TNRCCIENVIRIl1ENTAL 

### Fax:S12-239-0606 Nov 

### s 2001 17:13 P.02

SUPPLEMENT TO 1993,1996, and 1998 STATEMENTS OF LEGAL AUTHORITY FOR

TEXAS'S FEDERAL CLEAN AIR ACT TITLE V OPERATING PERMIT PROGRAM State ofTens Office ofthe Attorney General INTRODUCTION This 

### is the 

### final statement ofthe 

### Attorney General ofTexas concerning Texas"s authority to carry out

### its 

### state

### program to 

### implement a federal 

### Clean 

### AirAct Title V operating pexmit program in accordance with Part 70 ofTitle 40, Code ofFederal Regulations (40 C.F.R.). The program will be referred to hereinafter as the Part 70 Operating Pennit Program. 1 The fonn ofthis statement is based on the United States Environmental Protection Agency's (EPA's) Title VModelAttorney General Opinion ofJWle I, 1993.2 The Texas Natw:al 

### Resource Conservation Commission (TNRCC or Commission) has submitted three previous 

### Attorney General statements to certify authorities required for its Part 70 Operating Pcnnit 

### Program. The 

### TNRCC submitted the first ofthese on 

### November 12, 1993 (the 1993 

### Statement). 

### A copy ofit

### is attached hereto 

### as Attachment A. The 

### 1993 Statementcomprehensively covered the requirements for certification listed 

### in 40 C.F.R. section 70.4(b X3) and was also 

### based on the 

### model BP A Title 

### V certification document. The 

### two additional 

### Attorney General statements 

### addressed specific issues 

### raised by the 

### EPA and revised the 1993 

### Statement for subsequent
. modifications to Texas's Part 70 Operating Permit

### Program.) 

## The TNRCC submitted the first of



### ITitle 

### V ofthe federal 

### Clean Air Act is codified at 

### 42 U.S.C. §§ 7661-7661f. 

### 2Tho BPA model opinion is organized into sections for each area ofcertification. Each section 

### in this Supplement document begins with a statement ofauthority based on the EPA model opinion. lS oc6on 70.4(i)(2){i) of40 C.P.R.**r¢q\li~** n l;ta.te to !:ubrnit 3. :modified Attorney General statement ifit revises its operating pennitregulations.**T~CJENVIRlJtENTFl.** 

### Fax:S12-239-0606 Nov S 20)1 17:13 

### P.03

these on 

### May 6, 1996 (the 

### 1996 

### Statement). A 

### copy ofit is attached hereto as AttachmentB. It 

### includes a letter ofcommitmcntby 

### the Commission's Executive Director and Geoem1 

### Counsel. The TNRCC submitted the 

### second additional 

### A.f:tomey GenecaI statement on

### August 6. 1998 (the 1998 Statement) as a supplement to 

### the 1993 and 

### 1996 Statements. A 

### copy ofit 

### is attached 

### hereto as 

### Attachment C. 

### 'Ibis statement incorporates the contents of

### the earlier statements and does Dot

### repeat

### the entire contents ofthe 

### 1993, 1996, or 1998 

### Statements 

### butinstead

### notes whethec legislative or regulatory changes mandate revision ofthose statements' analyses. STATEMENT OF THE ATTORNEY GENERAL As the 

### Attorney General ofthe 

### State ofTexas, in 

### accordance with 

### section 502(d) ofthe federal 

### Clean 

### Air Act (eAA) 

### as amended and 

### BP Aregulations.4

### I certify that the 

### laws of"the State ofTexas. including the Texas Clean 

### AirAct (TCAA). Texas Health and 

### Safety Code Chapter 

### 382, provide adequate authorityto carry 

### out all 

### aspects oftheprogram submitted 

### on June 

### 1, 200I, by the 

### TNRCC to the EPA for final 

### approval to administer and enforce Texas s Part 70 

### Operating Permit Program 

### as required by 

### Title V oCthe eM. 

### The State's Part 70 Operating 

### Pennit

### Program has 

### beenpreviously submitted and interimlyapproved by the EPA. On August 23, 1993, tho TNRCC adopted its inItial Port 70 

### Operating Permit Program 

### regulations in 30 

### Texas Administrative Code (T.AC.) 

### Otapter 122,

442 U.S.C. 

### § 7661a(d); 40 C.F.R § 70.4(b)(3). 2TNRCC/ENVIRll'1ENTAL 

### Fax:S12-239-0606 Nov S 2001 17:13 

### P.04

Federal Openting Permits.s On SeptEmber 17, 1993, and iu two supplemental**documen~s** the TNRCC submitted its proposed. Part 70 Operating Permit Program to the EPA.' On Iune 25, 1996, the EPA promulgated 

### its.first interim approval ofthe program. The EPA noted continuing deficiencies'

### in the 

### program and called for their correction prior to full program approval.7 On October IS, 

### 1997, the Commission adopted revisions to 30T.A.C. Chapter 122 

### in partto address


### some ofthe deficiencies noted 

### by the 

### EPA in 

### its prior

### notices.' 

### On three occasions the EPA has 

### extended its 

### interim approval ofTexas's Part 10 

### Operating Permit 

### Program. On August 29, 

## 1m, the EPA extended the 

### interim approval ofthe program until October 1, 1998.9 Again, on July 21, 1998, the EPA extended the interim approval to June 1. 2000. 10 On February 14. 2000, the EPApublished another extension that would have extended interim program approval to June 1,2002. 11 On March 29, 2000, however, the EPA published a withdrawal ofthe February 14, 2000, extension based on an adverse comment that the extension was contrary to the express



### $See 18 Tex. Reg. 5989 (1993). 

## 'On June 7, 1995. EPApublished 

### aproposal to 

### give the Commission's program 

### interim approval 60 Fed. Reg. 30,037 (1995). 

### In thatproposaL the EPA noted several 

### deficiencies that would require conootion prior to the CommilS6ion's obtaining both interim and tUll pr<>gnm approval. The 

### Commission responded 

### in a letter

### dated. October 3, 1995. 7See 61 Fed. 

### R.eg. 32,693 (1996). 

### 'See 22 Tex. Reg. 

### 10,677 (1 997Xcodi1ied as amendment to 30 T.A.C. Chapter 122). 962 Fed. Reg. 45,732 (1997). 1063 

### Fed. Reg. 40.053 (1998). 

### 1165 Fed. 

### Reg. 7290 (2000). 3TNRCC/El\NlROMENTAl 

### Fax:S12-239-D606 Nov S 

### 2001 17:13 P.DS

provisions ofthe 

### CAA. 12 

### Subsequently, on

### May 22, 2000, the 

### EPA published notice 

### that all states with interim approval would have untilJune 1, 2001. to submit a program for full program 

### approval and that the EPA would take 

### action on those submittals byDecember 1,2001.)) 

### Pursuant to 40 C.F.R. section 70.4(3), the 

### Attorney General is to 

## certifY that the 

### laws of Texas provide adequate legal authority for Texas to carry out all aspects of its submitted Part 

### 70 Operating Permit 

### Program 

### in accordance with the requirements ofTitle V ofthe eAA and 40 

### C.F.R. Part 70. Each 

### enumeratedrequirement is 

### listedbelow 

### in its own section with 

### the specific requirement restated 

### from the 

### BPAModel Opinion. L AUfHORITY TO ISSUE PERMITS 14 State 

### law provides authority for the

### TNRCC to issue operating permits to 

### all air

### pollution
sources within the State that are required to have petmits pursuantto 

## eAA section 502(a), Title 

### 42, United 

### States Code (42 

### U.S.C.) section 

### 7661a(a), and 40 C.F.R. section 70.3 and to incoIpOrate 

### into permits 

### and assure compliance with 

### each applicable requirement ofthe 

### eAA 

### and the teqUirements of40 C.F.R. Part 70. State law also provides authority to issue opera.ting permits for solid waste 

### incineration units cornbusting municipal solid waste PUI'5llallt to**C~** 

### Section 129(e), 42 U.S.C. section 7429(e), that assure compliance with 

### all applicable requ.jrements of the CAA and the requirements of40 C.F.R. Part 70.

12<)5 Fed. Reg. 16,523 (2000). 1365 Fed. Reg. 32,035 (2000).
14This heading, like each other heading below 

### that begins 'With a roman numeral, crossrefers to a section 

### in the 1993 Statement with the same heading. 4Tl'RCC/ENVIRCtENTAL 

### Fax:512-239-0606 Nov 2001 17:13 P.06**---~--**

Fedgal Authority: CAA 

### §§ 129(e), 502(a)-(b), 503, 504(a) (42 U.S.C. §§ 7429(e), 7661a(a)-(b), 766lb, 7661C(a». 40 C.F.R. §§ 70.4(bX3)(i), 70.4(b)(3Xiv), 70.4(bX3)(v), 70.5(a), 70.6, 70.7(b). CItation ofState

## Laws and Regulations; TEX. HBALm & SAFBTYCOOE 

### §§ 382.051,382.0513,382.0514,382.054,3820541, 382.0543,382.056,382.0561,382.0562,382.0563,382.0564. 

### TEx. WATBR. CODE § 7.302 (replaces fonner TEx. H£AL1H & SAFBTY CODE § 382.059 (repealed». 30 T.A.C. Chapter 122. The analysis 

### in this section is unchanged except for a change to the scope ofthe applicable requirements covered by the State's Part 70 OperatingPennit Program. As 

### discussed in Section VIII below, 

### in 2001 the TNRCC amended 

### its definition ofapplicable

### requirement in 30 T.AC. Chapter 122 to be consistent with40 C.F.R Part 70. ll. AUTHORITY TO ISSUE PERMITS TO NONCOMPLYING SOURCES State law provides authority for the 

### TNRCC to issue 

### pemrlts to 

### sources that are not 

### in compliance with applicable requirements and to include «::omplianoe SGhodulcs in permits to bring
sources into compliance. Federal Authority: CAA §§ 502(bX5)(A), 504(a) (42 U.S.C. §§ 7661a(bX5XA), 7661c(a». 40 C.F.R. §§ 70.5(c)(8), 70.6(cX3).


