Bryan W. Shaw, Ph.D., P.E., Chairman Toby Baker, Commissioner Richard A. Hyde, P.E., ExecutiveDirector 

### 15 JUL 13 PH 5: 24 TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing andPreventing Pollution July 10,2015

Ron Curry Regional Administrator U.S. Environmental ProtectionAgency -:- Region 6 1445 Ross Avenue Dallas, Texas 75202-2733 Dear Mr. Curry: Docket Nos. 2014-1262-SIP 2014-0501-RUL 2014-0707-RUL ProjectNos. 2013-015-SIP-NR 2013-048-115-AI 2013-049-117-AI

On June 3, 2015, the Texas Commission on Environmental Quality (Commission) adopted revisions to the St.ate Implementation Plan (SIP) for the control ofozone air pollutionfor the Dallas-Fort Worth (DFW) 2008 Eight-Hour Ozone NonattainmentArea. The Commission adopted the repeal of§115-417; new §115.410 and §115-411; and amendmentsto §§115.10, 115.110- 115.112, 115.114, 115.115, 115.117- 115.119, 115.121- 115.122, 115.125- 115.127, 115.129, 115.139, 115.215, 115.219, 115.229, 1115.239, 115-359, 115-415, 115-416, 115-419, 115-420

- 115-423, 115-425- 115-427, 115-429, 115-440- 115.442, 115-446, 115-449- 115.451, 115-453, 115.459- 115-461, 115-469, 115-471, 115-473, 115-479, and 115.519 in 30 Texas Administrative Code (TAC) Chapter115, Control ofAir Pollution from Volatile Organic Compounds; the amendments to §§117.10, 117.403, 117-400, 117-410, 117-423, 117-425, 117-430, 117-435, 117-440, 117-445, 117-450, 117-454, 117-456, 117.1303, 117.1310, 117.1325, 117.1335, 117.1340, 117.1345, 117.1350, 117.1354, 117.8000, 117-9030, 117-9130, 117.9800, and 117.9810; the repeal of§§117.200, 117.203, 117.205, 117.210, 117.215, 117.223, 117.225, 117.230, 117.235, 117.240, 117.245, 117.252, 117.254, 117.256, 117.1100, 117.1103, 117.1105, 117.1110, 117.1115, 117.1120, 117.1125, 117.1135, 117.1140, 117.1145, 117.1152, 117.1154, 117.1156, 117.9010, and 117.9110; and new §117-405 and §117.452 in 30 TAC Chapter 117, Control ofAir Pollution from Nitrogen Oxides; and corresponding revisions tothe SIP. The amendments to 30 TAC §§117.210(c), 117.225, 117.410(d), 117-425, 117.1110(b), 117.1125, 117.1310(b), and 117.1325, correspondto portions ofthe existing rule previously excluded from the EPA-approvedTexas SIP, are notbeing submittedto EPA as revisions tothe SIP. Similarly, adopted new §117-405(d) 

### will notbe submittedto the EPA as a SIP revision. The Commission also adoptedthe DFW 2008 Eight-Hour Ozone StandardAttainment Demonstration (AD) SIP Revision. The DFW 2008 Eight-Hour Ozone StandardAD SIP P.O. Box 13087 • Austin, Texas 78711-3087 • 512·239-1000 • tceq.texas.gov How is our customer service? tceq.texas.govjcustomersurvey pnnted on recycled paper us1ng vegetable-based mk

### revision incorporates the Chapter 115 and 117 rulemakings to fulfill reasonably available control technology (RACT) requirements for all control techniques guidelines (CTG) emission source categories and all non-CTG major sources ofVOC and NOx as requiredby FCAA, §172(c)(1) and §182(b)(2). The state has previously adopted Chapter 115 VOC and Chapter 117 NOx rules to satisfy RACT requirements for sources in the nine-county DFW area as partof the SIP for the 1997 eight-hour ozone stan9,ard. The rulemakings satisfy RACT requirements for Wise County andfor any sources identified inthe DFW area that are not already subject to the existing rules. This SIP revision includes the work completedto date to demonstrate thatthe DFW area will attain the 2008 eight-hour ozone NAAQS by 2018. The SIP revision also commits to development ofa 2017 AD SIP revision for the DFW 2008 eight-hour ozone nonattainment area for future submittal to the EPA. The 2017 AD SIP revision would include a photochemical modeling analysis, a weight ofevidence analysis, a reasonably available control measures (RACM) analysis, and a MotorVehicle Emissions Budget (MVEB). Because no additional analysis was neededto complete the contingency plan for attainment, Section 4.9, 

### Contingency Plan, was revised to reflect a 2017 attainmentyear. Enclosed are the proposed revisions tothe SIP, a public hearing certification, a complete record ofthe publichearings, andthe accompanying order. I look forward to your expeditious approval ofthese SIP revisions. Sincerely,

# ~.._.U~ct.v...r**~.Shaw,** Ph.D., P.E. Chairman BWS/alb Enclosures
cc: The Honorable Greg Abbott, Governor ofTexas Mr. John Zerwas, Office ofBudget, Planning and Policy, Office ofthe Governor Mr. RichardA. Hyde, P.E., Executive Director, Texas Commission on Environmental QualityTexas Commission on Environmental Quality Public Hearings January 15 and 22, 2015 Concerning Revisions to 30 TAC Chapter 117 Control of Air Pollution from Nitrogen Compounds NOx Eight-Hour Ozone Nonattainment Area Project No. 2013-049-117-AIINTRODUCTION
The Texas Commission on Environmental Quality (TCEQ or commission) held public hearings in Arlington on January 15, 2015 and in Austin on January 22, 2015, to receive testimony regarding 30 TAC Chapter 115, Control ofAir Pollution from Volatile Organic Compounds; Chapter 117, Control of Air Pollution from Nitrogen Compounds and corresponding revisions to the state implementation plan.

This hearing record contains revisions to Chapter 117, which implements reasonably available control technology (RACT) for all major sources of nitrogen oxides (NOx) in the Dallas- Fort Worth 2008 eighthour ozone moderate nonattainment area as required by Federal Clean Air Act, §172(c)( 1) and §182(f). The rulemaking extends implementation of RACT to major sources of NOx located in newly designated Wise County. Although not necessary to satisfy RACT requirements, the rulemaking provides compliance flexibility to testing requirements of Chapter 117 for temporary boilers and process heaters, and it clarifies the definition of electric power generating systems to distinguish rule requirements for independent power producers located in all Texas ozone nonattainment areas.

The comment period was originally set to close on January 30, 2015 but was extended to February 11, 2015. All testimony and comments have been reviewed and seriously considered. This hearing record contains a complete record of the public hearings and is divided into the following four sections:

o Public Notification and Proposal
o Written and Oral Testimony
o Evaluation of Testimony
o Staff Recommendations/OrderAdditional copies of this hearing record are maintained in the TCEQ central office at 12100 Park 35 Circle, Austin, Texas 78753. For further information, please contact Javier Galvan at (512) 239-1492.

