1 TECHNICAL SUPPORT DOCUMENT

30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds Revisions to Chapter 117 Due to Repeal of Chapter 101 System Cap Trading Program Rules Rule Project No. 2011-018-117-EN EPA-R06-OAR-2012-0364

30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds Chapter 117 Stationary Diesel Engine Petition - Halliburton Rule Project No. 2012-031-117-AI EPA-R06-OAR-2013-0400

30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds Definition Update - ERCOT Rule Project No. 2012-025-117-AI EPA-R06-OAR-2013-04002 This Technical Support Document (TSD) is co mprised of 3 separate sections 1, 2 and 3.

Section 1 concerns our evaluation of Texas’ final rule adopted on April 13, 2012 as a revision to the Texas State Implementation Plan (SIP) concerning 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2011-018-117-EN.

Section 2 of the TSD concerns the our evaluation of Texas’ fi nal rule adopted on May 8, 2013 as a revision to the Texas State Implementation Pl an (SIP) 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2012-031-117-AI.

Section 3 of the TSD concerns the our evalua tion of Texas’ final rule adopted on May 14, 2013 as a revision to the Texas State Implementation Plan (SIP) 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Ru le Project No. 2012-025-117-AI . No material in any of these 3 SIP submitta ls was designated as Confidential Business

Information.3 Section 1 - Revisions to Chapter 117 Due to Repeal of Chapter 101 System Cap Trading Program Rules.

What is the System Cap Trading (SCT) Program?

The SCT Program was designed by the TCEQ to provide additional compliance flexibility to source owners and operators subject to the sy stem caps established in 30 TAC Chapter 117. Under this program, sources under common owne rship or control may be voluntarily grouped together in a system with a system cap on tota l emissions from the sources in the system. The Chapter 117 system caps establis h daily, rolling 30-day average, and annual average emission caps depending upon the source’s location. The Chapter 117 system caps enable participating

sources to transfer emission allo wables (the amount greater th an zero that a source owner or operator’s allowable emissions exceed the actual emissions over the applicable averaging time period) from source to source within the same system, provided the overall cap is not exceeded.

This particular revision was prompted, in pa rt, by the October 25, 2010 letter from EPA to TCEQ requesting that TCEQ withdraw and revi se its SCT rules under 30 TAC Chapter 101 from SIP consideration. Later, EPA proposed disappr oval of TCEQ’s SCT program on November 18, 2010 (75 FR 70654), because EPA considered th e SCT program lacked several necessary components for emissions trading programs as outlined in EPA’s Economic Incentive Program Guidance. However, the review of the repe al/removal of the SCT rules under 30 TAC Chapter 101 is not subject of this TSD. Our review here, in section1 of this document, concerns only revisions to the 30 TAC Chapter 117 rules. We received this SIP submittal package, w ith a letter dated April 13, 2012, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, §§117.1020, 117.1120, 117.1220, 117.3020, 117.9800. The system cap emission limits in Chapter 117 set daily, 30-day rolling average, or annual emission caps on total NOx em issions from EGFs that are: subject to the Chapter 117 emission specifications for atta inment demonstration (ESAD); under common ownership or control; and grouped to gether in an electric power ge nerating system, as defined in §117.10(14). For example, if company A has three sites, X, Y, and Z with 3, 4, and 5 EGFs, respectively, that are subject to the Chapter 117 ESADs and are part of an electric power generating system, Chapter 117 sets a daily, 30-day rol ling average, or annual emission caps on

the total emissions from the affected EGFs.4 This particular rule identifier information is:

Rule Project No. 2011-018-117-EN Repeal of Chapter 101 System Cap Trading Pr ogram Rules and Revisions to Chapter 117 Amendments to: §§117.1020, 117.1120, 117.1220, 117.3020, 117.9800 Date Adopted: March 28, 2012 Date Filed with the Secretar y of State: March 30, 2012 Date Published in the Texas Register : April 13, 2012 Date Effective: April 19, 2012