### 5

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Citation ofState Laws and Regulations: 

### TBx. 

### HEALm & SAFETY CoDE 

### § 382.051(c). 30 T.AC. §§ 122.t32(e), 122.142(e). 

### The analysis 

### in this section is not changed. 

# m. PERMIT AGENCY l\1EMBERSHIP AND CONFLICTS OFINTEREST State law provides 

### that no State board orbody 

### that approves operating permits, either 

### in the first instance orupon 

### appeal, shall 

### be constituted ofless than a majority ofmembers who 

### represent the 

### public interest and

### who do 

### not derive a significantportion of their

### income from 

### persons subjeet to operating permits. 

### State Jaw also 

### provides that any

### potential conflicts of 

### interest by members ofsuch 

### board orbody or the head ofany executive agency with similar powers be adequately disclosed. State law 

### a100 provides that no 

### pemUt for a solid waste 

### incinemtion unit

### may be 

### issued by 

### an agency, instIumentality orperson that is 

### also responsible, 

### in whole or in. part, for the design and construction or opention ofthe 

### unit 

### Federal Authority: 

### eAA §§ 

### 128(aXl)-(2), 129(e) 

### (42 U.S.C. §§ 

### 7428(a)(I)-(2), 7429(e». 40

### C.F.R 

### § 70.4(bX3)(iv). Citation o(State LaWQ pnd R.egulations: 

### TBX. WATER CODE 

### § 5.052(a), 5.053. 5.059. 

### TBx.1IBALrn& SAFETY C<>DB § 382.0591(b). 

### TEx. GoV'TCODE, Chapter 572. The analysis in this section is unchanged.

6

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### 2001 17:13 P.08



### IV. PERMlT FEES State law provides authority for the TNRCC to assess and collect annual pennit fees from
sources within the State that are subject to the 

### requirements ofTitle V ofthe CM and 40 C.F.RPart 

### 70, in an amoWlt sufficient to roverall reasonable 

### direct and indirect costs required to 

### develop, administer, 

### and enforce the State's Title V program. Fedqal Authority; eAA 

### § 502(b)(3)(A) (42 U.S.C. 

### § 7661a(b)(3)(A». 40 C.P.R. §§ 70.9(a)-(d). Citation ofStateLaws and Regulations: 

### TEx. REALm 

### & 

### SAF'BTY CoDE 

### §§ 382.0621, 382.0622(b)-(c). 30T.A.C. § 101.27. 30 

### T.A.C. §**122.l43(lO)~** The analysis in 

### this section 

### is not changed. 

### V. PERMIT TERM State law generally provides authority to issue operating permits for a 

### fixed 

### teem not to 

### exceed five years. State law also 

### provides authority to 

### issue pennits with 

### acid

### rainprovi6ions for

a fixed term offive years. Federal Authority: 

### eAA §§ 129(e), 408(a), 502(b)(5){B) (42 

### U.S.C. §§ 7429(c), 76S1g(a), 7661a(b)(5)(B». 40 C.F.R. §§ 70.4(b)(3)(i), 70.6(aX2), 72.7O(b), 72.72(a.).

7

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### P.09

Citation ofState 

### Laws and Regulations: Tlpc. HEALTH & SAFETY CODE 

### §§ 382.0541 (a)(5), (12), 

### 382.0S43(a). 30 T.A.C. §§ 

### 122.143(2). 122.201{d), 122.241.122.410. 

### The analysis in 

### this 

### section is not changed. VI. 

### MONITORING, RECORDKEEfING, AND REPORTING State lawprovides authority 

### to incorporatemonitoring, reeoidkeepin& reporting, and 

### compliance certificationrequirements into operating 

### permits 

### consistentwith 40 C.F.R. 

### section 70.6. State law provides authority to 

### incoxporate into the 

### pennitperiodic monitoring ortesting 

### requirements wherethe existing State Implementation Plan or 

### otherapplicable requirement does 

### not contain such a requirement, 

### consistentwith 40 C.F.R section 70.6(a)(3)(i)(B). Fedexal Anthority: CAA §§ 

### S02(b)(2), 503(b)(2), 504(a)-(c) (42 U.S.C. §§ 

### 7661a(b)(2), 

### 7661b(bX2), 7661o(a)-(c». 40 C.F.R. §§ 

### 70.4(bX3Xii), 70.6(aX3), 70.6(c)(l}, 70.6(cX5). Citation ofStateLaws and 

### Regulations: 

### TEx.lIEALm&SAFETYCoDE §§ 

### 382.016. 382.021. 382.0514. 30 T.A.C. §§ 122.140, 122.142(0), (h). 122.144, 12.2.145, 122.146. 122.600, 122.602, 122.604,122.606,122.608,122.610, 122.612, 122.700,122.702,122.704, 

### 122.706, 122.708, 122.710,122.712,122.714,122.716. 

### 30 T.A.C. §§ 

### 101.8, 101.9. The 

### analysis in 

### this section is 

### not changed.

8

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__ P_._I0

_

VD. INSPECTIONIENTRY 

### AUTHORITY State law provides authorityto incolpOI"ate into pennits inspection and entIy 

### requirements consistent with 40 C.F.R. section 70.6{c)(2)
.



### . Federal Authority: CAA § 504(0) (42 

### U.S.C. §7661c(c». 

### 40 C.F.R. § 70.6{c)(2). Citation ofState Laws and Reeutmions: TEx.1IBAL'ni & SAFElY CoDE §§ 382.015.382.022. 30 T

## .A.c. §§ 122.143(3). (8), 122.144. 

### The analysis in 

### this section is not 

### changed. VIIL INCORPORATION OFALL 

### APPLICABLE REQUIREMENTS INTO 

### PERMIT State lawprovides authority to incoxporate into an operating permit, upon**i~ce'** or 

### renewal,

# an applicable requirements as defined 

### in 40 

### C.F.R. section 70.2 and as provided generally 

### in the CM 

### and 40 C.F.R. Part 70. 

### Federal Authority: eAA §§ S02(b)(S)(C), 504(a) (42 U.S.C. §§ 7661a(b)(5)(C), 7661c(a»). 40 C.P.R. §§ 70.4(b)(3X v). 70.6(a).**~tation** ofState Laws and Regulations: 

### TBx. HEALTH & SAFETY CODE §§ 382.0541,382.0542,382.0543. 30 T.A.C. §§ 122.10(2), 122.131, 122.132, 122.136, 122.142. I22.201 (a), 122.231, 122.231(a), 122.241. The analysis in this section is changed as follows. 9TNRCCJENVIRI1'IENTfL 

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### 2001 17:14 P.l1

Section 

### 70.4(bX3Xv) requires Stateprograms to ''incorporate into pennits

## an applicable requirements and requirements ofthis part." 

### In the 1993 Statement, this**secti~** discussed whether ornot a state's minornew source review permittingprogram (State Minor NSR) is an 

### applicable requirement that 

### must be 

### included in 

### an operatingpermit IS As 

### discussed previously, in 1996 the EPA 

### interimly approved Texas's Part 70 OperatingPermit 

### Program without State 

### MinorNSR included as an applicable requirement. On 

### June 3,2001, the 

### Commission's final 

### revisions to 30 T.A.C. Chapter 122 took effect. 16 

### These revisions modifiedthe 

### definition ofapplicable requirementto include 

### State Minor

### NSR.17 Applicablerequirements ofthe submitted 

### program now include all ofthe major 

### and minornew 

### sourcereview requirements of

### 30 T.AC. Chapter 116, Control of Air Pollution byPemrlts for New Construction orModification, and 30 T.A.C. Chapter 106, Permits by Rule. The revised rules 