# EVALUATION

# Texas Commission on Environmental Quality Interoffice Memorandum To: Thru:
From: Commissioners Bridget C. Bohac, ChiefClerk Richard A. Hyde, P.E., Executive Director Steve Hagle, P.E., Deputy Director Office ofAir 

### Date: May 15, 2015



### DocketNo.: 2014-0707-RUL 

### Subject: Commission Approval for Rulemaking Adoption Chapter 117, Control ofAir Pollution from Nitrogen Compounds NOx RACT Rules for the DFW 2008 Eight-Hour Ozone Nonattainment Area Rule Project No. 2013-049-117-AI 

### Background and reason(s) for the rulemaking: Under the 2008 eight-hour ozone National AmbientAir Quality Standard (NAAQS), the Dallas-Fort Worth (DFW) 2008 eight-hour ozone nonattainment area, consisting ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, andWise Counties, is classified as a moderate nonattainment area vvith a December 31, 2018 attainment deadline (77 FR 30088, May 21, 2012). As a result ofthe D.C. Circuit Court's ruling on December 23, 2014, the attainment date for the DFW moderate nonattainment area has been changedfrom December 31, 2018 to July 20, 2018. In addition, because the attainment year ozone season is the ozone season immediately preceding a nonattainment area's attainment date, the attainmentyear for the DFW moderate nonattainment area has changed from 2018 to 2017. However, this change in attainment dates does not impactthe compliance date ofJanuary 2017 for the nitrogen oxides (NOx) ReasonablyAvailable Control Technology (RACT) rulemaking. Nonattainment areas classified as moderate and above are required to meet the mandates ofthe Federal Clean Air Act (FCAA) under §172(c)(1) and §182(D. FCAA, §172(c)(1) requires thatthe state implementation plan (SIP) incorporate all reasonably available control measures, including RACT, for sources ofrelevant pollutants. FCAA, §182(D requires the state to submit a SIP revision that implements RACT for all major sources of NOx. The United States Environmental Protection Agency (EPA) defines RACT as the lowest emission limitation that a particular source is capable ofmeeting bythe application of control technologythat is reasonably available considering technological and economic feasibility (44 FR 53761, September 17, 1979). The FCAA requires the state to implement RACT, while EPA guidance provides states ·with the flexibility to determine the most technologically and economically feasible RACT requirements for a nonattainment area. The adopted rulemaking will revise Chapter 117 to implement RACT for all major sources ofNOx inthe DFW area as requiredby FCAA, §172(c)(1) and §182(D.Commissioners Page 2 May 15,2015 Re: Docket No. 2014-0707-RUL
The state previously adopted 30 Texas Administrative Code Chapter 117 RACT rules for sources in the DFW area as part ofthe SIP for the 1997 eight-hour ozone standard. However, Wise County was classified as attainment underthe 1997 eight-hour ozone standard so the Chapter 117 RACT rules do not currently apply inWise County. This rulemaking \vill implement RACT for major sources ofNOx located in newly designated Wise County andfor major sources ofNOx in the other nine counties ofthe DFW 2008 eight-hour ozone nonattainment areathat are not addressedbythe current Chapter 117 rules. Currently, the Texas Commission on Environmental Quality (TCEQ) and other concerned parties are challenging whether the EPA's inclusion ofWise County in the DFW 2008 eight-hour ozone nonattainment area was la\1\ful. These challenges are currentlypending in the United States Court ofAppeals for the District ofColumbia Circuit. Ifthe inclusion ofWise County in the DFW 2008 eight-hour ozone nonattainment area is overturned, the TCEQ will take action to revise this rulemaking appropriately. If adopted, the rule will be submittedto the EPA as a SIP revision. 

### Scope ofthe rule making: A.) Summaryofwhatthe rulemakingwill do: The adopted rulemaking will revise Chapter 117 to implement RACT requirements for all major sources ofNOx in the DFW area. The adopted rulemaking will revoke an exemption for utilityturbines and auxiliary steamboilers installed after November 15, 1992 in the DFW area, which previously relied on permittingto satisfy RACT requirements. The changes will rely instead on Chapter 117 rules to satisfy RACT andbe consistent with other Chapter 117 rules in the DFW area. For owners or operators ofboilers and process heaters used on a temporarybasis, the adopted rulemaking will provide compliance flexibility to affected units in all areas covered by Chapter 117. The rulemaking will also repeal certain major source industrial rules andutility rules for the DFW areathat are now obsolete due to the passing ofcompliance dates. Sources thatwere subject to these older rules are now required to comply with more stringent industrial andutility rules for the DFW area. The adopted rulemaking will implement only those RACT requirements that staffdetermines to be technologically and economically feasible. The adopted rulemaking will also establish emission limits and control requirements; implement work practice standards or operating requirements; require or update associated monitoring, recordkeeping, and reporting requirements; establish exemptions; and add other requirements necessaryto implement RACT. The rulemaking will add compliance dates for the new or revised RACT rules and add compliance dates for sources thatbecome subject to these rules after the initial compliance date. The rulemaking will also update existing compliance schedules and definitions to reflect the change in attainment status ofWise County. B.) 

### Scope requiredbyfederal regulations or state statutes: FCAA, §172(c)(1) and §182(f) requires the state to submit a SIP revision implementing RACT for all major sources ofNOx in the DFW area.Commissioners Page3 May 15,2015 Re: Docket No. 2014-0707-RUL 

### C.) Additional staffrecommendationsthat are not requiredbyfederal rule or state statute: While not specifically required to satisfy FCAA RACT requirements, the adopted rulemaking 'vill revoke an exemption for utilityturbines and auxiliary steam boilers installed after November 15, 1992 in the DFW area. The post-1992 exemption relies on permitting to satisfy RACT requirements. While this exemption was previously approved by the EPA, relying on the Chapter 117 rules to satisfy FCAA RACT requirements rather than on permitting provides a clearer RACT demonstration and is consistent mth the other Chapter 117 rules in the DFW area. Affected facilities in the nine-county DFW 1997 eighthour ozone nonattainment area currently exemptedunderthis provision already meetthe NOx emission specifications andtherefore, mll not needto install additional controls. Affected facilities inWise County also already meet the NOx emission specifications and vvill not need to install additional controls. The adopted rulemaking vvill also provide compliance flexibility to owners or operators ofa site thatuse temporaryboilers orprocess heaters for less than 6o consecutive calendar days, by allomngthe use ofprevious stacktest results conducted on the unitthatmll be newly installed or relocated atthe account or a manufacturer's guarantee ofperformance. The adopted changes mll be applicable to affected units in all areas covered by Chapter 117. Previous testing must conform to existing Chapter 117 stacktesting requirements, andthe owner or operator ofthe site must maintain at the site a record ofthe previous test report. While also not required to satisfy RACT requirements, the adopted rulemaking vvill revise the definition ofelectric power generating system to clarify the applicability ofindependent power producers in the ozone nonattainment areas. The revisions make clear that independent power producers located in the Houston-Galveston-Brazoria ozone nonattainment area ""ill be subject to the provisions in Subchapter B, Division 3, whereas such owners or operators located in eitherthe Beaumont-PortArthur ozone nonattainment area orthe DFW area mll be subject to the provisions in Subchapter C, Division 3. The changes are not intendedto expandthe definition. The adopted rulemaking will repeal Subchapter B, Dhision 2 and Subchapter C, Division 2, which have been made obsolete by the passing ofcompliance dates because sources previously subjectto these divisions are nowrequired to comply mth more stringent rules in Subchapter B, Division 4 and Subchapter C, Division 4, respectively. In addition, the rulemaking mll include other non-substantive revisions to Chapter 117 to remove obsolete language, use consistentterminology, and update the rule language to current 