On May 23, 2007, the commission adopted reformatted and renumbered Chapter 117 rules. EPA approved those revisions on December 3, 2008 at 73 FR 73562. The SCT program has had minimal participation from affected sources ove r time, and on February 23, 2011, State withdrew the Chapter 101 SCT program rules from consider ation by the EPA as a revision to the SIP. Removing the references to the SCT program in Chapter 117 will avoid confusion among regulated entities that are subject to the Chapte r 117 system cap emission limits and will address any potential concerns regarding the use of a co mpliance option that is not federally enforceable to meet a federally enforceable rule. Removing the references to the SCT program in Chapter 117, published in Texas Register of April 13, 2012, will provide for consistency among Chapter 101 rules and Chapter 117 rules. The affected provisions in 30 TAC Chapter 117 are: Subchapter C, Divisions 1 - 3; Subchapter E, Division 1; and Subchapter H, Di vision 2. These revisions amend §§117.1020, 117.1120, 117.1220, 117.3020, and 117.9800 by removing references to Chapter 101 SCT program rules. These changes are adopted by TCEQ concurrently with the removal/repeal of sections pertaining to the SCT program from Chapter 101. The repeal of sections pertaini ng to the SCT program from Chapter 101 was published, separately, in th e April 13, 2012, issue of Texas Register at 37 TexReg 2656. The evaluation of revisions to 30 TAC Chapter 101 is not subject of this TSD. The adopted revisions to §§117.1020(l), 117.1120( l), 117.1220(l), and 117.3020(l) remove all references to Chapter 101, Subchapter H, Di vision 5, SCT program. The adopted revisions to §117.9800(b) remove references to the SCT progr am requirements in Chapter 101, Subchapter H, Division 5.5 As result, the text of sect ion 117.1020(l) will be revised:

The text of section 117.1120(l) will be revised:

The text of section 117.1220(l) will be revised:

The text of section 117.1320(l) will be revised:

The text of section 117.9 800(b) will be revised:

TCEQ adopted and published revisions to 30 TAC Chapter 117 in the Apr il 13, 2012 issue of the Texas Register at 37 TexReg 2658. For Ch apter 117 review purposes the revisions are

administrative in nature.6 Section 2 – Revisions to 30 TAC Chapte r 117, Stationary Diesel Engine Petition - Haliburton

Section 2 of the TSD concerns our evaluation of Texas’ final rule adopted on May 8, 2013 as a revision to the Texas State Impl ementation Plan (SIP) concerning 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No Rule Project No 2012-031-117-AI. We received this SIP submittal package, with a letter dated May 8, 2013, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, sections 117.2103, 117.2130, 117.2135, and

117.2145. This particular rule identifiers information is as follows:

Rule Project No. 2012-031-117-AI Chapter 117 Stationary Diesel Engine Petition Amendments to: §§117.2103, 117.2130, 117.2135, 117.2145 Date Adopted: April 10, 2013 Date Filed with the Secret ary of State: April 12, 2013 Date Published in the Texas Register : April 26, 2013 Date Effective: May 2, 2013

TCEQ proposed this rule change following a petition from Halliburton Energy Services, Incorporated (Halliburton) on Ap ril 5, 2012 requesting a partial ex emption from the rules in 30 TAC Chapter 117, Subchapter D, Division 2 that limits NOx emissions from minor sources in the Dallas-Fort Worth (DFW) 1997 eight-hour oz one nonattainment area. See TCEQ Project

No. 2012-029-PET-NR for more information on th e petition. TCEQ approved the petition for rulemaking on May 30, 2012, and the Commission i ssued an order to examine the subject petition and initiate a rulemaking. See th e rule identifiers information above.

What makes the Halliburton drawworks engine unique?

According to the petition filed on behalf of Ha lliburton, the unique serv ice of the Halliburton drawworks engine makes ongoing testing to demonstrate compliance with the Chapter 117 NOx emission limits impractical and comparatively more expensive than the sta tionary engine testing envisioned during the adoption of the Chapter 117 rules in 2007. To comply with the Chapter 117 testing requirements, Halliburton must arrange for both emissions testing equipment (a normal and expected expense) and for the rental, transport, and use of a dynamometer, which is typically used by engine manufacturers for testing purposes.7 Preparing the engine for insta llation of the dynamometer and retu rning the engine to operational status subsequent to the emissions testing presents signi ficant safety hazards associated with the removal of the drive train and transmission, rem oval of the torque converter, and the placement and use of non-dedicated hoisting equipment on the rig floor. Performing a compliant emissions test of the dr awworks engine takes three to four days to complete, whereas compliant emissions testing on a typical stationary engine only requires approximately half a day (three one-hour tests). Additionally, engines used to raise and lower down-hole equipment in actual oil and gas operations in the field, which the drawworks engine is designed to simulate, are typi cally not subject to similar Chapter 117 testing requirements because they are not installed at one location long enough to trigger the defi nition of a stationary internal combustion engine in §117.10. For a secti on by section review of this rule revision, see

below.

Section 117.2103, Exemptions

The revision to §117.2103(10) will exempt stationary diesel engines that ar e used exclusively for product testing and personnel tr aining, operate less than 1,000 hours per year on a rolling 12- month basis, and meet applicable EPA’s Tier emission standards for non-road engines listed in 40 CFR §89.112(a), Table 1 (October 23, 1998) in effect at the time of installation, modification, reconstruction, or relo cation. See Appendix B.

Section 117.2130, Operating Requirements To be exempted under the 117.2130(10) the engine will need to be 40 CFR §89.112(a) compliant (a federally enforceable requirement); therefore, the revision is approvable.