### provide theprocedw-es for incorporating State MinorNSR 

### into existing permits 

### and pending

### permit applications. Pursuant 

### to 30 T.AC. section 122.142(bX3). 

### ifthe 

### TNRCC did not authorize the initiation of public notice for an operating pernrit by 

### June 3, 2001, the 

### issued permit

### must include all required preconstruction 

### authorizations, including State Minor 

### NSR Permits for 

### which'the TNRCC did authorize the initiation ofpublic notice by

### June 3.



### UIn the June 

### 7, 1995, EPA notice and 

### later 

### in the June 25. 

### 1996, EPA notice. EPA noted 

### that the 1993 

### version of30 T.A.C. Chapter 122 did Dot

### properly ad<kess State 

### MinorNSR as an applicable requirement 

### Furthennore, the EPA has stated in

### both the 

### June 7, 1995, and June 25. 

### 1996, EPA notices that 

### the State MinorNSR issue mustbe addressed in order

### fOfthe Commission to gain full program approval.**J~6** Tex. Reg. 

### 3791-3807 (2001). 1726 Tex. Reg. at 

### 3792. 10TI\RCC/ENVIRll'1ENHL 

### Fax:S12-239-0606 Nov c?OOl 

### 17:14 P.12

2001. will not include State Minor NSR 

### at initial 

### issuance. However, pmsuant to 30 T.A.C. section 122.231, the TNRCC will institute proceedings to reopen previously 

### issued operating permits to incorporate the excluded State MinorNSR permits, as soon as practicable, 

### but no later 

### thanpennit

# renewal. IX. PERMIT REOPENING State lawprovides authority to revise pennits with 

### remaining tenns ofthree ormore years to 

### incoxporatenew applicable requirements that become**effeeti'~e** sfterissuance ofthepermit. State lawprovides authority to 

### reopenpermits 

### when additional acid rain 

### requirements become applicable, regardless ofthe 

### remaining permit

### term. State lawprovides authority to 

### terminate, modify. orrevokepermits for at any time during the pennit term consistent with 40 C.F.R. 

### section 70.7(f)-(g). Federal Authority; eAA 

### §§ 502(b)(5)(D), (bX9) (42 U.S.C. §§ 7661a(b)(S)(D), (b)(9». 40 C.F.R. §§ 70.4(b)(3Xvi). 70.6(a)(6)(rli). 70.7(%). Citation ofStateLaws and Regulations: TEx. HSALnI & SAFETY CoOB §§ 382.0541(b), 382.0541(aX7), 382.0542(bX4). fix. WATBRCoDE § 7.302. 30 T.A.C. §§ 122.143(7)-(8), 122.231, 122.414(a)(4). 

### The analysis 

### in 

### this section is not changed. X. OPERATIONAL

### FLEXIBILITY State law provides authority to issue pennits that allow changes within a pennitted facility without requiring a permit revision ifthe changes are not modifications under any 11TI\RCC/ENVIRll'£NTFl. 

### Fax:S12-239-Q606 I'tJv 

### s 2001 17: 14 

### P.13

provision ofTitle I ofthe eM**an~** the changes do not exceed the emissions allowable under the**penni~** provided that the source provides at least seven days (or fewer days ifthe State requires less time 

### in an emergency) written notice to 

### the State and to EPA. State law provides authority for pemrlts 

## to include tenns and conditions for

### reasonably anticipated alternative 

### opetating scenarios in pmnits.. 

### Federal Authority: CM § 502(bXIO) (42 U.S.C. § 1661a(b)(lO». 40 C.F.R. 

### §§ 70.4(bX12), 70.6(aX9). Citation ofState Laws and Regulations: 

### TEx. HEALrn & SAFETY CQDE §§ 

### 382.0S11(c). 382.0S41(aX3XA). 30 T.A.C. 

### § 122.222. The analysis in 

### this seclion has changed as follows. In the June 7. 1995, EPA notice, EPA stated that the operational 

### flenbility section of

### 30 T.A.C. Chapter 122, as submitted in 1993, 

### was inconsistent with 40 C.F.R. section 70.4(b)(12) 

### and eM section 502(bXIO), 42 U.S.C. section 7661a(bXl0), because it could

### potentially allow modifications that violate what EPA considetS 

### applicable requirements. II 

### In addition, 

### in the June 25,1996, EPA 

### notice, EPA stated that for**Te~aB** to receive full approval, 30 T.A.C. Chapter 122 must be consistent with the version of40 C.F.R. Part 70 

### in effect at the time offull program submittal. IP In 1997, the Commission deleted the operational 

### flexibility rules in 30 T.AC. Chapter 122, in response 

### to an

IllSee 60 Fed. Reg. 30,044 (1995) 19See 61 Fed. Reg. 32,696 (1996). 12TJ'.RCC/ENVIRCtIENTAL 

### Fax:S12-239-G606 Nov 

### S 2001 17:14 P.14

August 31, 1995,.EPA rule proposal, in which EPA proposed to delete the definition of "Section S02(bX10) changes" from 40 C.F.R section 70.2 

### and to delete the reference to "Section 502(bXlO) changes" in 40 C.F.R. section 70.4(b)(l2). The August 31, 1995.**pro~** however, 

### waS not finally promulgated, so 

### the Commission

## revised 30 T.A.C. Chapter 122 in 2001 to be consistent with provisions in 40 C.F.R section 70.4{b)(12). 

### XL PERMITMODIfiCATIONS State law 

### provides authority 

### to 

### process permit modifications in 

### a manner

### that conforms to, or is substantially equivalent to, the procedures set forth under40 C.F.R. section 70.7(e)
.

.Federal Authority: CAA § 502(bX6) (42 U.S.C. 

### § 7661a(bX6». 

### 40 C.F.R.. §§ 70.4(bX13), 70.7(e). Citation ofState Laws and Regulations: 

### TEx. HBALm & SAFETY CODE §§ 382.0S1(a), 382.056, 382.0561,382.0562.382.0563. 30 T.A.C. §§ 122.210, 122.215-122.218, 122.219, 122.221,122.312, 122.320, 122.330, 122.322, 122.340. 122.345, 122.350, 122.360. 

### The analysis in this 

### sectionis unchanged exceptto note that 2001 revisions to 30 TAC. Chapter 122 significantly roviaod the permitrevision process to be consistent with 40 C.F.R.. section 70.7. 

### XIL PUBLIC PARTICIPATION State law provides authority for procedures to allow public participation in the lNRCC's action to issue ot' deny an operating pennit. to modify a pennit (except as provided in sections 70.7(eX2) and (3», or to renew a pennit. Public participation under State law includes the 13Tf'.RCC/ENVIRll"ENTfl.. 

### Fax:512-239-0606 Nov 2001 17:14 P.15



### oppOrtunity for public comment and the 

### opportunity for a heating on 

### draftpermits 

### in accordance with the requirements ofthe 

### eM and 

### 40 C.F.R. section 70.7(h). State law provides for affected states to review pennit applications 

### in. accordance 'With the eM and 40 C.F.R. section 70.8(b). Federal Authoritx: 

### CM §§ 

### 502(bX6), SOS(aX2) (42 

### U.S.C. §§ 7661a(bX6), 7661d(aX2». 4OC.F.R 

### §§ 70.7(1), 70.8(b). Citation ofState Laws and Regulations: TBx.lIBALrn & SAFETY CODB §§ 382.056,382.0561,382.0562,382.0563,382.0564. 30 T.A.C. 

### §§ 122.312.122.320,122.330,122.322,122-340,122.345,122-350,122.360. The analysis in this section is unchanged except as follows. Recent Texas legislation revised the requirements in 

### TeAA section 382.056, concerningpUblic notice for operating permits.20 The legislation expanded the information that a notice must contain, 

### to include information about availability ofdocuments regarding the permit application.



# .xm. PUBLIC ACCESS TO PERMIT INFORMATION State lawprovides authority to make available to the pUblic any permit application, compliance plan. penni!, 

### and monitoring 

### and compliance certification**repo~** mccept for information**CDtitl~** to confidential treatment. State law provides that the contents ofan 

### operating 

### pernrit shall not be entitled 

### to confidential treatment



## .. 20Act ofMay 30,1999, 76th Leg., RS., Ch. 1350, 1999 Tex. Oen Laws 4570. 14TNRCC/ENVIRlJIvENTAL 

### Fax:512-239-G606 Nov c 

### 2001 17:14 P.16

Federal Authority: CAA §§ 114(c). 502(b)(8). 