### Texas Register and TCEQ style andformat requirements. 

### Statutoryauthority: The follomng provisions authorize the commission to adopt rules necessary to carry outits powers and duties: Texas Water Code (TWC), §5.102, General Powers, §5.103, Rules, and §5.105, General Policy (these provisions authorize the commission to adopt rules necessaryCommissioners Page4 May 15,2015 Re: Docket No. 2014-0707-RUL

to carry out its powers and duties underthe TWC); Texas Health and Safety Code (THSC), Texas Clean Air Act (TCAA), §382.017, Rules, which authorizes the commission to adopt rules consistent with the policy and purposes ofthe TCAA; THSC, §382.002, Policy and Purpose, which establishes the commission's purpose to safeguardthe state's air resources, consistent with the protection ofpublic health, general welfare, and physical property; THSC, §382.011, General Powers and Duties, which authorizes the commission to control the quality ofthe state's air; andTHSC, §382.012, StateAir Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. Also, THSC, §382.016, Monitoring Requirements; Examination ofRecords, authorizes the commission to prescribe requirements for owners or operators ofsources to make and maintain records ofemissions measurements; THSC §382.021, Sampling Methods and Procedures, authorizes the commission to prescribe the sampling methods and procedures; andTHSC §382.051 PermittingAuthority ofCommission; Rules, authorizes the commission to adopt rules as necessaryto comply with changes in federal law or regulations applicable to permits under THSC Chapter 382. The rule amendmentwill also be adoptedunder 42 United States Code, §§7401, 

### etseq., which requires states to submit SIP revisions that specify the manner in which the NAAQS vvill be achieved and maintainedwithin each air quality control region ofthe state. 

### Effect on the: A.) 

### Regulated community: The adopted rules will be applicable to owners or operators ofmajor stationary sources of NOx located in the DFW area. Because this adopted rulemaking 

### ""ill extend implementation ofRACT to all major sources ofNOx located inWise County, owners or operators ofany gas-fired engine, gas-fired turbine, or gas-fired process heater located in Wise Countywill be required to comply with the adopted rules. Most major sources ofNOx inthe other nine counties ofthe DFW 2008 eight-hour ozone nonattainment area are already subjectto Chapter 117 rule requirements that meet or exceed RACT. Owners or operators ofany wood-fired boilers located in the DFW area will be requiredto comply with the adopted rules; this is to incorporate any new major sources ofNOx in the other nine counties thatwere not addressed in previous RACT rulemakings. Only one wood-fired boiler, in Kaufman County, has been identified as being affected by the adopted rulemaking, andtheboiler already has controls meeting the adopted emission specification for wood-firedboilers. Owners or operators ofany auxiliary steam boiler or gas-fired turbine placed into service after November 15, 1992 will be required to complywith the adopted rules due to the removal ofan existing exemption for these electric utility generating sources in the DFW area. However, these facilities already comply with the applicable NOx emission specification, and additional controls will notbe necessary. The rulemaking will require owners or operators ofaffected sources to complywith the emission standards, conduct initial emissions testing or continuous emissions monitoringCommissioners Pages May 15, 2015 Re: Docket No. 2014-0707-RUL

to demonstrate compliance, install and operate a totalizing fuel flow meter, perform quarterly and periodic annual emissions compliance testing on engines, submit compliance reports to the TCEQ, and maintain the appropriate records demonstrating compliance with the adopted rules, including but notlimitedto fuel usage, produced emissions, emissionsrelated control system maintenance, and emissions performance testing. The first five years the rules are in effect was used in the fiscal analysis associated '"'i.th this adopted rulemaking. For the first year, an estimatedfiscal amount of $1,456,725 covers the capital costs associated with equipment purchase andlabor and installation and annual costs associated with emissions compliance testing and monitoring and equipment maintenance. The fiscal amount of $1,254,750 for years two, three, four, and five covers the costs ofemissions compliance testing and monitoring and equipment maintenance. Combined total capital andtotal annual costs for all affected units to comply with the adopted requirements ofthis rulemaking are estimated at $2,711,475, with total capital outlay estimatedto be $881,350 andtotal annual outlay estimatedto be $1,830,125. The cost effectiveness for the adopted emission reductions from all affected units is estimated at $1,563 per ton ofNOx reduced. No small businesses or individuals were identified as potentially affected, andthe adopted rulemaking is not expected to have any effect on a local economy. 

### B.) Public: The public benefit anticipatedfrom the changes seen in the adopted rules will be continued protection ofthe environment and public health and safety combined with efficient and fair administration ofNOx emission standards for the DFW area. Itis estimatedthat the adopted rules will reduce the amount ofNOx in the DFW area by 1.17 tons per day. 

### C.) Agencyprograms: The rulemaking may increase the workload for Office ofCompliance and Enforcement staff when inspecting affected facilities to verify compliance \'\i.th any new orre\i.sed Chapter 117 requirements. 

### Stakeholder meetings: An Ozone Planning Public Information Meeting was held atthe North Central Texas Council ofGovernments inArlington, Texas on September 5, 2013. 

### Public comment: The commission held public hearings on the rulemaking in Arlington on January 15, 2015 and in Austin onJanuary 22, 2015. The hearing in Austin was not officially openedbecause no partyindicated a desire to provide oral comment. The public comment period closed on February 11, 2015. The commission received written comments regarding the Chapter 117 NOx RACT rulemaking from Dal-Tile, the EPA, Luminant, Solar Turbines Incorporated (Solar), Texas Pipeline Association (TPA), and one individual. Significant public comments are summarized as follows.Commissioners Page 6 May 15,2015 Re: Docket No. 2014-0707-RUL

CD In the proposed rulemaking, the commission requested comment on the NOx monitoring requirements in existing §117-440(c) for ceramic tile kilns. Existing subsection (c) requires owners or operators ofa ceramic kiln ofany size to install, calibrate, maintain, and operate a continuous emissions monitoring system (CEMS) or a predictive emissions monitoring system (PEMS) to monitor exhaust NOx. DalTile commented thatthe requirementto use a CEMS or PEMS to demonstrate ongoing compliance shouldbe removed. Ongoing compliance for ceramic tile kilns would be more accurately and properly demonstratedvvith periodic stacktesting. 

### No changes are made in response to this comment. The existing continuousNOx monitoring requirement for ceramic kilns in the DFWarea was adopted to accommodate thepotential variability in emissions from ceramic kilns. The NOx monitoring requirements exist to ensure thatactual measureddata from monitoring for majorsources of NOx can be used for comparison to and compliance with the applicableNOx emission limit. Based on Dal-Tile's comments, staff agrees that the use of the CEMS upstream of the scrubber, which is the current location of the CEMS, couldpresentsome technical challenges. However, the commenter did notprovide sufficient technical justification to consider revising the rules or why the CEMS could not be relocated or replaced with a PEMS. • Dal-Tile also commentedthat it has no control over the test methods usedbythe supplierto determine fuel calorific value as requiredbythe stacktesting requirements of §117.8ooo(c)(6). Dal-Tile requested revising §117.8ooo(c)(6) to allow calorific values providedby natural gas suppliers to be fully compliant with the rules. 