Section 117.2135, Monitoring, Notifica tion, and Testing Requirements The revision to §117.2135(e) references the a dopted exemption in §117.2103(10). The revised §117.2135(e) requires sources claiming the adopted exemption in §117.2103(10) to monitor the operating time with a non-resettable elapsed run time meter in order to demonstrate compliance with the operating restrictions in §117.2103(10). To conform to Texas Register formatting standards, TCEQ also amended subsection (e) by adding a reference to the title of §117.2103.8 The revision in Section 117.2135 addresses the cr oss referencing of affected sections, and provides for continuity of the ope ration of the meter by requiring it to be of a non-resettable type, thus one would be able to verify the integrity of parameter used for compliance determination; therefore, the revi sion is approvable.

Section 117.2145, Recordkeeping and Reporting Requirements The revision to §117.2145(b) reformats the exis ting provision and adding new recordkeeping requirements associated with the adopted ex emption in §117.2103(10). The adopted amendment does not alter the intent of the existing recordkeeping requirements for sources currently complying with §117.2145(b) or impose any new re quirements on engines claimed exempt. The revision to §117.2145(b) reformats the r ecord retenti on requirement in existing §117.2145(b) to require the records specified in paragr aphs (1)- (3) to be ma intained for at least five years and must be made av ailable upon request to representatives of th e executive director, EPA, or any local air pollution control agen cy having jurisdiction. The adopted 117.2145(b)(2) includes the existing requirements in §117.2145(b) for the owner or operator of each engine claimed exempt under §117.2103(5) to maintain wr itten records of the purpose of engine operation and, if operation was for an emergenc y situation, identifica tion of the type of emergency situation and the start and end tim es and date(s) of the emergency situation. The adopted §117.2145(b)(3) requires the owner or operator of e ach engine claimed exempt under §117.2103(10) to maintain records of manufactur er's specifications or test data sufficient to demonstrate compliance with the corresponding emission standard for non-road engines listed in 40 CFR §89.112(a), Table 1 (October 23, 1998) as specifie d in §117.2103(10)(C). The revision identifies the recordkeeping a nd monitoring requirements that will assist compliance facilitation; therefor e, the revision is approvable. For section 110(l) analysis (a nti-backsliding) see below.

Section 110(l) analysis: In the April 26, 2013 issue of Texas Register at 38 TexReg 2634 TCEQ provided the following information to demonstrate why the adopted new exemption in §117.2103 will not negatively impact the status of the state's progress to wards attainment with the 1997 eight-hour ozone9 NAAQS, will not interfere with control measur es, and will not prevent reasonable further progress toward attainment of th e ozone NAAQS. TCEQ states that, “On May 23, 2007, as part of the DFW 1997 eight -hour ozone attainment demonstration SIP revision, the commission adopted new em ission control requirements for stationary reciprocating internal combustion engines located at mi nor industrial, commercial, and institutional sources of NOx in the DF W area. The NOx emission reductions were necessary for the DFW area to attain the 1997 eight-hour ozone NAAQS. Similar to the HGB rulemaking, the DFW rulemaking also adopted exemptions for engines used for specific purposes, such as those used in re search and testing a nd those used for the purposes of performance verification testing. The adopted partial ex emption is narrowly tailored and will not adversely impact th e DFW area's progress in attaining the 1997 eight-hour ozone NAAQS. During the 2000 and 2007 rulemakings, no stationary engines similar in function to the Halliburton Drawwork s Engine were identified in the emissions inventory in the counties impacted by the ru lemakings, and no such engines were relied upon for creditable reductions for the SIP re vision. Therefore, the adopted rulemaking will not result in a loss of any SIP credita ble reductions for the DFW 1997 eight-hour ozone nonattainment area. Additionally, based on February 2012 emissions test results and a limit of no more than 1,000 hours of run time per year, the Drawworks Engine has maximum potential annual NOx emissions of 0.87 tons per year and is well below the emission standards established in the Chapte r 117 minor source NOx rules. The adopted exemption criteria require compliance with the federal standards in 40 CFR Part 89 to ensure that the adopted exemption will not resu lt in backsliding. Based on the test results, the Drawworks Engine at the Halliburt on Carrollton Plant meets Tier 3 emission standards for non-road engi nes listed in 40 CFR §89.112(a) , Table 1 (October 23, 1998). Therefore, the Drawworks Engine will be required to and does meet the applicable federal emission standards in 40 CFR §89.112(a), Table 1 (October 23, 1998) for the engine's size and installation date. The NOx emission limits for stationary diesel engines in §117.2110 were derived from the Tier sta ndards in 40 CFR Part 89. Therefore, the adopted exemption will not result in addi tional NOx emissions in the DFW area.”

