVOC throughput or storage capacity for any 

12 consecutive months during the period of 

c. Sites subject to the requirements of this 

division or electing to opt-in to the 

requirements of this division that receive an 

HRVOC allocation of less than 5.0 tons based 

on the allocation methodologies under 

subsection (a)(1)(A) of this section will be 

eligible to receive a minimum allocation of 5.0 

The SIP-approved § 101.394(d) was renumbered to 

101.394(c). The TCEQ adopted the deletion of the 

SIP-approved 101.394(c) because that provision is 

no longer applicable .

These revisions are approvable and necessary to 

implement the revised allocation methodology.
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

2000 through 2004.

1. The executive director may equitably 

allocate up to 10% of the total HRVOC 

allocations for Harris County to all such 

sites located in Harris County;

2. For sites located in Brazoria, Chambers, 

Fort Bend, Galveston, Liberty, 

Montgomery, and Waller Counties, the 

executive director may allocate up to 10% 

of the total HRVOC emissions allocated 

for those counties to all such sites located 

in Brazoria, Chambers, Fort Bend, 

Galveston, Liberty, Montgomery, and 

Waller Counties.

3. The executive director shall distribute all 

allowances not allocated under this 

subsection proportionally to those sites 

receiving allocations under subsections (a) 

and (b) of this section.

tons of HRVOC allowances per year.

The owner or operator of a site that is subject 

to this division, but that does not include a 

process unit that produces or uses an HRVOC, 

shall apply by January 30, 2005, to the 

executive director for an allocation based on 

HRVOC throughput or storage capacity for any 

12 consecutive months during the period of 

2000 through 2004.

4. The executive director may equitably 

allocate up to 10% of the total HRVOC 

allocations for Harris County to all such 

sites located in Harris County;

5. For sites located in Brazoria, Chambers, 

Fort Bend, Galveston, Liberty, 

Montgomery, and Waller Counties, the 

executive director may allocate up to 10% 

of the total HRVOC emissions allocated 

for those counties to all such sites located 

in Brazoria, Chambers, Fort Bend, 

Galveston, Liberty, Montgomery, and 

Waller Counties.

6. The executive director shall distribute all 

allowances not allocated under this 

subsection proportionally to those sites 

receiving allocations under subsections (a) 

and (b) of this section.

d. Sites subject to the requirements of this 

division or electing to opt-in to the 

requirements of this division that receive an 

HRVOC allocation of less than 5.0 tons based 

on the allocation methodologies under 

subsection (a) or (c) of this section shall be 

d. Sites subject to the requirements of this 

division or electing to opt-in to the 

requirements of this division that receive an 

HRVOC allocation of less than 5.0 tons based 

on the allocation methodology under 

subsection (a)(1)(B) of this section 
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

eligible to receive a minimum allocation of 5.0 

tons of HRVOC allowances per year.

methodologies under subsection (a) or (c) of 

this section will shall be eligible to receive a 

minimum allocation of 5.0 tons of HRVOC 

allowances per year. Sites subject to the 

requirements of this division that receive an 

HRVOC allocation of greater than 5.0 tons but 

less than 10.0 tons based on the allocation 

methodology under subsection (a)(1)(B) of this 

section will be eligible to receive a minimum 

allocation of 10.0 tons of HRVOC allowances 

per year.

e. If the total actual HRVOC emissions from the 

covered facilities at a site during a control 

period exceed the amount of allowances in the 

compliance account for the site on March 1 

following the control period, allowances for the 

next control period shall be reduced by an 

amount equal to the emissions exceeding the 

allowances in the compliance account plus 

10% of the exceedance. This allocation 

reduction does not preclude the executive 

director from initiating an enforcement action. 

If a compliance account does not hold 

sufficient allowances to accommodate the 

reduction, the executive director may issue a 

notice of deficiency to the owner or operator. 

The owner or operator shall purchase or 

transfer allowances sufficient to accommodate 

the reduction within 30 days of issuance of the 

notice of deficiency from the executive 

director.

e. If the total actual HRVOC emissions from the 

covered facilities at a site during a control 

period exceed the amount of allowances in the 

compliance account for the site on March 1 

following the control period, allowances for the 

next control period will shall be reduced by an 

amount equal to the emissions exceeding the 

allowances in the compliance account plus 

10% of the exceedance. This allocation 

reduction does not preclude the executive 

director from initiating an enforcement action. 