### S03(e) (42 U.S.C. §§ 7414(c») 766JQ(b)(8), 7661b(e». 40 C.F.R. § 10.4(bX3)(viii). Citation ofStateJ..aws and Regulations: TEx. HEALm & SAFETY CODe 

### §§ 382.040. 382.041. 

### 30T.A.C. §§ 122.143(8») 122.320(g). 

### 30 T.A.C. § 

### 1.5(d). The analysis 

### in this section is unchanged 

### except as follows. Recent Texas legislation 

### revised the 

### requirements in TCM section 382.056 concerning public notice for operating permits.21 A 

### newspaper notice 

### for an opcnting pennit

### mustnow include information

### regarding the location at which a copy ofthe application is available forpublic review and copying; a 

### description ofthe procedure by 

### which a person may be 

### placed on amailing list in 

### orderto receive additional infonnation 

### about the application; and the time and 

### location ofany public meeting to be held concerning the application. These requirements are 

### in addition to those 

### required by 40 C.F.R Part 70. On April14, 2000, the Commission and the EPA entered into a 

### memorandum of agreen1ent regarding the transmission ofconfidQUtial infonnation to thQ BP A. The; BPA agreed to 

### adhere to the provisions ofTCAA section 382.041 and federal law regarding claims of 

### confidentiality. 

### A copy ofthe memorandum ofagreement is attachedhereto as AttaclnnentD.

21Act ofMay 30) 1999, 76th Leg., RS.• Ch. 1350, 1999 Tex. Gen Laws 4570. 

### 15

### TI\RCC/ENVIRll'1ENTFL Fax:512-239-0606 Nov 2001 17:14 

### P.l?

XIV. ENFORCEMENT OF PERMIT PROGRAM REQUIREMENTS 

### State 

### lawprovides 

### civil and criminal enforcement 

### authority consistent with 40 C.FoR section 70.11 t 

### including DUthOrity 

### to recoverpenalties 

### in a maximum amount ofnot less than 

### $10,000per

### dayperviolation. FederaiAuthority; 

### CAA §502(b)(S)(E) (42 U.S.C. § 

### 7661a(b)(5)(E». 40 C.F.R. §§ 

### 70.4(b)(3)(vii), 70.11. Citation ofState 

### Laws and Regulations; 

### TEx. WATERCOOE §§ 

### 5.501, 5.514,7.002,7.032, 7.051-7.068. 7.075, 7.102,7.105. 7.106, 7.110, 7.141, 7.177-7.183, 7.186-7.188, 7.202, 7.251-7.252. 

### TEx. HEALTII& SAPETY CODE 

### §§382.0518, 382.0519. The analysis in 

### this 

### section is unchanged except as follows. Consolidation ofState Enforcement Provisions
. The Legislaturere'Vised the State's statutory 

### authority for enforcement underthe TCAA 

### in 1997, by 

### consolidating many enforcementprovisions into Chapter 7 of

### the Texas Water 

### Code.22 

### A 

### chart showing the disposition ofthe old TCAA enforcement

### provisions is included in the TNRCC's June J, 2001, submittal to the EPA, "Section 

### n - Additional Elcmentls Section." 

### Modifications to 30 

### T.A.C. Chapter 122 In its draft 

### comments to the 

### 1997 revisions to 

### 30 T.A.C. Cb.apter 

### 122, 

### EPAobjected to the reference to requirements that 

### have been promulgated by 

### EPA butnot adoptedby 

### and
22Act 

### ofMay 28, 1997, 75

### m Leg.) R.S., 

### ch. 1072, § 

### 2, 1997 Tex. Gen. Laws 4094, 4099- 4126 (codified at 

### TEx. WATER CODE 

### §§ 7.01 et seq.). 16ThffC/ENVIRIl'1ENTAL 

### Fax:512-239-0606 Nov 

### 5 2001 17:14 P.18



### delegated to the State as "federallyenforceable only." TheTNRCC in its 

### 2001 revisions 

### to 30 T .A.C. Chapter 122 deleted the reference to «federally enforceable only" in 30 T.A.C. section 122.10(2)(K). The TNRCC made this change since Part 70 does not define this 

### term nor embody 

### this concept.· Notwithstandingthis amendment, the analysis provided 

### in 

### the 1998 Statement concerning this 

### issue is unchanged. Modifications to Remili;ements for State Gran4fathered Facilities 

### The Legislature modified 

### airpermitrequirements for 

### State grandfathered 

### facilities during the**1~** and 

### 2001 legislative sessions. Under TCAA section 382.0518(g), a facility is grandfathered, 

### i.e., not 

### required to have a State prec<>nstructionpennit, 

### ifthe facility was built 

### (including newly constructed. altered,**modifi~** 

### or added-to) on or before 

### August 30, 1971, and has 

### not been modified 

### since then in 

### a mannerrequiring new source review. 2J 

### The rationale for grandfathering was that it would not have made sense to apply a State

### preconstruetion permit mandate to facilities 

### that already

### had been constructed when 

### the requirement was added to the



### 23TBx. HJ!ALm & 

### SAFElY CODE 

### § 382.0518(g). State grandfathered facilities 

### also include facilities 

### on which construction, though not complete 

### on orbefore August 30, 1971. 

### began by then, or was contracted for by then and began within six months thereafter. To achieve and 

### maintain grandfathered status, 

### companies had to comply with the requirements ofTCAA section 382.060, 

### as 

### it formerly existed. Thatprovision required registration ofgrandfathered facilitjes with the TNRCC's predecessor agenoy and payment ofany fees set by agency rule. 

### 24Facilities may also be 

### grandfathered from federal 

### permitrequirements. 

### See, e.g., 

### eM § 165 (42 U.S.C- § 7475(a» (exempting facilities**~sting** on orbefore August 7,1977, and unmodified since that date, from prevention ofsignificant deterioration pennit requirements); 30 

### T.AC. § 

### 116.150 (exempting Texas facilities with submitted

### pezmit applications on orbefore November 15, 1992, and unmodified since that date, from nonattainment new source review requirements). 17TNRCC/ENVIRIl'£N1H
.... 

### Fax:512-239-0606 Nov 

### S 2001 17:15 

### P.19

In 1999 

### in Senate Bill 766, 

### the 76* 

### Legislature created aprogram for an owneror operator 

### ofa State grandfathered facility to 

### request, pursuant 

### to new TCAA section 382.0519, a voluntary 

### emissionreduction permit (VERP).'5 

### If

### a State grandfathered facility 

### applied for a VERP on or before August 31, 2001, Section 12 ofSenate 

### Bi11766 (Section 12)prevoo.ts the

" TNRCC from initiating an enforcement action against the 

### facility's owner oroperatorfor modi1ications constructed on or before March I, 1999, that 

### would have required. a TCAA section 382.0518 permit.2 ' 

### Section 382.0518 of the TCAA 

### applies only 

### to State preconstructioll

### permits, commonly referred to 

### by the 

### BP A as**'~tate** Minor

### NSR" permits. 

### Tn 2001, the 

### 77" Legislature 

### instituted a gradual 

### phase-out ofthe State grandfather exemption by

### passing 

### certain new permit

### requirements.

### v Pursuantto new TCAA section 382.05181 a State 

### grandfathered facility thatbas 

### no pending application for a permit 

### underthe 

### TeM (otherthan an application for a 

### Part 70 operating pennit) 

### or has 

### not submitted a notice of shutdown under new TCAA section 382.05182 

### may not emit 

### aircontaminants on or after September 

### I, 2003, 

### in the 

### East Texas region oron orafterScptember 1,2004, 

### in the West Texas region.2t

.........**~--------** 25Act of

### May 30,1999,76" Leg., RS., ch. 

### 406, § 5,1999 

### Tex. 

### Gen. Laws 2626,**2627~28;** see 0180 1'£x. HEALm & SAFETY CoDE § 382.0519. 

### Z6'fix. HEALm &**SAFETYCOD~** § 

### 382.0518 historical note [Act ofMay 

### 30, 1999, 7f1t Leg., 

### R.S., ch. 

### 406, 

### § 12, 1999 Tex. Gen. Laws 

### 2626, 2632}. 27&egenerally Act 

### of May 

### 28,2001, H.B. 2912, 77* Leg., R.S., ch. 

### 965, § 

### 5.03,2001 Tex. Sess. Law 

### Servo 

### 1825, 1848-51. 

### 21Id at 1848-49. The 

### East Texas region is defined by 

### TCAA section 382.05181 as containing all counties traversed by 

### or east 

### ofInterstate Highway 35 north ofSan Antonio or traversed by or east ofInterstate Highway 37 south ofSan 

### Antonio and includes Bexar, 

### Bosque, Coryell, 

### Hood, Parker. 

### Somervell and Wise 

### counties. The West Texas region includes 

### all 18**T~ClENVIRlJ'1ENTfL** 

### Fax:512-239-0606 Nov S 

### 2001 17:15 P.20

Small 

### business statioI13ry 

### sources are not subject to the 

### deadlines in 

### TCAA section 382.05181 and 

### may apply for a small business permit 

### under TCAA section 382.05184 before Septanber 1. 2004. 

### Ifan application for a pennit 

### under the 

### TCAA is not

### pending by April 

### 30, 

### 2008, ora 

### notice ofshutdown has 

### not been 

### submitted, the small 

### business stationary source may not 

### emit air eontamimmts. 

### Othec State grandfatheredfacilities, such as electrio generating facilities and reciprocating internal combustion engines that arepart ofprocessin&

