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### r« l 1 5 19 » Mr . Lan e Hartsoc k Deput yDirecto r Ai r Qualit yPlanning Texa s Ai r Contro l Boar d 1212 4 Par k 3 5 Circl e Austin , Texa s 7875 3 RE : Propose d Revision s t o Regulatio nVI I - Nitroge nOxide s (NO x ) Reasonabl yAvailabl e Contro l Technology(RACT ) Dea r Mr . Hartsock : Thank yo u fo r th e opportunit yt o revie wth e propose d Regulatio n VI I revision s pertainin g t o NO xRACT . Th e Texa s Ai r Contro l Boar d (TACB ) propose d thes e revision s t o addres s severa l issue s raise d b

yth e affecte d communit yan d th e U.S . Environmenta l Protectio nAgenc y(EPA ) concerning th e NO xRAC T rul e fo r th e Housto nan d Beaumon t ozon e nonattainmen t areas , adopte d o nMay11 , 1993
. Th e propose d revision s pertai nt o fou r areas : 1
. §117.10 5 an

d §117.205 , concernin g existing permi t limit s an d thei r relationshi p t o RAC T requirements ; 2
. §117.540 , concerning phased-RAC T determinations ; 3
. §117.550 , concerning a genera l permi t fo r collatera l emissio n increase s du e t o installatio no f NO xcontrols ; an d 4
. §117.580 , concerning sourc e mas s emission s caps . W e suppor t th e effor t o f th e Stat e t o addres s concern s tha t w e an d th e affecte d communit yhav e wit hth e recentl yadopte d N0 X RAC T rule
. Ou r specifi c comment s o nth e propose d revision s ar e enclosed
. Whil e w e fee l th e proposal s ar e directionall ysound , th e EPAdoe s no t hav e fina l guidanc e o nsevera l o f th e issue s raise d i nthes e proposals
. Th e EPAwil l therefor e nee d t o d o

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- anothe r revie wo f thes e provision s whe nou r guidanc e i s finalized
. Althoughw e d o no t anticipat e th e nee d fo r majo r changes , furthe r revision s mayb e necessarybefor e th e regulation s ca nb e Federall yapproved
. W e appreciat e th e opportunit yt o commen t o nthes e propose d revision s t o Regulatio nVII . W e valu e th e productiv e workin g relationshi p tha t w e hav e wit hyo u an d you r staf f i ntryin g t o resolv e thes e comple xissue s pertainin g t o th e N0 XRAC T rule
. I f yo u woul d lik e t o discus s ou r comment s i nfurthe r detail , pleas e contac t Leil a Yi mSurrat t o f m ystaf f a t (214 ) 655-7231
. Sincerel yyours , "Origina l Signe d b yGeral d Fonteno T Geral d W . Fonteno t Chie f Ai r Program s Branc h(6T-A ) Enclosur e
cc : Dou g Gran o (MD-15 ) Bil l Lamaso n (MD-15 )P. 4

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U.S . Environmenta l Protectio nAgenc y(EPA )

Comment s o nth e Propose d Revision s t o Regulatio nVII .

Nitroge nOxide s (NO x ) Reasonabl yAvailabl e Contro l Technology(RACT )
Emissio nLimi t Specification s 1
. Pag e 6-7 , §117.105(m ) an d §117.205(h ) - Thes e provision s allo wcertai nboiler s an d heater s wit ha nexisting permi t limi t o f 0.1 2 pound N0 Xpe r millio nBt u (lb/MMBtu ) hea t inpu t t o maintai nth e 0.1 2 lb/MMBt u permi t limit
. Thes e unit s ar e exemp t from th e RACT-specifie d limit s whic hmayb e 0.1 0 lb/MMBt u fo r some units
. Fo r th e Stat e t o allo wthi s alternativ e RAC T determination , th e Stat e shoul d demonstrat e wh yrequiring thes e source s t o reduc e 0.0 2 lb/MMBt u woul d no t b e considere d RACT . I naddition , thes e provision s clarif ytha t th e mor e stringen t o f an