### No changes are made in response to this comment. No changes were proposed to §117.8ooo(c)(6), and the suggested change is outside the scope of this rulemaking. The owner or operator has the flexibility to have a separate analysis performed to determine the fuel calorific value according to the specifiedmethods in the rule. The existingprovision also allows the source owner or operator to request an alternate methodas approved by the TCEQ executive director and the EPA.

o The EPA commented that natural gas-fired compressor engines inthe DFW ninecounty area and in East Texas counties relied on nonselective catalytic reduction, catalytic convertors, which typically require periodic changes ofcatalyst to maintain required NOx control levels. The EPA questioned whetherTCEQ performed any follow-up on affected sources to confirm that proper maintenance occurredto ensure NOx controls still metthe applicable NOx requirements.

### No changes are made in response to this comment. While the TCEQ has not initiateda targeted review of affected sources to confirm whetherproper maintenance is occurring to ensure thatNOx controls still meet the NOx control requirements, like the EPA, the TCEQ conducts regular enforcement and investigation activities that include evaluation of required maintenance. Staff considers the current quarterly emissions checks,periodic testing, recordkeeping, and reporting requirements for engines subject to the Chapter 117DFWindustrial rules and the East TexasCommissioners Page7 May 15,2015 Re: Docket No. 2014-0707-RUL


### Combustion rules, in SubchapterE, Division 4, to be sufficient to ensureproper operation and maintenance of catalyst controls. • The EPA commentedthat it cannot approve the proposed compliance schedule that states that upon publishing notice in the 

### Texas Register that Wise Countyis no longer nonattainmentfor the 2008 ozone standard, sources in Wise County are not required to comply vvith the NOx RACT rules inWise County for the DFW 2008 eight-hour ozone nonattainment area. The EPA indicated it cannot approve this provision because it does not contain "a replicable procedure" andto accomplish changing the applicability for sources inWise County, the state would needto undergo rulemaking and submit a subsequent SIP revision. 

### In response to this comment, the commission is replacing theproposed language "Wise County is no longer designated nonattainmentfor the 2008Eight-Hour OzoneNational AmbientAir Quality Standard" in §117.9030(a)(3) and in §117-9130(e) with "the Wise County nonattainmentdesignation for the 2008Eight-Hour OzoneNational AmbientAir Quality Standard is no longer legally effective." • Solar andthe TPA commentedthat for industrial turbines with a heat input less than so million British thermal units per hour, the NOx RACT limit for sources in Wise County shouldbe equivalentto the NOx limit of 150 parts per million (ppm). This is the NOx limit found in 40 Code ofFederal Regulations Part 6o, Subpart KKKK, the New Source Performance Standard (NSPS) for modified and reconstructed industrial combustion turbines. Solar andthe TP A commentedthat the proposed NOx emission limits are more stringentthan the NSPS. The proposed RACT requirements set a NOx limit of 122 ppm for similarly-sized industrial turbines, i.e., turbines ratedless than 4,500 horsepower (hp). Solar andthe TPA disagreedwith the commission's determination that no capital costs due to retrofits or combustion modifications were expected. Solar andthe TPA estimated RACT compliance costs to bebetween $2 million and $4 million for each ofthe four affected Solar turbines. In addition, Solar andthe TP A requested the commission maintain the 4,500 hp level as the thresholdfor units subject to the NOx standards, thereby creating an exemption thresholdbased on unit size, with a corresponding emission standard of 150 ppm, or approximately o.sslb/MMBtu. 

### Revisions are not being made to create an exemption threshold. However, the commission received commentsproviding detailed technical information from source owners and operators in Wise County indicating that some affected units rated at4,500 hp and greater but less than 10,000 hp may not be able to meet theproposed 0.20pound per million British thermal unit (lbjMMBtu) limit withoutmaking significant modifications or retrofits atsubstantial costs. Because staff determined thatno retrofits and no capital costs is RACT for industrial turbines in Wise County, the adopted rules are being revised to reflect the emission level achievable considering theperformance levels of the existing industrial turbines in Wise County. Specifically, a category is created for units rated at less than 10,000 hp, replacing theproposed category of 4,500 hp andgreater but less than 10,000 hp. The adoptedNOxRACTemission limit for the new unitcategory is 0.4slbjMMBtu.Commissioners Page 8 May 15,2015 Re: Docket No. 2014-0707-RUL

0 Solar andthe TPA opposedthe RACT compliance deadline ofJanuary 1, 2017 and suggested a phased-in compliance schedule to allow industrythe time to develop andimplement technology upgrades necessary to complywith proposed RACT standards. 

### No changes are made in response to this comment.An alternative compliance schedule is inconsistent with the EPA's required implementation deadline of January 1, 2017and is unnecessary at this time, especially given that the affected Wise County turbines are notexpected to require retrofits. • The TPA disagreed vvith the commission's analysis that 0.50 grams per horsepowerhour (g/hp-hr) represents RACT for gas-fired rich-burn engines. One TPA member determinedthat six engines could not meet the proposed NOx level even with additional catalyst. For a particular 1,680 hp engine, an emission control system conversion kit would cost $go,ooo for the engine to meet 0.50 g/hp-hr. The estimated cost per ton ofNOx reduced for this one engine was $11,100. The TPA therefore requested the commission establish 1.0 gjhp-hr as NOx RACT for Waukesha engines. 

### No changes are made in response to this comment. The $90,000 capital cost estimate would equate to approximately $54/hp, compared to the commission's overall estimate of $30/hp for new nonselective catalytic reduction systems. While this estimate is higher than the commission's, the commission still considers the TPA estimate to be economically feasible. The TPA did notappear to annualize the cost effectiveness estimate of $11,100. Furthermore, the analysis is based on aNOx reduction from 1.0 gjhp-hr to 0.50 gjhp-hr instead of from 2.0 gjhp-hr to 0.50 gjhp-hr. Site-specific data reported to the 2012 emissions inventory indicate the 1,680 hp engine operated ata level of 2.0 gjhp-hr. Using the TPA's cost information for the conversion kit, the commission estimates the costper ton for the engine to be $1,027. This includes annual operating andmaintenance costs andannualized capital costs. This estimate using the TPA's cost data is lower than the overall average of$1,563per ton the commission cited for all affected units in theproposed rulemaking. Significant changes from proposal:
0 In response to comments from the EPA, the compliance schedules regarding Wise County's nonattainment status were revised. The rule language "Wise County is no longer designated nonattainment for the 2008 Eight-Hour Ozone National Ambient Air Quality Standard" in §117.9030(a)(3) and in §117.9130(e) was replaced with "the Wise County nonattainment designation for the 2008 Eight-Hour Ozone National AmbientAir Quality Standardis no longer legally effective."

0 In response to comments from the TPA, units less than 4,500 hp and units equal to or greater than 4,500 hp andless than 10,000 hp were combined into one category ofunits less than 10,000 hp with a NOx standard of0-45lbjMMBtu. Staffretained the category ofunits equal to or greater than 10,000 hp 'vith a standard of0.15 lb/MMBtu.Commissioners Page 9 May 15,2015 Re: Docket No. 2014-0707-RUL


### Potential controversial concerns andlegislative interest: None 

### Does this rulemaking affect anycurrentpolicies orrequire development of newpolicies? No 

### What are the consequences ifthis rulemaking does not goforward? Are there alternatives to rulemaking? FCAA, §172(c)(1) and §182(f), requires the state to submit a SIP revision implementing RACT for all major sources ofNOx in the DFW area. Failure to submit a SIP revision could result in sanctions or promulgation ofa FIP. One alternative is to address the DFW area only and not clarify or clean up language that impacts other parts ofTexas. 