## tJ:eatin& compression orpumping facilities connected to 

### orpart ofagathering or 

### transmissionpipeline. have permitting 

### options specifically forthose types of**faciliti~.** 

### Section 12 oiS.B. 766 (999) The

### EPA asked that this 

### opinion 

### include a discussion of whether ornot the enforcement protection in 

### Section 12 impairs the TNRCC's 

### ability to assure 

### compliance with Part 70 

### applieable requirements. Section 12 states: 

### (a) The 

### Texas Natural 

### Resource Conseivation 

### Commission may 

### not 

### initiate an enforcement action against aperson for the :failure 

### to obtain apreconstmctionpermit 

### under Section 

### 382.0518. Health and SafetyCode. or arule adopted 

### or orderissued by the 

### Commission under that section, that is related to the modification ofa facility that may 

### emit air

### contaminants 

### if: on orbefore August 31, 2001, the person files an application for a

### permit for a facility under Section 

### 382.0519, Health and Safety Code. as added by this 

### Act. (b) This section does not apply to an act related to the 

### modification ofIl facility 

### that occurs after

### March 1t 

### 1999. TEx. HEALTH & SAFETY CODE § 382.0518 

### historical note [Act ofMay 30, 

### 1999,**76~** 

### Leg., R.S., 

### ch. 406, § 

### 12, 1999 Tex. Gen. 

### Laws 2626, 

### 2632J.**co~ties** not in the East Texas region. 

### 19TNRCC/ENVlROCNTfl.. 

### Fax:S12-239-0606 Nov 5?rol 17:15 

### P.21

Section 12 does not affect the TNRCC's ability 

### to assure compliance withPart 70 applicable requirements. Moreover, to the extent Section 12 does affect the enforcement ofthe State's MinorNSR requirements, the effect is limited The intent oftbe Legislature to strictly limit

### coverage for Section 12 is shown by 

### direct statements in 

### the statutes and by 

### the 

### structure of the statutes, 

### regulations, and regulatory

### practices that 

### fonned the 

### backdrop for the 

### section's enactment 

### '[Byits express 

### terms the enforcementprotection 

### in Section 12 covers onlyviolations of
. TCAA section 382.0518 for constnlcting ormodifying without a Statepreconstruction permit. Only a person who 

### in the pasthas claimed grandfather-ed status under the TCAA is entitled to 

### protection.3 Protection extends only to owners or operators whose unfulfilled 

### legal obligation to have obtained apreconstructionpermit 

### arose because they 

### modified a facility 

### on orbefore March 1, 1999, and 

### then only ifthey 

### applied for a VBRP on orbefore August 31, 2001. A further limitation is that section 

### 12 applies 

### only to State Minor

### NSRpemrits issued 

### pursuant to 

### TCAA section 382.0518. Beforebeginning construction, TCAA section 382.0518 requires the owneroropexator ofa

### new facility 

### or a modification to 

### an existing facility that 

### ''may emit air

### contaminants» of

### any type 01:" 

### in 

### any amount to obtain a State MinorNSRpennit. There
are

# ~tiona1 preo<>nstruction pennitB requirod by the

# c~ for certain 

### types of pollutants at specified 

### emission rates-permits Texas now issues underfederally approved but state-lawbased. programs.30 These federal preconstmetionpermit programs include prevention of
29SuTBx.HBALnI&SAFElYCODE 

### § 382.0519.**~e** State MinorNSRprogram has also been submitted and approved bythe EPA as a measure in the State's Implementation Plan to regulate all 

### modification and 

### construction of 20TNRCC/ENVIRCM:NTfl.. 

### Fax:512-239-0606 Nov 5 2001 17:15 P.22

significant deterioration (''PSD '') 

### permits, nonattaimnent new somce review

# ("Nonattainm~ NSR") permits, and eAA section 112(g), 42 U.S.C. section 7412(g). pennits. v· Section 12 grants 110 enforcementprotection for the failure to have obtained PSD or 

### Nooattainment NSR

### permits prior to 

### constmction. It 

### speaks of"an enforcement action against 

### a 

### person for the failure to 

### obtain a preconstroctionpennit 

### under Section 

### 382.0518

- ... » This provision does not apply to the failure 

### to get PSD orNonattainmentNSR pennits because the 

### requirement for a facility to 

### obtain a PSD 

### orNonattaimnent NSR permit is not located 

### in TCAA section 

### 382.0518, as 

### discussed in the 

### next paragraphs. The requirement to obtain a PSD permit is 

### located in 30 T.AC. section 116.16O(a), 

### which incoJPOrates by reference 40 C.FeR section 5221(i)(I)"s requirement. The statutory authority the TNRCC invoked in support ofadoption was TeAA section 382.017, not the predecessor of 

### TCAA section 382.0518. 

### Norhas 

### the agency

### relied on 

### TeAA section 382.0518 

### or any 

### of

### its predecessors in 

### adopting intervening amendments to what is now 30 

### T.AC. section 116.16O(a).31 

### As a result, an enforcement**~tion** by the State for failure to obtain a PSD permit would 

### be exclusively for the failure 

### to comply

### with 30 T.A.C. section 116.160(a) and 40 C.FeR section S2.21(i)(I). 

### Section 382.0518 

### oftile TeAA would 

### not be invoked, and 

### therefore the limited onroroement protection ofSection 12 would be**inappo~itc.**

sources to assure that national ambient 

### air quality standards are achieved as 

### required by CAA 

### section II 

### O(a)(2)(C), 42 U.S.C. section 7410(aX2)(C). 31

### 30 T.A.C. section I 16.l60(a) was adopted pursuant to Texas Health and Safety Code section 382.017 and thus is also not "a rule
... adopted" under TCAA section 382.0518. See 18 Tex. Reg. 5746, 5765 (1993). 21lWCClENVIRCM:NTAl 