ypermi t o r RAC T emissio nlimi t applies
. Thi s clarificatio n i s necessaryt o ensur e tha t fo r averaging purposes , unit s wit hmor e stringen t permi t limit s d o no t provid e "pape r credits " t o other,units , b ytradin g th e differenc e betwee nth e permi t limi t and th e RAC T limit
. Eve nwit hthi s revision , however , ther e mayb e th e opportunit yfo r permitte d unit s t o provid e "windfal l credits " t o othe r unit s i f th e permitte d units ' actua l emissio nrate s ar e significantl ybelo wthei r allowabl e limits
. I nthi s case , permitte d unit s tha t hav e historicall yemitte d belo wthei r allowabl e limit s woul d provid e credi t t o othe r units , potentiall ydilutin g th e reduction s achieve d wit hth e NO xRAC T rule
. Ha s th e Stat e considere d th e exten t t o whic hsuc h"windfal l credits " migh t occu r b yallowing source s t o us e th e lowes t allowabl e emissio nrat e rathe r tha nth e lowes t o f actua l o r allowabl e emissio nrate s i n calculating th e system/plant-wid e average ? Doe s th e Stat e hav e an yindustryspecifi c dat a t o substantiat e tha t suc h"windfal l credits " woul d b e minimal ?
Phased-RAC T Determination s 2
. Pag e 9 , §117.540(a)(1 ) - Th e Stat e mus t hav e sufficien t time t o mak e a determinatio no na source' s phased-RAC T petitio n prio r t o th e complianc e deadlin e o f Ma y31 , 1995 , a s mandate d b

yth e Clea nAi r Act . Petition s shoul d b e submitte d n o late r tha nth e submissio ndeadlin e fo r initia l contro l plan s whic hi s Apri l 1 , 1994
. Therefore , th e las t claus e o f thi s section , "o r a s soo na s possibl e afte r tlete:rminatio

n b yth e owne r o r operato r tha t complianc e b y Ma y31 , 199 5 i s no t practicable, " shoul d b e deleted
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. Pag e 11 , §117.540(a)(2)(E)(ii ) - I f i t i s th e State' s inten t tha t source s contac t al l qualifie d vendor s befor e makin g th e assertio ntha t th e equipmen t i s unavailable , the nth e las t claus e o f th e firs t sentence , "an d wh o hav e bee n contacte d t o obtai nth e require d service s and equipment, " shoul d b e deleted
. 4
. Pag e 11 , §117.540(a)(2)(E ) - Th e Stat e request s specifi c informatio n from

source s t o demonstrat e equipmen t unavailabilit yand/o r systemreliabilit ybu t doe s no t specificall yrequir e economi c information ; however , i n §117.540(a)(3) , th e Stat e allow s th e Executiv e Directo r t o approv e a phased-RAC T petitio nbase d on , " . . . economi c factor s (sucha s cost s o f additiona l outage s necessitate d b y complianc e wit hth e emissio nspecification s o f thi s titl e b y Ma y31 , 1995 , a s demonstrate d b ycompariso nt o cost s o f actua l historica l an d planne d outages ) a s th e TAC B determine s i s appropriate. " I f th e Stat e wil l approv e phased-RAC T application s base d o neconomi c factors , th e Stat e shoul d specif yi n§117.540(a)(2)(E ) wha t informatio n wil l b e require d fromth e source,t o mak e suc ha determination
. 5
. Pag e 14 , §117.540(a)(4 ) - Th e Stat e need s t o avoi d automaticall yallowing fo r sourc e complianc e delay s through us e o f th e petitio no r appeal s process . T o accomplis hthis , th e Stat e maywan t t o clarif ytha t i f a complet e petitio ni s no t submitte d bya dat e certai no r i f a petitio ni s no t approve d b

yth e Executiv e Directo r b yMa y31 , 1995 , the nth e petitio nwoul d b e considere d denied
. Eve ni f th e sourc e appeal s th e decision , th e sourc e mus t assum e complianc e i s require d b

yMay31 , 1995 , and remai ni ncomplianc e unles s th e decisio ni s overturne d b yth e Board
. Th e Stat e ma yals o wan t t o includ e i nth e regulatio nth e maximumamoun t o f tim e th e Stat e ca n tak e t o mak e a determination
. 6
. Pag e 14 , §117.540(a)(5 ) - Becaus e thi s proposa l fo r phased-RAC T determination s doe s no t mee t th e EPA' s requirement s fo r replicabl e procedures , an yphased-RAC T determinatio nwil l requir e EPAapproval
. Th e Stat e ma ywan t t o wor k wit hth e EPAt o develo p a proces s tha t allow s fo r a n expedite d EPArevie wand approva l proces s suc htha t th e phased-RAC T determination s ca nb e Federall yapprove d prio r t o th e Federall ymandate d complianc e deadlin e o f Ma y31 , 1995
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Genera l Permi t fo r Collatera l Emissio nIncrease s 7
. Pag e 19 , §117.550(a)(1)(C ) - Thi s provisio nallow s grandfathere d equipmen t t o emi t up t o th e rat e a t whic hth e emissio nuni t actuall yoperate d and emitte d prio r t o Septembe r 1 , 1971
. Th e EPAi s concerne d tha t thi s may interfer e wit hth e State' s abilit yt o achiev e rea l N0 X reduction s throughth e NO xRAC T rul e b yallowing unit s tha t mayhav e degrade d sinc e 197 1 t o restor e thei r capacit y withou t going throughth e permittin g process . T o avoi d thi s situation , th e "actua l grandfathe r rate " shoul d b e define d a s th e maximu