### Keypoints inthe adoption rulemaking schedule: 

### TexasRegisterproposal publication date: December 26, 2014 

### Anticipated 

### Texas Register adoption publication date: June 19, 2015 

### Anticipatedeffective date: June 25, 2015 

### Six-month 

### Texas Registerfiling deadline: June 26, 2015 

### Agency contacts: Javier Galvan, Rule Project Manager, (512) 239-1492, Air Quality Division Amy Browning, StaffAttorney, (512) 239-0891 Sherry Davis, Texas Register Coordinator, (512) 239-2141 

### Attachments

cc: ChiefClerk, 2 copies Executive Director's Office Marshall Coover Pattie Burnett Stephen Tatum Office ofGeneral Counsel Javier Galvan SherryDavisEVALUATION OF TESTIMONY
The Texas Commission on Environmental Quality (TCEQ, agency, or commission) adopts the amendments to §§117.10, 117-400, 117-423, 117-425, 117-430, 117-435, 117-440, 117-445, 117-450, 117-454, 117-456, 117.1303, 117.1310, 117.1325, 117.1335, 117.1340, 117.1345, 117.1350, 117.1354, 117.8000, 117.9800, and 117.9810; the repeal of §§117.200, 117.203, 117.205, 117.210, 117.215, 117.223, 117.225, 117.230, 117.235, 117.240, 117.245, 117.252, 117.254, 117.256, 117.1100, 117.1103, 117.1105, 117.1110, 117.1115, 117.1120, 117.1125, 117.1135, 117.1140, 117.1145, 117.1152, 117.1154, 117.1156, 117.9010, and 117.9110; and new §117-452 

### without changes to the proposedtext as published in the December 26, 2014, issue ofthe 

### Texas Register (39 TexReg 10337) and, therefore, vvill notbe republished. The commission adopts amendments to §§117-403, 117-410, 117.9030, and 117.9130; and new §117-405 

### with changes to the proposedtext.

The adopted new, amended, and repealed sections ofChapter 117 will be submittedto the United States Environmental ProtectionAgency (EPA) as a revision to the state implementation plan (SIP), exceptfor: §§117.210(c), 117.225, 117-405(d), 117-410(d), 117-425, 117.111o(b), 117.1125, 117.1310(b), and 117.1325. Sections 117.210(c), 117.225, 117-410(d), 117-425, 117.1110(b), 117.1125, 117.1310(b), and 117.1325 correspond to portions ofthe existing rule previously excluded from the EPA-approved Texas SIP and will notbe submittedwith this revision. Similarly, adopted new §117-405(d) will not be submittedto the EPA as a SIP revision.

1

### Background and Summaryofthe Factual Basisfor theAdopted Rules 

### General Background The 1990 Federal Clean Air Act (FCAA) Amendments (42 United States Code (USC), §§7401 

### etseq.) require the EPA to establish primary National AmbientAir Quality Standards (NAAQS) that protect publichealth andto designate areas as either in attainment or nonattainment with the NAAQS or as unclassifiable. States are primarily responsible for ensuring attainment and maintenance ofthe NAAQS once establishedby the EPA. Each state is required to submit a SIP to the EPA that provides for attainment and maintenance ofthe NAAQS.

On March 27, 2008, the EPA revisedboth the primary and secondary ozone standard (the eight-hour ozone NAAQS) to a level of0.075 parts per million (ppm) with an effective date ofMay 27, 2008 (73 FR 16436). On May 21, 2012, the EPA established initial air quality designations for the 2008 eight-hour ozone NAAQS. Effective July 20, 2012, the Dallas-FortWorth (DFW) 2008 eight-hour ozone nonattainment area, consisting ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, andWise Counties, was classified as a moderate nonattainment area with an attainment deadline ofDecember 31, 2018 (77 FR 30088, May 21, 2012).

On December 23, 2014the United States Court ofAppeals for the District ofColumbia Circuit (D.C. Circuit Court) ruled on a lawsuit filed bythe Natural Resources Defense Council, which resulted invacatur ofthe EPA's December 31 attainment date for the 2008 ozone NAAQS. As part ofthe EPA's Implementation ofthe 2008 National AmbientAir Quality Standards for Ozone: State Implementation Plan Requirements;
2Final Rule, published in the Federal Register on March 6, 2015 (So FR 12264), the EPA modified 40 Code ofFederal Regulations (CFR) §51.1103 consistent with the D.C. Circuit Court decision to establish attainment dates that run from the effective date of designation, i.e., July 20, 2012, ratherthan the end ofthe 2012 calendaryear. As a result, the attainment date for the DFW moderate nonattainment area has changedfrom December 31, 201S, to July 20, 201S. In addition, because the attainmentyear ozone
season is the ozone season immediately preceding a nonattainment area's attainment date, the attainmentyear for the DFW moderate nonattainment area has changedfrom 201S to 2017. The change in attainment date will not impact this rulemakingbecause the compliance date for implementing reasonably available control technology (RACT) remains January 1, 2017, as requiredbythe EPA's implementation rule for the 200S eight-hour ozone NAAQS (So FR 12264, March 6, 2015).

Nonattainment areas classified as moderate and above are required to meet the mandates ofthe FCAA under FCAA, §172(c)(1) and §1S2(f). FCAA, §172(c)(1) requires thatthe SIP incorporate all reasonably available control measures, including RACT, for
sources ofrelevant pollutants. FCAA, §1S2(f) requires the state to submit a SIP revision that implements RACT for all major sources ofnitrogen oxides (NOx).

The EPA defines RACT as the lowest emission limitation that a particular source is capable ofmeeting by the application ofcontrol technologythat is reasonably available considering technological and economic feasibility (44 FR 53761, September 17, 1979). The FCAA requires the state to implement RACT, while EPA guidance provides states with the flexibility to determine the mosttechnologically and economically feasible 3RACT requirements for a nonattainment area. The adopted rulemaking will revise Chapter 117 to implement RACT for all major sources ofNOx inthe DFW area as requiredby FCAA, §172(c)(1) and §182(±). The state previously adopted Chapter 117 RACT rules for sources inthe DFW area as part ofthe SIP submittedbythe state on May 30, 2007, for the 1997 eight-hour ozone standard, andthe EPA approved these rules on December 8, 2008 (73 FR 73562). However, Wise County was classified as attainment underthe 1997 eight-hour ozone standard, so the Chapter 117 RACT rules do not currently apply inWise County. The adopted rulemaking will extend implementation of RACT to major sources ofNOx located inWise County. These adopted rules will be submittedto the EPA as a SIP revision.

Underthe 1997 eight-hour ozone NAAQS, the DFW eight-hour ozone nonattainment
area consisted ofnine counties (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant) andwas classified as a serious nonattainment area. The EPA's implementation rule for the 2008 eight-hour ozone NAAQS requires retaining the most stringent major source emission thresholdlevel for sources in an areato prevent backsliding (So FR 12264, March 6, 2015). Forthis reason, the major source threshold for the nine counties remains the serious classification potential to emit (PTE) of50 tons peryear (tpy) ofNOx. ForWise County, the major source threshold is the moderate classification PTE of 100 tpy ofNOx.