And based on the above factors TCEQ determin ed that the adopted rule change will not negatively impact the status of the state's atta inment demonstration for the 1997 eight-hour ozone NAAQS, will not interfere with control measur es, and will not prevent reasonable further progress toward attainme nt of the ozone NAAQS.

What are the factors considered in explaining the 110(l) analysis? In sum, the factors pertaining to the 110( l), and triggering the petition request are:10  Actual testing has shown that the affected uni t will emit a maximum of 0.87 tons per year

which is below the minor source threshold limit for the DFW area.

 The affected unit complies with the emi ssion standards of 40 CFR §89.112(a), Table 1 (October 23, 1998).

 The affected unit operated le ss than 1000 hours per year.

 The affected unit is used exclusively fo r product testing and personnel training, and

limited service

 No such engines were relied upon for cr editable reductions for the SIP revision. Therefore, the adopted rulemaking will not result in a loss of any SIP creditable reductions for the DFW 1997 eight-h our ozone nonattainment area.

 Safety concerns due to installation of th e dynamometer and returning the engine to operational status subsequent to the emissions testing presents signifi cant safety hazards

associated with the removal of the drive tr ain and transmission, removal of the torque converter, and the placement and use of non-dedicated hoisting equipment on the rig

floor. For a comparison of the NOx emissions associated with the drawworks engine versus the DFW area major NOx source threshold limit see the chart below.

0.87 50

0 10 20 30 40 50 60

Drawworks Engine DFW ThresholdTons Per Year 

### NOx Emissions of Drawworks Engine vs. DFW Major Source Threshold Limit11 We have reviewed TCEQ explanation and reasons as to why expansion of this partial exemption does not adversely impact the status of the Texa s’ progress towards atta inment of the 1997 eighthour ozone NAAQS, will not interfere with cont rol measures, and will not prevent reasonable further progress toward attainment of the ozone NAAQS. We agree with their reasoning/rationale, and consider their 110(l) analysis adequate fo r the purposes of evaluation of the proposed revisions to 30 TAC Chapter 117. Ther efore, State’s submittal meets the applicable requirements of the CAA and EPA air quality regulations. TCEQ adopted the revisions to 30 TAC Chapte r 117. See the April 26, 2013 issue of Texas Register at 38 TexReg 2634. Also, see Appendix A of this document.12 Section 3 – Revisions to 30 TAC Chapter 117, Definition of Emergency – ERCOT

As stated earlier, section 3 of the TSD concerns our evaluation of Texas’ final rule adopted on May 14, 2013 as a revision to the Texas State Im plementation Plan (SIP) concerning 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No. 2012-025- 117-AI. We received this SIP submittal packag e, with a letter dated May 14, 2013, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, Subchapter A, Definitions, Section

117.10. This particular rule identifiers information is as follows:

Rule Project No. 2012-025-117-AI Chapter 117 Definition Update a nd Revisions to Chapter 101 Amendment to: §117.10 Date Adopted: April 10, 2013 Date Filed with the Secret ary of State: April 12, 2013 Date Published in the Texas Register : April 26, 2013 Date Effective: May 2, 2013

TCEQ adopted revision to 117.10(15)(A)(ii) to re ference the version of ERCOT Protocols of June 1, 2012. This revision will make the definition of emergency in 30 TAC Chapter 117.10(15) consistent with the ERCOT Nodal Protocols, Se ction 2: Definitions a nd Acronyms, and Section 6: Adjustment Period and Real Time Operations. TCEQ adopted revisions to 117.10(15 )(A)(vii) to include operation of an emergency generator as a part of ERCOT’s Emergency Response Service (E RS) program when the operation is in direct response to an instruction by ERCOT during the period of an ERCOT’s energy emergency alert. TCEQ adopted revisions to 117.10(15)(B)(ii) to limit the circumstances under which an emergency generator can provide po wer to the electric grid to only those operations that are part of ERCOT’s dispatch instruction dur ing and energy emergency alert. These provisions will provide for consistenc y among 30 TAC Chapter 117.10(15) definition of emergency, and ERCOT’s Nodal Protocols program. They also promote reliability during energy emergencies by allowing operation of generators fo r the purpose of selling power to the electric grid under limited circumstances. For a zonal ma p of ERCOT see Appendix C of this document.