If a compliance account does not hold 

sufficient allowances to accommodate the 

reduction, the executive director may issue a 

notice of deficiency to the owner or operator. 

The owner or operator will shall purchase or 

transfer allowances sufficient to accommodate 

the reduction within 30 days of issuance of the 

notice of deficiency from the executive 

director.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

f. Allowances will be allocated by the executive 

director, who will deposit allowances into each 

compliance account:

No change No changes made to the SIP-approved language. 
Table 8: Analysis of the Amendments to 30 TAC 101.394 – Allocation of Allowances

30 TAC 101.394

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.394

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.394

1. initially, by January 1, 2007; and

2. subsequently, by January 1 of each 

following year.

g. The executive director may adjust the deposits 

for any control period to reflect new or existing 

state implementation plan requirements.

No change No changes made to the SIP-approved language. 

h. The executive director may add or deduct 

allowances from compliance accounts based on 

the review of reports required under §101.400 

of this title (relating to Reporting).

No change No changes made to the SIP-approved language. 

Table 9: Analysis of the Amendments to 30 TAC 101.396 – Allowance Deductions

30 TAC 101.396

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.396

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.396

a. On March 31 of each year after a control 

period, allowances representing the total 

highly-reactive volatile organic compounds 

(HRVOC) emissions from the covered 

facilities at a site during the previous control 

period will be deducted from the compliance 

account for the site. The amount of HRVOC 

emissions will be based upon the monitoring 

and testing protocols established in §115.725 

and §115.764 of this title (relating to 

Monitoring and Testing Requirements), as 

appropriate.

a. On March 31 of each year after a control period, 

allowances representing the total highly-reactive 

volatile organic compounds (HRVOC) 

emissions from the applicable covered facilities 

at a site during the previous control period will 

be deducted from the compliance account for 

the site. The amount of HRVOC emissions will 

be based upon the monitoring and testing 

protocols established in §115.725 and §115.764 

of this title (relating to Monitoring and Testing 

Requirements), as appropriate.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

b. The amount of HRVOC emissions from 

covered facilities shall be calculated for each 

hour of the year and summed to determine the 

annual emissions for compliance. For 

b. The amount of HRVOC emissions from 

applicable covered facilities will shall be 

calculated for each hour of the year and 

summed to determine the annual emissions for 

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.
Table 9: Analysis of the Amendments to 30 TAC 101.396 – Allowance Deductions

30 TAC 101.396

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.396

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.396

emissions from emissions events subject to the 

requirements of §101.201 of this title (relating 

to Emissions Event Reporting and 

Recordkeeping Requirements) or emissions 

from scheduled maintenance, startup, or 

shutdown activities subject to the requirements 

of §101.211 of this title (relating to Scheduled 

Maintenance, Startup, and Shutdown Reporting 

and Recordkeeping Requirements); the hourly 

emissions to be included in the summation 

shall not exceed the short-term limit of 

§115.722(c) and §115.761(c) of this title 

(relating to Site-wide Cap and Control 

Requirements; and Site-wide Cap).

compliance. For emissions from emissions 

events subject to the requirements of §101.201 

of this title (relating to Emissions Event 

Reporting and Recordkeeping Requirements) or

emissions from scheduled maintenance, startup, 

or shutdown activities subject to the 

requirements of §101.211 of this title (relating 

to Scheduled Maintenance, Startup, and 

Shutdown Reporting and Recordkeeping 

Requirements);, the hourly emissions to be 

included in the summation shall not exceed the 

short-term limit of §115.722(c) and §115.761(c) 

of this title (relating to Site-wide Cap and 

Control Requirements; and Site-wide Cap).

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

The TCEQ also adopted a substantive revision to 

the compliance calculation. Previously, emissions 

subject to the emissions event reporting 

requirements at 101.201 were only included in the 

hourly calculations up to the short term limits of §§ 

115.722(c) and 115.761(c). Under the adopted 

provision, all emissions associated with emission 

events are counted towards compliance with the 

annual cap.