### Fax:512-239-0606 Nov S?ro1 17:15 

### P.23

The requirement to obtain a NonattainmentNSRpennit is located 

### in 30 T.A.C. 

### sections 116.150 and 

### 116.151.**Ag~** when the 

### T.NR.CC originally added these sections 

### to its regulations, and when it amended them through the years, the agency did 

### not cite TeM section 382.0518, 

### or

# any ofitspred«;essors as**authority.~2** 

### And, again, an enforcement action for the 

### failure to 

### cany out nonattainmentpermit

### requirements would be an action for 

### failure to 

### comply with 

### one orthe other

### ofthosc sections, not TCM section 382.0518. Moreover. the State MinorNSR 

### permitrequirement located in TCM 

### section 382.0518 has 

### never included 

### the requirement to obtain 

### PSD or

# No~en~ NSR

# permi&~ when the Legislature 

### originally passed 

### the predecessorprovision ofTCM section}82.0518"

.and 

### created the Statepz:econstroction permit

### requirement, the 

### concepts -federal COll(;epts - 

### of PSD 

### new sourcereview 

### and nonattainmentnew 

### source review did not 

### exist. The United States CoDgx<:s3 

### did not malo 

### PSD and

### NonattaimncntNSR

### pennits in 

### their modern 1i>mls Perloree, the Texas Legislature could not have intended the predecessor ofTCAA =section 

### 382.0518 to 

### createrequirements with

### respect 

### to such

### review. 

### The 1971 grandtathering date identified in what is now TCAA section 382.05 18(g) 

### lUldecscores this 

### point It would have made
no sense for 

### the Texas lawmakers 

### in 1971 to 

### exempt existin,g facilities from PSD o{

32

### 30 T.A.C. sections 

### 116.150 and 116.151 were adoptedpursuant to TCAA 

### section 382.017 and thus are also 

### not 

### "rulers]
... adoptC(f' lUlderTCAA section 382.0518. See 

### 18 Tex. Reg. 5746, 

### 5764 (1993). "Act of

### May 26,1971, 62d Leg., 

### R.S., ch. 619, §§ 1-3. 

### 1971 Texas General 

### Laws 2003 

### (adding § 

### 3.27 to 

### Tex. Rev. Civ. Stat. art. 

### 4477-5). 34Se e Clean 

### AirAct Amendments of 1977, Pub. L. No. 

### 95-95, Title I, §§ 127(a), 

### 91 Stat. 685, 735; id § 

### 129(b), 91 Stat. at 746, 748. 22TNRCC/ENVIRCM:NTfL 

### Fax:512-239-D606 Nov 5?OOl 17: 15 P.24

Nonattainment NSRwhen no such review was then legally

### required. Fllrthermore, PSD and Nonattainment NSRrequirements have not beenplaced in TCAA section 382.0518 in 

### the intervening years. As mentioned above, the Legislature has amended and modified·the requirement to 

### obtain a StateMinorNSR pemlit many times since 

### 1971.35 

### None of1hese legislative acts directly Ofindirectly 

### required afacility to 

### obtain a PSD or NonattainmentNSR permit 

### The text 

### ofTCAA section 382.0518 concerning the requirements foc

### a StateMinorNSR 

### permitfurther 

### supports the 

### view that the section contains the legal obligation to obtain only 

### a StateMinorNSR permit, not a PSD orNonattaimnent NSR permit 

### Subsection 382.05 

### 18(b) contains the 

### requirements for approval ofa 

### State Minor

### NSRpermit In 

### considering the best available control technology for the facility, the agencymust take 

### into account technical 

### practicability and 

### economic reasonableness. This cannot apply 

### to 

### Nonattainment NSR, under 

### which the permitting authority-Texas, pursuant

### to its approved SIP-mustimpose onthe facility 

### the lowest achievable emission rate, or

### LAER which is notbased

## on economic 

### reasonableness.30

35See Act 

### of

### May 14, 1979, 66th**Leg.~** R.S .• 

### ch. 726. 

### § 7. 1979 

### Tex. Gen. 

### Laws 1787, 1791; 

### Act ofMay27,**19~5,** 

### 69th Leg.• R.S., ch. 

### 637, 

### § 26, 1985 

### Tex:. 

### Gen. Lam 2350, 2355; Act 

### ofMay 28, 1987, 70th

### Leg., RS., ell. 793, 

### § 1, 1987 

### Tex. Gen. Laws 2783, 2783; 

### Act of May 16. 

### 1989, 7lst 

### Leg., RS., 

### ch. 678, 

### § I, 1989 

### Tex. 

### Gen. Laws 2230,2723.24; 

### Act ofJuly 

### 25. 1991, 72nd Leg., 1st 

### C.S., ch. 

### 3, 

### § 2.08, 199J Tex. Gen. Laws 4,51-52.
30See 

### CAA 

### § 171(a)(3) (42 

### U.S.C. 

### § 7051(3» (defining 

### LAER). Economics ofa control strategy 

### considered for LAER are only ofconcern when determining the strategy's achievability. See 

### Guidance on Detennining Lowest Achievable 

### Emission Rate. EPA 

### Directorof

## Air Quality Management Division, John Calgani (February 28, 1989). 23

### Fax:512-239-0606 Nov 5 2001 17:15 P.25

Similarly, 

### under subsection 382.05l8(bX2) 

### the Commission must engage 

### in health effects review 

### for a State 

### MlOOrNSR

### permit. It 

### must find DO 

### indication that the emissions from the facility will undennine protection ofthe public's health 

### and physical property. Health effeots 

### review is noirequired for

### PSD 

### andNonattainmentpennit

### reviews. TNRCC's historical permit

### practice, including therelationship betweenthat 

### pcadice and EPA's practice, buttress the 

### J><?ints made above.**~ntil199~** 

### the TNRCC carried 

### out review of PSD permit applications, but since 

### Texas did not 

### yet have BPA authorization to issue 

### PsD pennits,. the

## JWA issued PSD 

### pccmits entirely separate from Texas State MinorNSRpermits. 

### Since authorization 

### ofTexas's 

### program in 1992, the TNRCC has 

### combined a 

### MinorNSR

### permit 

### and a PSD permit 

### in one document, but the document always lists 

### two 

### pennit numbers. one for the State MinorNSR 

### permit and another for the PSD pennit. A similar approach is followed with 

### respect to the relatively rare 

### Nonattainment NSR. permits. 

### Section 12 does notrelieve an unauthorized grandfathered 

### facility from therequirement to be pennitted. On 

### the contrary, by 

### applying for and 

### obtaining a VERP

- which is one ofthe preconditions for Section 12's applicability

- the facility 

### will come into thepreconsttuction 

### permitprogram, will 

### give up its 

### State grandfathered status, 

### and may 

### have to upgrade 

### its pollution-<;ontrol technology. Emission reductions may**r~lt.** Tho nowty revised Texas 

### definition ofappUcable 

### requirements, in 30 

### T.A.C. section 122.10, includes VBRPs, so 

### eM 

### Title V enforceability will also be ensured.

24ThRCC/ENVIRCl£NTAL 

### Fax:512-239-0606 Nov 

### 5 2001 17:16 P.26

Further, because a TNRCC enforcement action is not initiated underTexas law until the ExecutiveDirector serves an administrative petition seeking enforcement against the violator,'? the TNRCC will be able to investigate and document any past unauthorized modification, even though initiation ofenforcement may be 

### barred against an owneror operatorwho meets all of Section 12's 

### criteria. The TNRCC could use such a modification in advocating enhanced penalties in a future action for enforcement with respect to otherkinds ofviolations. StateMinor NSR

### Not Part ofCurrently Approved Title V Program Setting aside the limitations discussed above, Section 12 has no effect On the certification herein because itprotects from enforcement only those violations that occurred before State MinorNSR 

### was included in the State's Part 70 Operating Permit Program. Texas is CWTetttly 

### operating its 

### programpursuant to the 

### EPA's 

### interim approval 

### givenJune 25, 1996. At the 

### time ofinterim approval, Texas did not include State MinorNSR in its Part 70 source definition regulations in 30 T.A.C. Chapter 122. BP A noted the non-inclusion ofState MinorNSR and set 

### forth conditions for 

### Texas Part 70 

### operating**~nnits** to explicitlystate that 

### State Minor NSR was

37]:t is the practice ofthe TNRCC Executive Director to conduct inspections and, upon 

### discovery of

### apotential enforcement situation, 

### to issue anotice ofviolation (NOV). The issuance ofan NOV does not constitute the initiation ofan enforcement action. The Commission defines "enforcement action" 

### in 30 T.A.C. section 3.2(12), as 

### "an action, initiated bythe Executive Director, 

### seeking an enforcement order.t. The Executive Director initiates an enforcement action 

### ifan NOV is not resolved oran agreement is not reached with the respondent. The enforcement action is initiated**~~** and service ofan "ExecutiveDirector's Preliminary Report and Pe 

# -oIiDPRP. is the EDPRP that serves as the petition which states a cause ofaction against a. respondent and initiates an enforcement action. 25

### Fax:512-239-0606 Nov 5 2001 17:16 

### P.27

not included in 

### the operating pennit.3S By 

### delaying the inclusion ofState MinorNSR as an applicablerequirement in 

### the Texas Part 70 OperatingPermit Program, 

### the State delayed the applicability 

### ofthe 

### operating pennit 

### program7s**requirements~** 

### enumerated in Part 70, including 

### its requirements for compliance and enforcement, until final 

### program subnrittal. 

### In its 

### intuim approval notict; 

### the 

### EPA acknowledged this position: "Although the exclusion ofminorNSR


### means that 

### hnportant 

### title V 

### compliancemeasures (e.g., 

### compliance certification. public 

### review, etc.) will be 

### deferred for 2 years 

### for minorNSR the 

### proposedprovisions would 

### limit the scope and 

### duration ofthe 

### effects ofthis deferral, and 

### would assure that

### thepublic could examino, in 

### federally-enforceable NSR pemrits. 

### any 

### terms 

### which are not subject 

### to title V's compliance
measures during 

### the 

### interim period.'J39 

### Before the TNRCC's addition ofState MinorNSR permits to 

### the State's 

### Part 70 Operating Permit**Pro~** 

### which was effective onJune 3, 2001,40 

### facilities did not 

### violate the State's Part 70 Operating 

### Permit Program by 

### modifying an emission unit without a State Minor NSR**pemUt~** 

### Even 

### absent Section 

### 12, the TNRCC could not 

### validlyplead a State enforcement action under 

### its 

### Port 70 OperatingPermitProgrom for a failure to have obtained a StateMinor 

### NSRpermit 

### for facility 

### modifications 

### made before

### March I, 1999. Such a failure 

### would only be
a violation ofTCAA section 382.0518(a)'s prohibition. Therefore, Section 12'5 

### allorcement

31

### 61 Fed. Reg. 32,693, 32,698 (1996). See also 

### id. at 

### 32,694-95 (allowing for states to receive interim program approval despite postponing the 

### obligation to incOIporate 

### byreference State 

### minorNSRpemrits in 

### the first group ofTitIeV permits). 39

### 61 Fed. 

### Reg. 31,443, 31,444 (1996).**~See** 

### 26 Tex. Reg. 3747. 3792 (2001). 

### 26TI'-I<CC/ENVIRIl'1ENTRL 

### Fax:S12-239-Q606 Nov S 

### 2001 17:16 P.28

protection 

### does not impair a viable StatePart 70 Operating Permit Program enforcement claim. This certification ofthe State's enforcement authority under the State's submitted program is prospective from the date ofrecent modifications to the State's program which included 

### state MinorNSR for the first time. Section 12's limited enforcement protection does not affect the Attorney GeneraPs certification ofthe enforcement authority 

### in the 6Ubmitted State 

### programbecause it 

### applies to 

### failures to obtain State Minor NSR permits that 

### occmred before the 

### beginning of

### the applicable period for certifYing enforcement. 

### State grandfathered 

### facilities are protected from enforcement only for unauthorized modifications made on or before March I, 1999. As discussed**abov~** these violations would notbe subject to a State Part 70 enforcement action because State MinorNSR pennits were not included 