The text of adopted revisions to 117.10(15) read:

(15) Emergency situation -As follows. (A) An emergency situation is any of the following:13 (i) an unforeseen electrical power failure from th e serving electric power generating system; (ii) the period of time that an Electric Reliabi lity Council of Texas, Inc. (ERCOT)-issued emergency notice or energy emergency alert (EEA) (as defined in ERCOT Nodal Protocols, Section2: Definitions and Acronyms (June 1, 2012) and issued as specified in ERCOT Nodal Protocols, Section 6: Adjustment Period and Real-Time Operations (June 1, 2012)) is applicable to the serving electric power ge nerating system. The em ergency situation is considered to end upon expiration of the em ergency notice or EEA issued by ERCOT;

(iii) an unforeseen failure of on-s ite electrical transmission e quipment (e.g., a transformer); (iv) an unforeseen failure of natural gas service; (v) an unforeseen flood or fire, or a life-threatening situation; (vi) operation of emergency generators for Federa l Aviation Administrati on licensed airports, military airports, or manned space flight control centers for the purposes of providing power in anticipation of a power failure due to severe storm activity; or

(vii) operation of an emergency generator as part of ERCOT's emergency response service (as defined in ERCOT Nodal Protocols, Section 2: Definitions and Acronyms (June 1,2012) if the operation is in direct response to an instruction by ERCOT during the period of an ERCOT EEA as specified in clause (ii) of this subparagraph.

(B) An emergency situation does not include: (i) operation for training purposes or other foreseeable events; or (ii) operation for purposes of supplying power for distribution to the elec tric grid, except as specified in subparagraph (A )(vii) of this paragraph. See the April 26, 2013 issue of Texas Register at 38 TexReg 2631.

Section 110(l) analysis: In the April 26, 2013 issue of Texas register at 38 TexReg 2624 TCEQ provided the following information to demonstrate why the adopted cha nges in 117.10(15) will not negatively impact the status of the state's pr ogress towards attainment with the 1997 eight-hour ozone NAAQS, will not interfere with control measures, and will not prevent reasonable further progress toward attainment of the ozone NAAQS. “Under the existing Chapter 117 rules, the period of time during an ERCOT-declared emergency is considered an emergency situa tion. The commission has interpreted this to mean that when demonstrating compliance with the Chapter 117 exemption criteria, participants in ERCOT's former EILS program were not required to include the hours of operation for generators operated during an ERCOT-declared emergency as nonemergency operation.”

TCEQ further stated that, “the adopted rulemaking prevents ERS program participants from potentially losing exemption status under Chapter 117 if they provide power to the electrical14 grid during an ERCOT-declared emergenc y. The adopted rulema king ensures that the changes made to ERCOT's new ERS program do not narrow the scope of what the commission currently considers an emergency situation. The period of time during an ERCOT-declared emergency is currently considered an emergency situation under the existi ng Chapter 117 rules. The adopted revisions to the definition of emergency situation limit th e circumstances under which a generator could provide power for distribution to the el ectrical grid to on ly those operations that are part of ERCOT's ERS program and in direct response to an instruction by ERCOT during the period of an ER COT energy emergency alert (EEA). Therefore, the adopted amendment does not increase the number of sources that could qualify for exemption under the Chap ter 117 rules or increase the frequency or duration of the operation during an em ergency situation. For these reasons, the commission determined that the adopted rulemaking will not negatively impact the status of the state' s attainment with the 1997 eight-hour ozone NAAQS and should not be considered as backsliding under the Federal Clean Air Act (FCAA).”

We have reviewed TCEQ explanation and reason as to why revision to 117.10 (15) does not adversely impact the status of the Texas’ pr ogress towards attainment of the 1997 eight-hour ozone NAAQS, will not interfere with control measures, and will not prevent reasonable further progress toward attainment of the ozone NAAQS. We agree with their reasoning/rationale, and consider their 110(l) analysis ade quate for the purposes of evalua tion of the proposed revisions to 30 TAC Chapter 117. Therefore, State’s submittal m eets the applicable requirements of the CAA and EPA air quality regulations.15 Appendix A

This appendix shows the change to text of the affected emergency engines provisions of Chapter 117 (before and after the revision) as a result of adopti on of the partial exemption of the Halliburton petition by TCEQ. The appendix is generated by Alan Shar as a part of the TSD development.