This revision is approvable.

c. If the monitoring and testing data referenced in 

subsection (a) of this section does not exist or 

is unavailable, the site may determine its 

HRVOC emissions for that period of time 

using the following methods and in the 

following order: continuous monitoring data; 

periodic monitoring data; testing data; data 

from manufacturers; and engineering 

calculations. When determining the amount of 

HRVOC emissions under this subsection, the 

site shall include a justification for using the 

substitute method or methods in lieu of the 

methods referenced in subsection (a) of this 

section.

c. If the monitoring and testing data referenced in 

subsection (a) of this section does not exist or 

is unavailable, the site may determine its 

HRVOC emissions for that period of time 

using the following methods and in the 

following order: continuous monitoring data; 

periodic monitoring data; testing data; data 

from manufacturers; and engineering 

calculations. When determining the amount of 

HRVOC emissions under this subsection, the 

site will shall include a justification for using 

the substitute method or methods in lieu of the 

methods referenced in subsection (a) of this 

section.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

d. When deducting allowances from the 

compliance account of a site for a control 

period, the executive director will deduct the 

allowances beginning with the most recently 

No change No changes made to the SIP-approved language. 
Table 9: Analysis of the Amendments to 30 TAC 101.396 – Allowance Deductions

30 TAC 101.396

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.396

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.396

allocated allowances before deducting banked 

allowances.

Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

a. Allowances allocated for a control period that 

are not used for compliance in that control 

period may be banked for use in demonstrating 

compliance for the next control period or 

transferred.

No change No changes made to the SIP-approved language. 

b. Allowances that have not expired or been used 

may be transferred at any time during a control 

period, except as provided in this section.

No change No changes made to the SIP-approved language. 

1. The person desiring to transfer the 

allowances shall apply for approval of the 

transaction to the executive director by 

submitting a completed Form ECT-2, 

Application for Transfer of Allowances.

No change No changes made to the SIP-approved language. 

2. The ECT-2 form must include the 

purchase price per allowance proposed to 

be paid, except for transactions between 

sites under common ownership or control.

No change No changes made to the SIP-approved language. 

3. All information regarding the quantity and 

purchase price of the allowances will be 

immediately made available to the public.

No change No changes made to the SIP-approved language. 

4. If the executive director approves the 

application, the executive director will 

send a letter to the seller and purchaser 

No change No changes made to the SIP-approved language. 
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

reflecting the transaction. The transaction 

is final upon issuance of the letter.

c. A person receiving allowances on an annual 

basis may permanently transfer ownership of 

current and future allowances to any person in 

accordance with the following requirements.

No change No changes made to the SIP-approved language. 

1. The person desiring to transfer the 

allowances shall apply for approval of the 

transaction to the executive director by 

submitting a completed Form ECT-4, 

Application for Permanent Transfer of 

Allowance Ownership.

No change No changes made to the SIP-approved language.

2. The ECT-4 form must include the 

purchase price per allowance proposed to 

be paid, except for transactions between 

sites under common ownership or control.

No change No changes made to the SIP-approved language. 

3. All information regarding the quantity and 

purchase price of the allowances will be 

immediately made available to the public.

No change No changes made to the SIP-approved language. 

4. If the executive director approves the 

application, the executive director will 

send a letter to the seller and purchaser 

reflecting the transaction. The transaction 

is final upon issuance of the letter.

No change No changes made to the SIP-approved language. 

d. A person may transfer allowances that are 

scheduled to be allocated in a future control 

period but have not yet been deposited into an 

account.

No change No changes made to the SIP-approved language. 

1. The person desiring to transfer the 

allowances shall apply for approval of the 

transaction to the executive director by 

submitting a completed Form ECT-5, 

Application for Transfer of Individual 

Future Year Allowances.

No change No changes made to the SIP-approved language. 
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

2. The ECT-5 form must include the 

purchase price per allowance proposed to 

be paid, except for transactions between 

sites under common ownership or control.

No change No changes made to the SIP-approved language. 

3. All information regarding the quantity and 

purchase price of the allowances will be 

immediately made available to the public.

No change No changes made to the SIP-approved language. 

4. If the executive director approves the 

application, the executive director will 

send a letter to the seller and purchaser 

reflecting the transaction. The transaction 

is final upon issuance of the letter.

No change No changes made to the SIP-approved language. 

No comparable provision in SIP. e. Allowances that were provided under § 

101.394(a)(l)(C) of this title (relating to 

Allocation of Allowances) are not eligible for 

transfer under subsections (b), (c), or (d) of this 

section.

The new provision adopted at 101.399(e) prevents 

the transfer or trade of allowances that were 

allocated to a source using an alternate baseline 

under 101.394(a)(1)(C). This is new provision is 

necessary to maintain the integrity of the HECT 

allowance market since the allocations made under 

101.394(a)(1)(C) are provisional and are replaced 

in 2014 with allocations made pursuant to 

101.394(a)(1)(B).