The emission reduction requirements from this adopted rulemaking will result in reductions in ozone precursors in Wise County. The adopted compliance date for implementing control requirements and emission reductions for the DFW area is 

### 4January 1, 2017, as requiredbythe EPA's implementation rule for the 2008 eight-hour
ozone NAAQS (So FR 12264, March 6, 2015).
Adopted subchapters, divisions, and key sections with new requirements or modifications associated with the DFW 2008 eight-hour ozone RACT rulemaking include: SubchapterA, Definitions, §117.10; Subchapter B, Combustion Control at Major Industrial, Commercial, and Institutional Sources in Ozone NonattainmentAreas, Division 4, Dallas-Fort Worth Eight-Hour Ozone NonattainmentArea Major Sources, §§117-400, 117-403, 117-405, 117-410, 117-423, 117-425, 117-430, 117-435, 117-440, 117-445, 117-450, 117-452, 117-454, and 117-456; Subchapter C, Combustion Control at Major Utility Electric Generation Sources in Ozone NonattainmentAreas, Division 4, Dallas-Fort Worth Eight-Hour Ozone NonattainmentArea Utility Electric Generation Sources, §§117.1303, 117.1310, 117.1325, 117.1335, 117.1340, 117.1345, 117.1350, and 117.1354; Subchapter G, General Monitoring andTesting Requirements, Division 1, Compliance StackTesting and Report Requirements, §117.8000; and Subchapter H, Administrative Provisions, Division 1, Compliance Schedules, §117.9030 and §117.9130, and Division 2, Compliance Flexibility, §117.9800 and §117.9810.
Subchapters, divisions, and key sections adoptedfor repeal bythe commission associated with this rulemaking include all ofSubchapter B, Division 2, Dallas-Fort Worth Ozone NonattainmentArea Major Sources and Subchapter C, Division 2, DallasFortWorth Ozone NonattainmentArea Utility Electric Generation Sources.

The commission also adopts clarifications and minor revisions that will affect some 5sources in other areas covered by Chapter 117, such as changes to definitions andtesting provisions for compliance flexibility. These changes and other changes are adoptedto
ensure the appropriate monitoring, testing, recordkeeping, and reporting requirements for demonstrating compliance are in the rule provisions in addition to providing clarity and compliance flexibility to mvners or operators ofaffected units. These adopted changes are discussed in detail in the Section by Section Discussion section ofthis preamble.

SUBCHAPTER B: COMBUSTIONCONTROLAT MAJOR INDUSTRIAL, COMMERCIAL,ANDINSTITUTIONAL SOURCESIN OZONENONATTAINMENT AREAS DIVISION2: DALLAS-FORTWORTH OZONENONATTAINMENT AREAMAJOR SOURCES The commission adopts the repeal ofexisting Subchapter B, Division 2 because compliance dates for sources ofNOx subject to this division have passed and are now considered obsolete. Furthermore, sources previously subjectto this division are now required to complywith more stringentrules in existing Subchapter B, Division 4.

DIVISION4: DALLAS-FORTWORTHEIGHT-HOUR OZONENONATTAINMENT AREAMAJOR SOURCES The commission adopts revisions to Subchapter B, Division 4 to add emission control requirements for major industrial, commercial, or institutional (ICI) sources ofNOx in Wise County and for major ICI sources ofNOx in the other nine counties that were not addressed in previous RACT rulemakings. Forthe other nine counties, one newmajor 6ICI source ofNOxwas identified in Kaufman County. Adopted revisions to this division vvill require some owners or operators ofmajor ICI sources in Wise or Kaufman Counties to reduce NOx emissions from certain stationary sources and source categories to satisfy RACT requirements. ForWise County, a major source ofNOx is any stationary
source or group ofsources located\Nithin a contiguous area and under common control that emits orhas the PTE equal to or greater than 100 tpy ofNOx. For the remaining nine counties, a major source ofNOx is any stationary source or group ofsources located within a contiguous area and under common control that emits or has the PTE equal to or greaterthan 50 tpy ofNOx. In the adopted rulemaking, the stationary source type categories with controls in Wise County are process heaters, stationaryinternal combustion gas-fired engines, and stationary gas turbines. In Kaufman County, the stationary source type category with controls is wood-firedboilers. Adopted revisions to Subchapter B, Division 4 will also extend applicability ofexisting monitoring, testing, recordkeeping, and reporting requirements to the affected sources located inWise and Kaufman Counties. These requirements will be necessaryto ensure compliance with the adopted emission specifications andto ensure thatthe NOx emission reductions are achieved. Specific discussion associated with the adopted emission specifications and other requirements in adopted revised Subchapter B, Division 4 is provided in the Section by Section Discussion section ofthis preamble.

The commission estimates that this adopted rule will result in a reduction of 1.17tons per day ofNOxfrom major ICI sources inthe DFW area. Although the commission estimatedthis reduction amount from the affected sources, the emissions reductions from the control strategies adopted during this rulemaking were not included inthe 7attainment demonstration photochemical modeling associated vvith the 2015 DFW Attainment Demonstration SIP revision (Non-Rule Project No. 2013-015-SIP-NR) being adopted concurrent vvith this rulemaking. Inthe RACT rules adopted for the May 30, 2007 DFW SIP revision (Non-Rule Project No. 2006-013-SIP-NR), the state fulfilled NOx RACT requirements through adoption ofemissions specifications in §117-410 to demonstrate attainment for the nine counties ofthe DFW 1997 eight-hour ozone nonattainment area. Withthis adopted rulemaking, the commission fulfills NOx RACT requirements for the DFW 2008 eight-hour ozone nonattainment areabyimplementing the adopted requirements for major sources inWise County and Kaufman County.

SUBCHAPTER C: COMBUSTIONCONTROLAT MAJOR UTILITYELECTRIC GENERATIONSOURCESINOZONENONATTAINMENT AREAS DIVISION2: DALLAS-FORT WORTH OZONENONATTAINMENT AREA UTILITY ELECTRIC GENERATIONSOURCES The commission adopts the repeal ofexisting Subchapter C, Division 2 because compliance dates for sources ofNOx subjectto this division have passed and are now considered obsolete. Furthermore, sources previously subjectto this division are now required to comply vvith more stringent rules in existing Subchapter C, Division 4·

DIVISION4: DALLAS-FORT WORTHEIGHT-HOUR OZONENONATTAINMENT AREA UTILITYELECTRIC GENERATIONSOURCES The commission adopts revisions to Subchapter C, Division 4 requirements for utility electric generation sources in the DFW area. The commission is not adopting changes to the existing RACT emission specifications thatwere adopted as emissions specifications 8for attainment demonstration in the previous RACT rulemaking, as adopted in the May 30, 2007, DFW SIP revision. The commission adopts the repeal ofan existing exemption for auxiliary steamboilers and stationarygas turbines that were placed into service after November 15, 1992. This adopted revision makes the utility rules that apply to gas turbines in the DFW area consistentwith the major source industrial rules in the DFW area and provides a more efficient RACT demonstration for the affected utility
sources. Specific discussion associated with the adopted emission specifications and other requirements in adopted revised Subchapter C, Division 4 is provided in the Sectionby Section Discussion section ofthis preamble. With this adopted rulemaking, the commission implements andfulfills NOx RACT requirements for major sources in Wise County.