§117.2103. Exemptions. This division (relating to Dallas-Fort Worth Eight-Hour Ozone Nonattainment Area Minor Sources) does not apply to the following stationary engines, except as specified in §§117.2130(c), 117.2135(e), and 117.2145(b) and (c) of this title (relating to Operating Requirements; Monitoring, Notification, and Testing Requirements; and Recordkeeping and Reporting Requirements): (1) engines with a horsepower (hp) rating of less than 50 hp; (2) engines used in research and testing; (3) engines used for purposes of performance verification and testing; (4) engines used solely to power other engines or gas turbines during startups; (5) engines operated exclusively in emergency situations, except that operation for testing or maintenance purposes is allowed for up to 100 hours per year, based on a rolling 12-month average. Any new, modified, reconstructed, or relocated stationary diesel engine placed into service on or after June 1, 2007, is ineligible for this exemption. For the purposes of this subparagraph, the terms “modification”"modification'' and “reconstruction”"reconstruction'' have the meanings defined in §116.10 of this title (relating to General Definitions) and 40 Code of Federal Regulations (CFR) §60.15 (December 16, 1975), respectively, and the term “relocated”"relocated'' means to newly install at an account, as defined in §101.1 of this title (relating to Definitions), a used engine from anywhere outside that account; (6) engines used in response to and during the existence of any officially declared disaster or state of emergency; (7) engines used directly and exclusively by the owner or operator for agricultural operations necessary for the growing of crops or raising of fowl or animals; (8) diesel engines placed into service before June 1, 2007, that: (A) operate less than 100 hours per year, based on a rolling 12-month average; and (B) have not been modified, reconstructed, or relocated on or after June 1, 2007. For the purposes of this clause, the terms “modification”"modification'' and “reconstruction”"reconstruction'' have the meanings defined in §116.10 of this title and 40 CFR §60.15 (December 16, 1975), respectively, and the term “relocated”"relocated'' means to newly install at an account, as defined in §101.1 of this title, a used engine from anywhere outside that account; and (9) new, modified, reconstructed, or relocated stationary diesel engines placed into service on or after June 1, 2007, that: (A) operate less than 100 hours per year, based on a rolling 12-month average, in other than emergency situations; and (B) meet the corresponding emission standard for non-road engines listed in 40 CFR §89.112(a), Table 1 (October 23, 1998) and in effect at the time of installation, modification, reconstruction, or relocation. For the purposes of this subparagraph, the terms “modification”"modification'' and “reconstruction”"reconstruction'' have the meanings defined in §116.10 of this title and 40 CFR §60.15 (Decembe r 16, 1975), respectively, and the term16 “relocated”"relocated'' means to newly install at an account, as defined in §101.1 of this title, a used engine from anywhere outside that account .; and (10) new, modified, reconstructed, or relocated stationary diesel engines placed into service on or after June 1, 2007, that: (A) are used solely for product testing and personnel training; (B) operate less than 1,000 hours per year, on a rolling 12-month basis; and (C) meet the corresponding emission standard for non-road engines listed in 40 CFR §89.112(a), Table 1 (October 23, 1998) and in effect at the time of installation, modification, reconstruction, or relocation. For the purposes of this subparagraph, the terms "modification" and "reconstruction" have the meanings defined in §116.10 of this title and 40 CFR §60.15 (December 16, 1975), respectively, and the term "relocated" means to newly install at an account, as defined in §101.1 of this title, a used engine from anywhere outside that account.

§117.2130. Operating Requirements. (a) The owner or operator shall operate any unit subject to the emission specifications of §117.2110 of this title (relating to Emission Sp ecifications for Eight-Hour Attainment Demonstration) in compliance with those specifications. (b) All units subject to §117.2110 of this title must be operated so as to minimize nitrogen oxides (NO

X ) emissions, consistent with the emission control techniques selected, over the unit's operating or load range during normal operations. Such operational requirements include the following. (1) Each unit controlled with post-combustion control techniques must be operated such that the reducing agent injection rate is maintained to limit NO

X concentrations to less than or equal to the NO

X concentrations achieved at maximum rated capacity. (2) Each stationary internal combustion engine controlled with nonselective catalytic reduction must be equipped with an automatic air-fuel ratio (AFR) controller that operates on exhaust O 2 or CO control and maintains AFR in th e range required to meet the engine's applicable emission specifications. (3) Each stationary internal combustion engine must be checked for proper operation according to §117.8140(b) of the title (relating to Emission Monitoring for Engines). (c) No person shall start or operate any stationa ry diesel or dual-fuel engine for testing or maintenance of the engine between the hours of 6:00 a.m. and noon, except: (1) for specific manufacturer's recommended testing requiring a run of over 18 consecutive hours; (2) to verify reliability of emergency e quipment (e.g., emergency generators or pumps) immediately after unforeseen repa irs. Routine maintenance such as an oil change is not considered to be an unforeseen repair; or (3) firewater pumps for emergency response trai ning conducted in the months of April through October.

§117.2135. Monitoring, Notification , and Testing Requirements. (a) Oxygen (O

2 ) monitors. If the owner or operator installs an O

2 monitor, the criteria in §117.8100(a) of this title (relating to Emission Mon itoring System Requirements for Industrial, Commercial, and Institutional Sources) should be considered the appropriate guidance for the location and calibration of the monitor.17 (b) Nitrogen oxides (NO

X ) monitors. If the owner or operator installs a continuous emissions monitoring system (CEMS) or predictive emissions monitoring system (PEMS), the CEMS or PEMS must meet the requirements of §117.8100(a) or (b) of this title. If a PEMS is used, the PEMS must predict the pollution emissions in the units of the applicable emission limitations of this division. (c) Monitor installation schedule. Installation of monitors must be performed in accordancewith the schedule specified in §117.9210 of this title (relating to Compliance Schedule for DallasFort Worth Eight-Hour Ozone Nonattainment Area Minor Sources). (d) Testing requirements. The owner or operator of any unit subject to §117.2110 of this title (relating to Emission Specifications for Eight-Hour Attainment Demonstration) shall comply with the following testing requirements. (1) Each unit must be tested for NO