This new provision is approvable.

e. Allowances generated from sites located in 

counties other than Harris County may not be 

used at sites located in Harris County. 

Allowances generated from sites located in 

Harris County may not be used at sites located 

in counties other than Harris County.

No change other than renumbering.

f. Allowances generated from sites located in 

counties other than Harris County may not be 

used at sites located in Harris County. 

Allowances generated from sites located in 

Harris County may not be used at sites located 

in counties other than Harris County.

Non-substantive renumbering of existing SIPapproved language.

Revision is approvable.

f. Only authorized account representatives may 

transfer allowances.

No change other than renumbering.

g. Only authorized account representatives may 

Non-substantive renumbering of existing SIPapproved language.
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

transfer allowances. Revision is approvable.

g. Allowances subject to an approved transaction 

will be deposited into the purchaser's broker or 

compliance account within 30 days of receipt 

of a completed transfer application.

No change other than renumbering.

h. Allowances subject to an approved transaction 

will be deposited into the purchaser's broker or 

compliance account within 30 days of receipt of 

a completed transfer application.

Non-substantive renumbering of existing SIPapproved language.

Revision is approvable.

h. Volatile organic compound emission reduction 

credits (ERC) certified in accordance with 

Division 1 of this subchapter (relating to 

Emission Credit Banking and Trading) may be 

converted to a yearly highly-reactive volatile 

organic compound (HRVOC) allocation.

No change other than renumbering.

i. Volatile organic compound emission reduction 

credits (ERC) certified in accordance with 

Division 1 of this subchapter (relating to 

Emission Credit Banking and Trading) may be 

converted to a yearly highly-reactive volatile 

organic compound (HRVOC) allocation.

Non-substantive renumbering of existing SIPapproved language.

Revision is approvable.

1. Qualified volatile organic compound 

(VOC) ERCs must be generated:

No change No changes made to the SIP-approved language. 

A. from a reduction at a site located in 

the Houston/Galveston/Brazoria 

nonattainment area;

No change No changes made to the SIP-approved language. 

B. from a reduction strategy 

implemented after December 31, 

2004; and

No change No changes made to the SIP-approved language. 

C. from a reduction in VOC species 

other than those defined as HRVOCs 

under §115.10 of this title (relating to 

Definitions).

No change No changes made to the SIP-approved language. 

2. VOC reductions due to the installation of 

best available control technology do not 

qualify for conversion under this 

subsection.

No change No changes made to the SIP-approved language. 

3. In addition to the requirements of Division 

1 of this subchapter, a qualified VOC ERC 

must meet the following requirements:

No change No changes made to the SIP-approved language. 
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

A. the ERC must be quantifiable, real, 

surplus, enforceable, and permanent 

as required in §101.302 of this title 

(relating to General Provisions) at the 

time the ERC is converted;

No change No changes made to the SIP-approved language. 

B. the baseline emissions to which the 

VOC reduction is compared must 

consist of the average actual 

emissions for any two consecutive 

calendar years preceding the emission

reduction strategy and that include or 

follow the most recent year of 

emission inventory used in the state 

implementation plan;

No change No changes made to the SIP-approved language. 

C. the quantification of VOC reductions 

must be performed using the 

monitoring and testing methods 

required under §115.725 or §115.764 

of this title (relating to Monitoring 

and Testing Requirements) and 

subject to the recordkeeping and 

reporting requirements under 

§115.726 and §115.766 of this title 

(relating to Recordkeeping and 

Reporting Requirements);

No change No changes made to the SIP-approved language. 

D. the ERC must not have expired; and No change No changes made to the SIP-approved language. 

E. the owner of the ERC shall have prior 

approval from the executive director 

to convert the ERC to an HRVOC 

allocation.

No change No changes made to the SIP-approved language. 

4. VOC ERCs must be converted to HRVOC 

allowances at a ratio calculated using the 

equation in the following figure.

4. VOC ERCs must be converted to HRVOC 

allowances at a ratio calculated using the 

equation in the following figure.

Non-substantive renumbering of existing SIPapproved language.

Revision is approvable.
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

Figure 30 TAC § 101.399(h)(4)

 

 

 

 

Where:

A = yearly allocation of highly-reactive volatile 

organic compound allowances.