This adopted rulemaking v.rill include Wise County as part ofthe DFW 2008 eight-hour
ozone nonattainment area since itwas designated as nonattainmentbythe EPA in the final designations rule published in the 

### Federal Register on May 21, 2012 (77 FR 30088). However, the TCEQ and other concerned parties are currentlychallenging whetherthe EPA's inclusion ofWise Countyin the DFW 2008 eight-hour ozone nonattainment area was lawful. These challenges are currently pending in the D.C. Circuit Court. Because the TCEQ cannot predictthe outcome ofthis litigation atthis time, the commission adopts rules that will ensure that sources within Wise County\'\Till be properly accounted for in the DFW 2008 attainment demonstration SIP. Should Wise Countybe removedfrom the DFW 2008 eight-hour ozone nonattainment area afterthe adoption ofthese rules, the adopted rules will allow the commission to exempt
sources in Wise Countyfrom major source RACT requirements upon notice bythe 9TCEQ via publication in the 

### Texas RegisterthatWise County is no longer a part ofthe DFW 2008 eight-hour ozone nonattainment area.



### Section

### by Section Discussion In addition to the adopted amendments associated with implementing RACT for the DFW area and specific minor clarifications and corrections discussed in greater detail in this Section by Section Discussion, the adopted rulemaking also includes various stylistic, non-substantive changes to update rule language to current 

### Texas Register style and format requirements. Such changes included appropriate and consistent use of acronyms, section references, rule structure, and certain terminology. These changes are non-substantive and generally not specifically discussed in this preamble. Comments received regarding sections and rule language associated onlywith reformatting and minor stylistic changes were not considered, and no changes were made based on such comments.



### SUBCHAPTERA: DEFINITIONS Section 11J.10, 

### Definitions The commission**re,~ses** the definitions ofapplicable ozone nonattainment areas in §117.10(2). The commission adopts the removal ofexisting §117.10(2)(B), DFW ozone nonattainment area. The existing definition of"Dallas-Fort Worth ozone nonattainment area" includes Collin, Dallas, Denton, and Tarrant Counties. Divisions relating to this four-county DFW area have been made obsolete by the passing ofcompliance dates, and
sources ofNOx previously subject to these divisions are now required to comply with
more stringent rules in existing divisions relating to the expanded nine-county DFW 10area. The commission re-letters existing §117.10(2)(C), "Dallas-FortWorth eight-hour
ozone nonattainment area," to §117.10(2)(B), and existing §117.10(2)(D), "HoustonGalveston-Brazoria ozone nonattainment area," to §117.10(2)(C). The commission also revises the definition of "Dallas-Fort Worth eight-hour ozone nonattainment area." The existing definition of "Dallas-FortWorth eight-hour ozone nonattainment area" includes Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, andTarrant Counties. For the purposes ofChapter 117, Subchapter D, Combustion Control at Minor Sources in Ozone NonattainmentAreas, the revised definition ofthe DFW area includes Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties; and for all other divisions ofChapter 117, the revised definition ofthe DFW
area includes Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, andWise Counties. This adopted change to the definition of "Dallas-Fort Worth eight-hour ozone nonattainment area" is necessarybecause the commission did not apply the existing minor source rules to sources located in Wise County.

The commission revises the definition of "electric power generating system" in §117.10(14) to clarify the applicability ofindependent power producers in the ozone nonattainment areas. Systems that are owned or operatedby independent power producers and are located inthe Beaumont-PortArthur (BPA) ozone nonattainment
area or the 10-county DFW 2008 eight-hour ozone nonattainment area are subject to Chapter 117, Subchapter C. However, as the current definition in existing §117.10(14)(C) states, cogeneration units and independentpower producers in the Houston-GalvestonBrazoria (HGB) ozone nonattainment area are subject to the industrial, commercial, and institutional rules in Subchapter B.
11The commission therefore revises §117.10(14) to clarify this difference in applicability between the different ozone nonattainment areas for independentpower producers. The adopted revisions to subparagraph (A) add independent power producers but limit the applicability ofthe definition to only the BPA and DFW areas. Adopted changes to §117.10(14)(A) include removal ofexisting §117.10(14)(A)(ii), "Dallas-Fort Worth," consistentvvith the removal of §117.10(2)(B). The commission moves existing §117.10(14)(A)(iii), "Dallas-Fort Worth eight-hour," to §117.10(14)(A)(ii). Existing §117.10(14)(A)(iv), "Houston-Galveston-Brazoria," is removed to coincide with changes adopted in §117.10(14)(B) and in revised §117.10(14)(C). The commission therefore also
moves existing §117.10(14)(B) to amended §117.10(14)(D). To address electric power generating systems located in the HGB area subject to Chapter 117, Subchapter C, the commission modifies subparagraph (B) in §117.10(14). Adopted §117.10(14)(B) is necessaryto address specific combustion unit types that are part ofelectric power generating systems located inthe HGB ozone nonattainment areathat are subjectto Subchapter C, Division 3 while maintaining the distinction established under §117.10(14)(C) for independent power producers. The commission therefore also revises §117.10(14)(C) to clarify thatthe provision only applies to Subchapter B, Division 3 and to update the reference from revised §117.10(14)(A) to concurrent adopted §117.10(14)(B). These changes to §117.10(14) are adoptedto clarify the existing definition ofan "electric power generating system" and are not intendedto expandthe definition.

The commission revises the definition of "emergency situation" in §117.10(15)(A)(ii) and 12(vii) to update the references to the Electric Reliability Council ofTexas (ERCOT) Protocols to the most recent published version ofthe ERCOT Protocols, August 13, 2014.

The commission revises the definition of "large utility system" in §117.10(24) to remove the reference to "Dallas-FortWorth" as an applicable ozone nonattainment areato be consistent with the removal ofexisting §117.10(2)(B).

The commission revises the definition of "major source" in §117.10(29). Adopted changes to §117.10(29)(B) include the removal ofreference to "Dallas-Fort Worth" or "Dallas-FortWorth eight-hour ozone nonattainment area" and adding Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties as applicable counties. Adopted §117.10(29)(C) includes a new major source applicabilitythreshold of at least 100 tpy ofNOx for sources located in Wise County. These changes are necessary to be consistent with adopted §117.10(2)(B), concerning the revised definition of "Dallas-Fort Worth eight-hour ozone nonattainment area," andto reflect the difference inthe applicability thresholdbecause ofthe different classifications between Wise County and the other nine counties included in the DFW ozone nonattainment area. The commission also moves existing §117.10(29)(C) to §117.10(29)(D) and re-letters existing §117.10(29)(D) to §117.10(29)(E).
Adopted revisions to the definition of "small utility system" in §117.10(44) include the removal ofthe reference to "Dallas-FortWorth" as an applicable ozone nonattainment
areato be consistentwith the removal ofexisting §117.10(2)(B). 13The commission revises the definition of "unit" in §117.10(51). Adopted changes to §117.10(51)(A) include a reference to new §117-405, Emission Specifications for ReasonablyAvailable Control Technology (RACT), to define unit as anyboiler, process heater, stationary gas turbine, or stationary internal combustion engine, as defined in §117.10. In addition, revised §117.10(51)(A) includes removing references to repealed sections.
Finally, adopted changes to §117.10(51)(B) include deleting references to §117.210 and §117.1110 because these sections are repealed.