### in the interimly approved Title V program. Effective June 3,2001, Texas's 

### final revisions to its Part 70 Operating Permit

### Program in 

### 30 T.A.C. Chapter 

### 122 first 

### began to include all of

### Title V's 

### requirements. This 

### is the program submitted for approval, and this is the program under which the Attorney General is certifying enforcement. Since June 3,2001, 

### Texas bas had the full enforcement 

### authority required by Part 70 for State MinorNSR violators. 

### In summary, Section 12 did not revise the enforcementprovisions of

### Chapter 7 of

### the Texas Water Codo. Scction12 is linUltXl to protciotion from c:nforcemmt for an act ofmodit)'ing
a grandfathered**facili~y** without a required State Minor NSR pennit on orbefore March J, 1999. Section 12 is limited to facilities that applied for a VERP 

### on orbefore August 31, 2001. 

### Section 12 is limited to failures to obtain State Minor NSRpennits only; it does not affect enforcement ofPSD and Nonattainment NSR requirements. Finally, Section 12 limits enforcement ofonly State MinorNSR permit violations that occurred prior to the addition ofState Minor NSR to the 27ThRCC/ENVIRCtIENTRL 

### Fax:S12-239-0606 Nov S 20Jl 

### 17:16 P.29

State's Part 70 Operating 

### Pennit Program.**TherefQr~** Section 12 does 

### not surrender the TNRCC's ability to assure compliance with Part 70's federal operating pennitprogram enforcementrequirements. 

### Response to 

### EPA Questions: In its comments on the TNRCC', proposed 2001 revisions to 30 T.A.C. Chapter 122, the 

### EPA

### requested aresponse to the 

### following 

### enumerated questions: I. Please identify which

### penni!§.. 

### tulS'S- ororders 

### (including citation to 

### the**ap~ate** statute orregulation) are subjectto 

### Section 12's 8II1Ile§(y provision. Also exPlain 

### how each source would not 

### be subject to the Title V operating permits program. Please note that Section 382.0518 was enacted in 1991. and became effective**Se.ptemb~** I. 1991. Also. any mles or ordas adopted 

### pursuant to Section 

### 382.0518 would be 

### enacted after September 

### 1. 1991. 

### Therefore. in 

### your explanation. also discuss wJx@.et 

### ape;rwn WQuld 

### 1xeHgible for amnesty 

### ifa modification tookplace prior to enactment ofSection 382.0518 orprior to the

### promulgation of any rules or orders 

### adQPted pursuant to Section 

### 382.0518. As set forth above, 

### Section 12 applies only to State 

### MinorNSR pennits. It is not clear what the last part ofthe question seeks. Although codified in its current 

### location in 1991, TCAA section 382.0518 is 

### derived from section 3.27 of article 4477-5 ofthe Texas Revised Civil Statutes, which 

### the Legisla.ture adopted in 

### 1971.41 

### Section 12'sreference to 

### TCAA section 382.0518 refers back to this 

### section and its

### predecessorprovisions. "Modifications" taking place "prior to the enactment ofsection 

### 382.0518" in 

### 1971 would not 

### be 

### violations ofTCAA section 382.0518 and its predecessor

### provisions in the first place. Therefore, Section 12's enl'OI«mOfit protection would be irrelevant to such m.odifications.
'USee TEx. CIv. STAT. art. 4477-5, § 3.27, adopted byAct ofMay 26, 1971, 62ad Leg., RS., ch. 6195 §§ 1-3, 1971 Tex. Gen. Laws 

### 2003.2004-05, recodifiedas 

### TEx. lIEALm & SAFBTYCODE. 

### § 382.051, Act ofMay 16, 1989, 71st

### Leg., R.S., ch. 678, 

### § 1, 1989 Tex. Gen. Laws 2230, 2723-24, renumberedas 

### TEx. HBALm & SAPETY CODE. 

### § 382.0518, Act ofJuly 25, 1991, 72nd Leg.• 1Sf C.S.• ch. 3. 

### § 2.08. 1991 Tex. 

### Gen. Laws 4.51-52. 28TI\RCCIENVIRCH:NTfL 

### Fax:512-239-0606 Nov 5 2001 17:16 P.30

2. Explain how Section 12ls amnesty provision would not apply to the failure to obtain a permit required 

### by the }>SD ornonattainment NSR 

### program, as stated in the 

### preamble to the proposed Chapter 122 revisions (26 Tex. Reg. at 898). As 

### set forth above, Section 12 provides enforcementprotection only for the failure to have 

### obtained a State MinorNSR pennit for modifications made without authorization prior to 

### March I. 

### 1999. 3. According to th.egrandfathered Facilities Report. 

### grandfathered facilities can and have been pennitted under: (I) state new 

### soUl'Ce review permits; (Q) permits-by-roIe; (c) exgtions: 

### fd) 

### standardpermits; 

### and (el flexible 

### permits. 

### Facilities Report. Texas Natural RCSO\irce Conservation Commission. Executive 

### Summary at 

### 7 (January 4. 2(01)**(SFR~711. Pl~e**  address how

### these five pennitting 

### authorities would not 

### fall underTexas' definition of

### applicable requirement 

### in 30 T.AC. 122.10(2). FOT 

### example. the pmposed definition of

### applicable requirement includes ChaPter 106. Subchapter

### A and 

### Chapter 116. Chapter 106. SubchapterA involves 

### general J::Mwrements for 

### permits by role. Chapter 116 includes standard

### permits. flexible permits. and voltmtary emission reduction pennits. Assuming that the 

### revised definition 

### ofapplicable

### requirement is adopted as currently proposed. explain how eachpermitting authority for a grandfathered SOW'Ce would not

### be subject to 

### the Title V operating pennits program. For example. how would a grandfatb«ed source that was issued a 

### standard 

### permit under Chapter 116 not be subject to the 

### Title V operating pennits program at a Part 70 

### source. The 

### listed permits and authorizations 

### are now included as applicable requirements in 30 T.A.C. Chapter 122 7 which is part oftlte state·s currentproposOO Part 70 Operating Pennit 

### Program submittal. 

### Therefore, ifa 

### grandfathe.red facility is authorizedby any of

### the preconstruction authorizations 

### listed above and 

### the facility is located at 

### a 

### majorsource, the facility and those: authQrizations witl be inoluded in the site's operating pennit as applioable 

### requirements. As discussed in Section VITI ofthis Statement, the 2001 revisions to 30 T.A.C. 

### Chapter 122 modified 

### the definition ofapplicable requirement to 

### include the major and minor new source review requirements of30 T.A.C. Chapter 116. Control ofAir Pollution by Permits for New Construction or Modification, and 30 T.A.C. Chapter 106, Pennits by Rule. Section 29TNRCC/ENVIRI1£NTAL 

### Fax:512-239-0606 Nov 

### 5?OO1 17:16 

### P.31

122.l42(bX3) of30 T.A.C. requires pemrits for which 

### the Executive Director

### has not authorized initiation of public notice by the effective date ofthe 2001 revisions to 30 TAC. Chapter 122 .(June 3, 2001) to include State Minor NSR at initial issuance. Permits as to whioh thepUblio notice

### process 

### was authorized to begin before 

### 1une 3. 2001. 

### will not include 

### State 

### MinorNSR at initial issuance, and instead 

### will have State Minor

### NSR ineoIpOrated 

### no later than pemrit renewal. Consistent 

### with the requirements in 40 C.F.R. section 70.4(dX3XiiXl), the revised requirements of30 T.AC. 

### section 122.231. PermitReopenings, provide that the 

### commission will 

### institute proceedings 

### to reopen previously 

### issued 

### operating pemrits to 

### incorporate excluded State MinorNSR 

### permits 8$ tenns ofoperating permits.**Th~** 

### operating permits will be

### reopened to inolude 

### all State Minor

### NSR authorizations for facilities at a site. After an operating permit is issued, reopened or renewed to include State 

### MinorNSR authorizations. those authorizations will be an enforceable applicable requirement in the pennit and subject 

### to the compliance conditions of

### 30 T.A.C. Chapter 122. 4. Ifa grandfathered source b;is 

### been subsequently pennitted by either a State new source review permit. pemrit-by-roJe, exemptioo, standard permits. or flexible penni!, bas it lost 

### its grandfathered status. and 

### thus is 

### Dot eligible for 

### amnestY? Ifa 

### State grandfathered source obtains a pennit or

### other authorization it 

### will no longerbe grandfathered and it will have to comply with 1be requirements ofits pcnnit or authorization or be subject to enforcement. 