Ri = the reactivity of each speciated volatile organic 

compound reduced as specified in California Code 

of Regulations, Title 17, Chapter 1, §94700, 

concerning MIR Values for Compounds, as 

amended.

Ei = the actual emissions reduced, in tons per year, 

of each speciated volatile organic compound.

Figure 30 TAC § 101.399(ih)(4)

 

 

 

 

Where:

A = yearly allocation of highly-reactive volatile 

organic compound allowances.

Ri = the reactivity of each speciated volatile organic 

compound reduced as specified in California Code 

of Regulations, Title 17, Chapter 1, §94700, 

concerning MIR Values for Compounds, as 

amended.

Ei = the actual emissions reduced, in tons per year, 

of each speciated volatile organic compound.

5. For each site eligible to receive allowances 

under §101.394(a) or (c) of this title 

(relating to Allocation of Allowances), 

additional HRVOC allowances received 

from the conversion of VOC ERCs under 

this subsection must be limited to a 

quantity not to exceed more than 5% of the 

site’s initial HRVOC allocation.

5. For each site eligible to receive allowances 

under §101.394(a) or (c) of this title 

(relating to Allocation of Allowances), 

additional HRVOC allowances received 

from the conversion of VOC ERCs under 

this subsection must be limited to a 

quantity not to exceed more than 5% of the 

site’s initial HRVOC allocation.

The TCEQ adopted the deletion at 101.399(i)(5) of 

the reference to the SIP-approved 101.394(c) 

provisions that is no longer applicable and also 

deleted in the April 6, 2010 submittal.

This revision is approvable. 

6. In addition to paragraph (5) of this 

subsection, sites subject to this division 

may receive an HRVOC allocation from 

the conversion of VOC ERCs under this 

subsection equivalent to any HRVOC 

emissions increases from new or modified 

covered facilities not in operation prior to 

January 2, 2004, and that were included in 

an application for a permit under Chapter 

116 of this title (relating to Control of Air 

No change No changes made to the SIP-approved language. 
Table 10: Analysis of the Amendments to 30 TAC 101.399 – Allowance Banking and Trading

30 TAC 101.399

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.399

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.399

Pollution by Permits for New Construction 

or Modification) that was deemed 

administratively complete by the executive 

director within one year of the effective 

date of this rule.

Table 11: Analysis of the Amendments to 30 TAC 101.400 – Reporting

30 TAC 101.400

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.400

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.400

a. No later than March 31 after each control 

period, each site shall submit a completed 

Form ECT-1H, Highly-Reactive Volatile 

Organic Compound (HRVOC) Emissions Cap 

and Trade Annual Compliance Report, to the 

executive director, which shall include the 

following:

a. No later than March 31 after each control 

period, each site will shall submit a completed 

Form ECT-1H, Highly-Reactive Volatile 

Organic Compound (HRVOC) Emissions Cap 

and Trade Annual Compliance Report, to the 

executive director, which will shall include the 

following:

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

1. the total amount of actual HRVOC 

emissions from covered facilities at the 

site during the preceding control period;

1. the total amount of actual HRVOC 

emissions from applicable covered facilities 

at the site during the preceding control 

period;

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

2. the method or methods used to determine 

the actual HRVOC emissions, including, 

2. the method or methods used to determine 

the actual HRVOC emissions, including, 

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 
Table 11: Analysis of the Amendments to 30 TAC 101.400 – Reporting

30 TAC 101.400

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.400

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.400

but not limited to, monitoring protocol and 

results, calculation methodologies, and 

emission factors; and

but not limited to, monitoring protocol and 

results, calculation methodologies, and 

emission factors; and

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

3. a summary of all final transactions for the 

preceding control period.

3. a summary of all final transactions for the 

preceding control period; and.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

No comparable revision in the SIP 4. the total amount and respective dates of 

HRVOC emissions from emissions events 

subject to the requirements of §101.201 of 

this title (relating to Emissions Event 

Reporting and Recordkeeping 

Requirements).

This new adopted provision requires sources to 

report HRVOC emission events in the yearly HECT 

compliance report. This new provision will provide 

TCEQ with more visibility of the emission events 

occurring in the HGC area. This will improve the 

TCEQ’s oversight of the HECT and ensure 

operability of the program and further the goals of 

the attainment demonstration.

This revision is approvable.

b. For sites failing to submit an ECT-1H form by 

the required deadline in subsection (a) of this 

section, the executive director may withhold 

approval of any proposed trades from that site 

involving allowances allocated for the control 

period for which the ECT-1H form is due or to 

be allocated in subsequent control periods.