m annua l emissio nrat e o r dat a tha t ar e relate d t o emission s whic har e reflecte d i nth e mos t recen t emission s inventory(i.e. , th e 199 0 emission s inventory)
. 8
. Pag e 20 , §117.550(a)(3 ) - Th e Stat e shoul d clarif yth e ter m emission s b

yrevising thi s paragrap ht o read , "I f installatio n o f NO xabatemen t equipmen t o r implementatio no f a NO xcontro l techniqu e wil l resul t i n * a significan t ne t increas e i nrepresentativ e actua l annua l emission s o f an y criteri a pollutan t ove r level s use d fo r tha t sourc e i n th e mos t recen t ai r qualit yimpac t analysi s i nth e area , a perso nclaiming a genera l permi t shal l submi t informatio n sufficien t t o demonstrat e tha t th e following condition s wil l b e me t ... " 9
. Pag e 22 , §117.550(a)(5 ) - Thi s paragrap hrequire s source s t o submi t carbo nmonoxid e minimizatio nplans
. Simila r plan s shoul d b e require d fo r significan t increase s i nothe r criteri a pollutant s suc ha s volatil e organi c compounds
. Therefore , w e sugges t tha t thi s paragrap hb e revise d t o read , "Notic e o f th e inten t t o b e covere d b yth e genera l permi t mus t b e accompanie d b ya [GO ] minimizatio npla nfo r collatera l emissio nincreases , describin g effort s t o b e take n t o minimiz e increase s i n[GO ] emission s tha t wil l resul t frominstalling NO xabatemen t equipmen t o r implementing a NO xcontro l technique. " 10
. Th e propose d revision s t o §117.55 0 d o no t requir e source s t o offse t significan t collatera l emissio nincreases
. Th e treatmen t o f thes e emissio nincrease s mus t b e consisten t wit hth e State' s attainmen t demonstratio nplan
. Therefore , an yincrease s tha t ar e no t require d t o b e offse t shoul d b e accounte d fo r a s growt hfo r th e State' s planning purposes .P. 7

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- Sourc e Mas s Emission s Cap 11
. Th e EPAha s release d draf t guidanc e o nestablishin g plan t cap s (N0 xRAC T Trading Guidance , Jul y2 , 1993 , draft ) fo r th e purpose s o f complying wit hth e N0 xRAC T requirement
. Th e State' s proposa l appear s t o b e consisten t wit hou r draf t guidance , especiall ya s i t relate s t o th e followin g areas : establishing th e cap base d o naverag e actua l activit y levels , usin g th e lowe r o f actua l o r allowabl e emissio n rate s fo r previousl ypermitte d sources , restrictin g ho w shutdow nunit s mayb e incorporate d int o th e cap , restrictin g ho wunit s exemp t from th e N0 XRAC T rul e ca nb e brough t int o th e plan t cap , an

d requiring tha t th e area' s offse t rati o b e applie d fo r exemp t unit s brough t int o th e plan t cap . A s mentione d i nou r cove r letter , althoughw e d o no t anticipat e th e nee d fo r majo r changes , onc e th e EPA' s fina l guidanc e i s issued , thes e provision s wil l nee d t o b e reviewe d agai n fo r consistenc ywit hth e Federa l policy
. 12
. Pag e 26 , §117.580(b ) - Th e State,doe s no t defin e ho w"actua l historica l averag e hea t input " shoul d b e determine d by source s fo r th e purpos e o f setting th e cap . Th e EPA' s draf t guidanc e define s th e histori c actua l productio nas , "th e averag e o f th e productio ntha t occurre d i nth e tw o year s directl yprecedin g th e effectiv e dat e o f th e rule
. AStat e ma yselec t a differen t tw o yea r perio d tha t i s mor e representativ e o f norma l sourc e operation , bu t i nn o cas e ca nthi s includ e a tim e perio d befor e Novembe r 15 , 1990. " Th e Stat e maywan t t o defin e i nth e rul e ho wactua l historica l averag e hea t inpu t shoul d b e determined
.