### Ifa State grandfatheced facility obtained one ofthe listed

### pemtits or authorizations, 

### it would appearthe facility would not be entitled to 

### the enforcementproteotion 

### of 

### Section 12. The 

### enforcement protection of

### Section 12 only 

### applies to qualified VERP 

### applicants. not applicants for the permits 

### listed in the question.

30TNRCC/ENVlRa'1ENTFL 

### Fax:S12-239-Q606 Nov S 2001 17:16 P.32

5. Ifa person receives amnesty for failing to obtain a preconstruction pgmit for a modification. is the source pennitted retroactively [i.e
.. under the pennitting requirements that existed at the time it should have been**~itted** (e.g.• best available control teclmology @AC1) that existed at the time it would have gotten a permit)]. orwill it be permitted under the current permitting requirements and required to use 

### current BACT? 

### lfit is pemritted retroactively, please explain why it is not pennitted under the current permitting reguirements. 

### As discussed above, in 

### Senate Bill 766 (1999) the 76lb 

### Legislature modified 

### the TCAA's pennitting program and created two new permits with conditions that allow for 

### control technology requirements suited to State grandfathered facilities: VERPs or multipleplant 

### permits. 

### The VERPpermit 

### allows a State grandfathered 

### facility 

### to meetthe more stringent 

### of ten-year old BACT ot a 

### generally achievable control technology (which is 

### interpreted as first tier BACT, minus age and remaining useful life). Ifa. State grandfathered facility cannot comply 

### with the 

### control requirements for a 

### VERP, it can create emission reduction 

### credits under TCAA section 382.05193. Emissions Pennits ThroUgh Emissions Reduction. State grandfath«ed facilities at multiple plant sites that are owned ot operated by the same person may apply for a multipleplant pennit which will set an aggregate rate ofemissions. Senate Bill 766 (1999) provided these control requirements instead ofrequiring a retroactive application ofBACT, as 

### it is defined today or as it existed at the time the facility was modified. Current BACT is not 

### required because the Legislature determined that an alternative control requirement 

### was better 

### suited for these facilities. Besides 

### the two specific pennit options, 

### owners or 

### operators of

### State grandfathered facilities can choose to apply for othCl" pennitting authorizations under the TCAA which do require BACT. Examples are a pennit under section 382.0518. a standard permit, a flexible permit, or a pemrit by mle.

31Tt-RCC/ENVIRIl'1ENTfl.- 

### Fax:512-239-0606 Nov S 2001 17:17 P.33



# xv. AUTIIORITY TO ENFORCE LAPSED PERMITS State law provides authority to enforce the tenus and conditions ofa pennit

### which has expired, ifthe source has filed a timely and complete application forrenewa4 so as to assure 

### compliance 

### With all 

### applicable requirements. Federal Authority: CAA 

### § S02(bX5XA) (42 U.s.C. 

### § 7661a(b)(5XA». 

### 40 C.F.R. § 

### 70.4(b)(lO). Citation ofState Laws and Regulations: 

### nx.1IEALm & 

### SAF£1Y CODE 

### § 382.0543(g), (h). 30 T.A.C.§ 122.241(g). The analysis 

### in 

### this section is not changed. XVL EPAPERMITVETO 

### State lawprovides that 

### an operating pennit 

### will 

### not issue if

### the EPA objects in 

### atimely 

### manner to 

### its 

### issuancepursuant to 

### 40 C.F.R. section 70.8(c), or, if

### the pennithas been 

### issued, the EPA objectspursuant to 

### 40 C.F.R. section 70.S(d). 

### Federal Authority: CAA §§ S02(b)(5)(F), 50S(b) (42 U.S.C. §§ 7061a(b)(5)(P), 7661d(b». 40 C.F.R.. §§ 70.4(bX3)(ix), 70.8(c)-(d). Citation ofState Laws and Regulations:
. TEx. HBALm &SAPETY CODE §§ 382.0541(b), 382.0563. 30 T.A.C. §§ 122.350, 122.360.

32llfX:C/ENVIRCtENTfl. 

### Fax:S12-239-0606 Nov c::, 

### 2001 17:17 P.34

The analysis in this section is unchanged except to note that the 1993 version of30 T.A.C. Chapter 122 only allowed for EPA veto on 

### initial pmnit issuance, significantpermit modifications, renewals and reopenings. The 1997 revisions to 30 T.A.C. Chapter 122 allow for 

### BP A veto

# on all ofthe above, and on minor

### pennitrevisions. 

### XVIL FINAL AGENCY ACTION ON 

### PERMITS State 

### law provides.that solely for the PUIpOses ofobtaining

### judicial review 

### in State court 

### for the TNRCC's failure to take final 

### action, ''final pennit action" shall include the 

### failure ofthe TNRCC to take final action on an application for a permit, pennitrenewal, or

### pennitrevision 

### within eighteen months. 

### federal**Aytho~ty:** CAA § S02(bX7) (42 U.S.C. § 7661a(bX7). 40 C.F.R. § 70.4(bX3Xxi). Citation ofState Laws and Regulations: 

### TBx. lIBALnI & SAFElY CODE 

### §§ 382.032(b), 382.0542(c), 382.0543(d). 30 

### T.AC. § 122.139. The 

### analysis in this section is not changed.

33

### Fax:512-239-0506 I\bv 2001 17: 17 P.35

XVID. DEFAULT PERMIT ISSUANCE State law 

### does not authorize the 

### issuance, modification, orrenewal ofany permitbased


### on the passage ofa specified 

### time period when the TNRCC 

### has failed to take action on the application, 

### and State law does not include 

### any other similarprovision providing for default issuance ofapermit unless EPA has 

### specifically waived theright ofreview for 

### itselfand affected 

### States. Federal Authority; CAA § 

### 505(a)-(e) (42 U.S.C. § 

### 7661d(a)-(e». 40 C.F.R § 70.8(e). The 

### analysis 

### in this 

### section 

### is not changed. XIX. OPPORTUNITY FOR JUDICIAL REVIE\V OF PERMIT ACTIONS State law

### provides an opportunity 

### forjudicial review in State court ofany 

### final pcnnit 

### action. Those eligIDIe to sue are the applicant, anyperson who participated 

### in the public participationprocess provided pursuantto the 

### eAA and 40 C.F.R. section 70.7(h), or

### any other person who could obtainjUdicial review 

### ofsuch actions under State law. Any 

### provisions ofState law 

### that limit access to

### judicial review do not 

### exceed the corresponding limits onjudicial review imposedby the standing requirements ofArticle m ofthe United States Constitution. 

### Federal Authority; CAA § 502(bX6) (42 U.s.C. 

### § 7661a(bX6». 40 C.F.R. §**70.4(bX3X~)·**

34TJ'.RCC/ENVIRl1£NTft. 

### Fax:S12-239-0606 Nov r:;. 

### 2001 17:17 P.36



### Citation ofState Laws and Regulations: TEx. HF.ALrn & 

### SAFElY CoDE 

### §§ 382.032, 382.0562,382.0563, 382.061(c). The analysis in this**sectio~** including that contained in the 1996 statement and letter of**commitmen~** is not changed. 

# xx. LIMITATIONS ON mnlCIAL REVIEW State 

### law provides 

### that the opportunity for

### judicialreview of

### a final pennit 

### action in State court descn"bed 

### in paragraph XIX ofthis Opinion shall be'the exclusive means for obtaining judicial review ofthe terms and conditions 

### of permits. 

### State law provides that petitions for judicial review mustbe filed no laterthan thirty 

### days afterthe 

### final permit action. State law provides that 

### ifthe final pennit action being cballenged is the TNRCC's failure to take final action, a 

### petition forjudicial 

### review may be ,filed 

### at any time before the TNRCC denies the pennit 

### orissues the final pennit. Federal Authority; 

### eM § 

### 502(b)(6) (42 u.S.C. § 

### 7661a(b)(6». 40 C.F.R. § 

### 70.4(b)(3Xxii). Citation ofState Laws and Re,gu.lations: TEx. REALm & SAFETY CODE §§**382.032~** 3&2.0542(0), 382.0S43(d). 

### The analysis in 

### this section is 

### not changed. XXI. COORDINATION WITH ACID RAIN PROGRAM REQUIREMENTS State law is consistent 

### with and cannot

### be used to modify the Acid Rain Program requirements of40 C.F.R.. Part 72.

35

### P.37 Tl'RCClENVIRIl'1ENTFL

Federal Authority: 

### Fax:S12-239-0606 Nov S?Oa1 17:17


# ---------

eM §§ 408(a), S06(b) (42 U.S.C. §§ 7651g(a), 7661e(b». 40 C.F.R. §§ 70.4(bX3)(xiii), 72.7O(b), 72.72(a). 

### Citation ofSiate Laws and RqroJations: TBx.1IBALm & SAFETY CODE §§ 382.0541(10)-(12), 382.0542(3)(F). "30T.A.C. 

### § 122.410. The analysis 

### in 

### this section is 

### not changed. 

### XXII. AUTHORITY FORLOCAlJINTERSTATE 

### PROGRAMS No lo<?al entities in Texas will be hnplementing theil" own operating pennit

### programs.

JOHN CO 

### Attorney General ofTexas

36

### Date