No change No changes made to the SIP-approved language. 

Table 12: Analysis of the Amendments to 30 TAC 101.401 – Level of Activity Certification
30 TAC 101.401

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.401

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.401

a. No later than April 30, 2005, the owner or 

operator of each site subject to this division 

shall submit to the executive director a 

completed Form ECT-3H, Highly-Reactive 

Volatile Organic Compound Emissions Cap 

and Trade Level of Activity Certification 

Form.

a. No later than April 30, 2005, the owner or 

operator of each site subject to this division will 

shall submit to the executive director a 

completed Form ECT-3H, Highly-Reactive 

Volatile Organic Compound Emissions Cap and 

Trade Level of Activity Certification Form.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

b. For each process unit subject to this division, 

the owner or operator shall certify in the ECT3H form the level of activity for the selected 12 

consecutive months during the period of 2000 

through 2004.

b. For each process unit subject to this division, 

the owner or operator will shall certify in the 

ECT-3H form the level of activity for the 

selected 12 consecutive months during the 

period of 2000 through 2004.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

c. The owner or operator shall attach to the ECT3H form information and documentation 

necessary to support the proposed level of 

activity baseline.

c. The owner or operator will shall attach to the 

ECT-3H form information and documentation 

necessary to support the proposed level of 

activity baseline.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIPapproved program. Recommend approval of the 

revisions into the Texas SIP.

d. The owner or operator of the site may mark 

any portion of the ECT-3H form, or supporting 

information and documentation, as confidential 

under Texas Health and Safety Code, 

§382.041.

No change No changes made to the SIP-approved language. 

e. In conjunction with submission of the ECT-3H 

form, the owner or operator of the site subject 

to this division shall provide enforceable 

documentation of the maximum allowable 

emission rate of highly-reactive volatile 

organic compounds from facilities located at 

e. In conjunction with submission of the ECT-3H 

form, the owner or operator of the site subject to 

this division will shall provide enforceable 

documentation of the maximum allowable 

emission rate of highly-reactive volatile organic 

compounds from facilities located at that site.

Non-substantive revisions to the SIP-approved 

language made to provide clarity in the rule and 

comply with Texas Register format requirements.

These non-substantive revisions will have no 

negative impact on the functionality of the SIP-
Table 12: Analysis of the Amendments to 30 TAC 101.401 – Level of Activity Certification

30 TAC 101.401

SIP-Approved by EPA September 6, 2006 (71 FR 

52659) as adopted by the TCEQ on December 1, 

2004.

Revisions to 30 TAC 101.401

Revisions Adopted March 10, 2010

Submitted to EPA as a SIP revision on April 6, 

2010

Analysis of Revisions to 30 TAC 101.401

that site. approved program. Recommend approval of the 

revisions into the Texas SIP.

No comparable provision in the SIP f. No later than July 1,2010, the owner or operator 

of each site subject to this division will submit 

to the executive director a completed Form 

ECT-6H, Highly Reactive Volatile Organic 

Compound Emissions Cap and Trade Baseline 

Emissions Certification Form.

The new adopted provision at 101.401(f) requires 

each site to submit a form to establish baseline 

emissions for the revised allocation methodology. 

This new provision is necessary for the 

implementation of the revised allocation 

methodology.

This revision is approvable.

No comparable provision in the SIP g. For each site subject to this division, the owner 

or operator will certify in the ECT-6H form the 

two highest consecutive calendar year control 

periods selected from the period of 2006 - 2009 

to establish the baseline emissions period.

The new adopted provision at 101.401(g) requires 

each site to submit a form to establish baseline 

emissions period for the revised allocation 

methodology. This new provision is necessary for 

the implementation of the revised allocation 

methodology.

This revision is approvable.
III. Conclusion

The preceding analysis has demonstrated that the revisions to the MECT and HECT, adopted 

March 10, 2010, and submitted as revisions to the Texas SIP on April 6, 2010 as Rule Projects 

number 2009-019-101-EN and 2009-006-101-EN, respectively, are approvable. The analysis 

found that the revisions, while substantive in nature, still support the goals of the HGB 

attainment demonstrate. It is recommended that EPA propose approval of the April 6, 2010 

MECT and HECT SIP revisions in conjunction with a proposed action on the HGB attainment 

demonstration.