X , carbon monoxide (CO), and O

2 emissions. (2) One of the ammonia monitoring procedures specified in §117.8130 of this title (relating to Ammonia Monitoring) must be used to demonstrate compliance with the ammonia emission specification of §117.2110(h)(2) of this title for units that inject urea or ammonia into the exhaust stream for NO

X control. (3) For units not equipped with CEMS or PEMS, all testing must be conducted according to §117.8000 of this title (relating to Stack Testing Requirements). In lieu of the test methods specified in §117.8000 of this title, the owner or operator may use American Society for Testing and Materials (ASTM) D6522-00 to perform the NO

X , CO, and O

2 testing required by this subsection on natural gas-fired reciprocating engi nes. If the owner or operator elects to use ASTM D6522-00 for the testing requirements, the report must contain the information specified in §117.8010 of this title (relating to Compliance Stack Test Reports). (4) Test results must be reported in the units of the applicable emission specifications and averaging periods. If compliance testing is based on 40 Code of Federal Regulations Part 60, Appendix A reference methods, the report must contain the information specified in §117.8010 of this title. (5) For units equipped with CEMS or PEMS, the CEMS or PEMS must be installed and operational before testing under this subsecti on. Verification of operational status must, at a minimum, include completion of the initial monitor certification and the manufacturer's written requirements or recommendations for installation, operation, and calibration of the device. (6) Initial compliance with the emission specifications of §117.2110 of this title for units operating with CEMS or PEMS must be dem onstrated after monitor certification testing using the NO

X CEMS or PEMS. (7) For units not operating with CEMS or PEMS, the following apply. (A) Retesting as specified in paragraphs (1) - (4) of this subsection is required within 60 days after any modification that could reasonably be expected to increase the NO

X emission

rate. (B) Retesting as specified in paragraphs (1) - (4) of this subsection may be conducted at the discretion of the owner or operator after any modification that could reasonably be expected to decrease the NO

X emission rate, including, but not limited to, installation of postcombustion controls, low-NO

X burners, low excess air operation, staged combustion (for example, overfire air), flue gas recirculation, and fuel- lean and conventional (fuel-rich) reburn. (C) Stationary, reciprocating internal combustion engines not equipped with CEMS or PEMS must be periodically tested for NO

X and CO emissions as specified in §117.8140(a) of this title (relating to Emission Monitoring for Engines).18 (8) Testing must be performed in accordance with the schedule specified in §117.9210 of this title. (9) All test reports must be submitted to the executive director for review and approval within 60 days after completion of the testing. (10) The owner or operator of an affected unit in the Dallas-Fort Worth eight-hour ozone nonattainment area must submit written notif ication of any CEMS or PEMS relative accuracy test audit (RATA) or testing required under this section to the appropriate regional office and any local air pollution control agency having jurisdiction at least 15 days in advance of the date of RATA or testing. (e) Run time meters. The owner or operator of any st ationary diesel engine claimed exempt using the exemption of §117.2103(5), (8), (9), or ( 910 ) of this title (relating to Exemptions) shall record the operating time with a non-resettable elapsed run time meter.

§117.2145. Recordkeeping and Reporting Requirements.

(a) Recordkeeping. The owner or operator of a unit subject to §117.2110 of this title (relating to Emission Specifications for Eight-Hour Attainment Demonstration) shall maintain written or electronic records of the data specified in this subsection. Such records must be kept for a period of at least five years and must be made available upon request by authorized representatives of the executive director, the United States Environmental Protection Agency, or local air pollution control agencies having jurisdiction. The records must include: (1) for each unit using a continuous emission monitoring system (CEMS) or predictive emission monitoring system (PEMS) in accordance with §117.2135(b) of this title (relating to Monitoring, Notification, and Testing Requirements) monitoring records of: (A) hourly emissions for units complying with an emission specification enforced on a block one-hour average; and (B) daily emissions for units complying with an emission specification enforced on a rolling 30-day average. Emissions must be recorded in units of: (i) pounds per million British thermal units (MMBtu) heat input; and (ii) pounds or tons per day; (2) for each stationary internal combustion engine subject to §117.2110 of this title, records of: (A) emissions measurements required by §117.2130(b)(3) of this title (relating to Operating Requirements); and (B) catalytic converter, air-fuel ratio controller, or other emissions-related control system maintenance, including the date and nature of corrective actions taken; (3) records of carbon monoxide (CO) measurements specified in §117.2130(b)(3) of this title; (4) records of the results of initial certification testing, evaluations, calibrations, checks, adjustments, and maintenance of CEMS, PEMS, or steam-to-fuel or water-to-fuel ratio monitoring systems; and (5) records of the results of performance testing, including the testing conducted in accordance with §117.2135(d) of this title. (b) Records for exempt engines. The following records must be maintained for at least five years and must be made available upon request to representatives of the executive director, the United States Environmental Protection Agency, or any local air pollution control agency having jurisdiction.19 (1) Written records of the number of hours of operation for each day's operation must be mademaintained for each engine claimed exempt under §117.2103(5), (8), (9), or ( 910 ) of this title (relating to Exemptions) or §117.2130(b)(3) of this title. In addition, for (2) For each engine claimed exempt under §117.2103(5) of this title, written records must be maintained of the purpose of engine operation and, if operation was for an emergency situation, identification of the type of emergency situation and the start and end times and date(s) of the emergency situation. The records must be maintained for at least five years and must be made available upon request to representatives of the executive director, the United States Environmental Protection Agency, or any local air pollution control agency having jurisdiction. (3) For each engine claimed exempt unde r §117.2103(10) of this title, records must be maintained of manufacturer's specifications or te st data sufficient to demonstrate compliance with the emission standard specified in §117.2103(10)(C) of this title. (c) Records of operation for testing and maintenance. The owner or operator of each stationary diesel or dual-fuel engine shall maintain the following records for at least five years and make them available upon request by authorized representatives of the executive director, the United States Environmental Protection Agency, or local ai r pollution control agencies having jurisdiction: (1) date(s) of operation; (2) start and end times of operation; (3) identification of the engine; and (4) total hours of operation for each month and for the most recent 12 consecutive months.20 

### Appendix B

40 CFR § 89.112 Oxides of nitrogen, carbon monoxide, hydrocarbon, a nd particulate matter exhaust emission standards.

(a) Exhaust emission from nonroad engines to wh ich this subpart is applicable shall not exceed the applicable exhaust emission standards contained in Table 1, as follows:

Source: http://www.ecfr.gov/cgibin/retrieveECFR?gp=&SID=50d37219466b902c5befd379cfd0a192&n=40y21.0.1.1.3&r=PART&ty =HTML#40:21.0.1.1.3.2.1.12 (URL dating June 13, 2013)21 

### Appendix C ERCOT Zonal Map showing the areas under E RCOT’s jurisdiction in State of Texas.

Source: http://www.ercot.com/news/mediakit/maps/ (URL dating June 5, 2013)22 

### INDEX

110(l) analysis .................................. 8, 11, 13, 14 117.10 .......................................... 3, 7, 12, 13, 14 117.1020 .................................................... 3, 4, 5 117.1120 .................................................... 3, 4, 5 117.1220 .................................................... 3, 4, 5 117.2103 .................................. 6, 7, 8, 15, 18, 19 117.2130 ................................ 6, 7, 15, 16, 18, 19 117.2135 .................................. 6, 7, 8, 15, 16, 18 117.2145 ............................................ 6, 8, 15, 18 117.3020 ........................................................ 3, 4 117.9800 .................................................... 3, 4, 5 30 TAC Chapter ................... 3, 4, 5, 6, 11, 12, 14 40 CFR §89.112(a) ................... 7, 8, 9, 10, 15, 16 Alan Shar ......................................................... 15 Appendix A .......................................... 11, 15, 17 Appendix B ...................................... 7, 12, 20, 21 Appendix C ................................................ 12, 21 chart ................................................................. 10 Control of Air Pollution from Nitrogen Compounds ...................................... 1, 2, 6, 12 Definition ..................................................... 1, 12 Diesel ............................................................. 1, 6 Drawworks ................................................. 6, 7, 9 Emergency ....................................................... 12 Engine .................................................... 1, 6, 7, 9 EPA ...................................... 1, 4, 7, 8, 11, 14, 15 ERCOT ...................................... 1, 12, 13, 14, 21 exempt ............................................... 7, 8, 18, 19 Halliburton ........................................... 1, 6, 9, 15 NAAQS ........................................... 9, 11, 13, 14 NOx ................................................................. 10 Petition ........................................................... 1, 6 remove ............................................................... 4 Rule Project No ............................... 1, 2, 4, 6, 12 SCT ................................................................ 3, 4 Section 1 ........................................................ 2, 3 Section 2 ............................................ 2, 6, 12, 13 Section 3 ...................................................... 2, 12 SIP ..................................................................... 2 State Implementation Plan ....................... 2, 6, 12 System Cap Trading .................................. 1, 3, 4 TCEQ ........... 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15 Texas Register ..................... 4, 5, 6, 7, 11, 12, 13 threshold limit .................................................. 10 TSD ................................................ 2, 4, 6, 12, 15