SUBCHAPTER B: COMBUSTIONCONTROLAT MAJOR INDUSTRIAL, COMMERCIAL,ANDINSTITUTIONAL SOURCES INOZONENONATTAINMENT AREAS DIVISION2: DALLAS-FORT WORTH OZONENONATTAINMENT AREAMAJOR SOURCES The commission adopts the repeal ofexisting Subchapter B, Division 2, which has been made obsolete by the passing ofcompliance dates because sources ofNOx previously subjectto this division are now required to comply with more stringent rules in existing Subchapter B, Division 4·

DIVISION4: DALLAS-FORTWORTHEIGHT-HOUR OZONENONATTAINMENT AREAMAJOR SOURCES To address new RACT requirements for sources ofNOx located inWise County, the 14commission adopts a new section, §117-405, in revised Subchapter B, Division 4 that will include new rules applicable to any major stationary source ofNOx inWise County. New NOx RACT requirements necessary for major stationary sources ofNOx in the other nine counties not already addressed under the current rules are included as adopted revisions to the existing §117-410. The commission did not expand the list ofapplicable unittypes at major ICI stationary sources ofNOx as it currently exists in §117-400 in revised Subchapter B, Division 4.



### Section 117.400,

### Applicability Adopted revisions to §117-400 clarify which unittypes located in specific counties in the revised DFW eight-hour ozone nonattainment area will be subjectto the adopted revisions ofSubchapter B, Division 4· Adopted §117-400(a) retains the list ofapplicable units located at major sources ofNOx in existing §117-400 and specifies that these units mustbe located at major sources ofNOx located in Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, orTarrant County. This change is necessaryto clarify that specific units located in the existing nine-county DFW eight-hour ozone nonattainment area will be subject to revised §117-410(a), with the exception ofthe one wood-firedboiler located in Kaufman County. The wood-fired boiler identified in Kaufman Countyin the calendar year 2012 TCEQ Point Source Emissions Inventory (2012 EI) 

### vvill be an applicable unit under revised §117-400(a) subjectto the NOx emission specification ofadopted new §117-405(a) as an ICI boiler.

The commission adopts §117-400(b) to specify the units located at major sources ofNOx located inWise County that

### vvill be subject to new §117-405(b). The adopted stationary 15source type categories are ICI process heaters, stationarygas turbines, and stationary internal combustion engines.

Section 117.403, Exemptions Adopted revisions to §117-403 clarify exemption criteria ofunits that will be exempt from specified requirements ofrevised Subchapter B, Division 4· To be consistentwith the adopted revisions in §117-400, the commission revises §117-403(a), which retains the list ofapplicable unit types, sizes, and uses in existing §117-403(a). The commission specificallylists Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, or Tarrant County in subsection (a) to make clear that the list ofexemptions provided in the subsection is only applicable in those counties andbecause exemptions applicable in Wise County are adoptedto be listed separately. Changes to existing §117-403(a)(4) are adoptedto facilitate consistency between the unit size exemptionthreshold in §117-403(a)(4) andthe existing definition ofmaximum rated capacity, as defined in §117.10. Adopted revisions to §117-403(a)(7)(A) and (B) are necessary to clarify thatthe exemption criteria for research andtesting and performance verification andtesting refer to research, testing, andperformance verification ofthe stationarygas turbine or stationary internal combustion engine itself.

Revisions to §117-403(a)(7)(D) are adopted in orderto clarifythat unit operation for testing or maintenance purposes up to 100 hours peryear refers to testing and maintenance ofthe stationarygas turbine or stationary internal combustion engine itself. In addition, the commission revises the operating hours limitfor exemption criteria for stationarygas turbines and stationary internal combustion engines from a 16rolling 12-month average to a rolling 12-monthbasis. The O"\\rner or operator ofan affected unit will sum all operating hours for a consecutive 12-monthperiod, and continue doing so on a rolling 12-monthbasis, as opposedto calculating the average of all operating hours during a consecutive 12-monthperiod. A 12-month rolling average would only apply to an hours per month limit, thus conflict with an hour peryearlimit while a 12-month rolling basis is the preceding 12-monthtotal, ·which matches the 100 hours peryear limit. This will more accurately reflect the intent ofthe rule and how an affected unit will demonstrate compliance with the operating restriction ofa total of 100 hours peryear. Similarlyto more accurately reflect the intent ofthe rule, revisions to existing §117-403(a)(8)(A) and (g)(A) are adoptedbythe commission to specifythatthe operating hours limit for exemption criteria for stationary diesel engines will be on a rolling 12-monthbasis and not on a rolling 12-month average and demonstrate how an affected unit \Vill demonstrate compliance \'Vith the operating restriction ofa total of 100 hours peryear. The owner or operator ofan affected unit\'Vill sum all operating hours for a consecutive 12-monthperiod, and continue doing so on a rolling 12-monthbasis,
as opposedto calculating the average ofall operating hours during a consecutive 12- month period.

The commission deletes existing §117-403(b), concerning increment ofprogress (IOP) exemptions, because the provisions reference existing §117-410(a), which is concurrently adoptedfor deletion bythe commission.The provisions ofdeleted §117-403(b) applyto gas-fired stationary, reciprocating internal combustion engines which, due to the passing ofcompliance dates, are now subject to more stringent rules in existing Subchapter B, Division 4· 17Adopted §117-403(b) specifies the unittypes, sizes, or uses for units located inWise County that will be exemptfrom the requirements ofthis division. The unittype, maximum rated capacity, or specific use ofa unit for which compliance with the adopted NOx emission specifications is technically or economically infeasible are exemptedfrom the provisions ofthis division, except as specified in revised §§117-440(i), 117-445(f)(4), and 117.450 and in new §117-452. The exceptions to the adopted exemptions are related to monitoring, recordkeeping, and control plan requirements associated with exempted units. Amended §117-403(b)(1) specifies that ICI process heaters \vith a maximum rated capacity ofless than 40 million British thermal units perhour (MMBtu/hr) will be exempted. This exemption level is adopted to be consistent\vith previous RACT exemption approaches for ICI process heaters located in the DFW area andthe HGB
area.

The following stationary gas turbines and stationaryinternal combustion engines 

### \'\>ill be exempt in adopted §117-403(b)(2)(A)- (E): gas turbines and engines used in research andtesting ofthe unit, usedfor purposes ofperformance verification andtesting ofthe unit, used solely to power other gas turbines or engines during startups; used exclusively in emergency situations (except that operation for testing or maintenance purposes of the gas turbine or engine itselfis allowed up to 100 hours per year, based on a rolling 12- monthbasis); or used in response to and during the existence ofany officially declared disaster or state ofemergency. These exemptions are adopted due to the limited number, ifany, ofthese unit types used in this dedicated service.

18Adopted §117-403(b)(3) specifies an exemption for any stationary diesel engine, and adopted §117-403(b)(4) specifies an exemption for any stationary dual-fuel engine. Both stationary diesel and dual-fuel engines 

### "\1\111 meetthe applicability criterion ofstationary internal combustion engine in adopted §117-400(b); however, no units ofthese types
were identified in the 2012 EI for Wise County; andthe commission did not adopt emission specifications for these unittypes.
Adopted §117-403(b)(5) specifies an exemption for stationarygas-fired engines ·with a horsepower (hp) rating ofless than 

### so hp. This is consistent with the size exemption threshold currently providedfor stationary gas-fired engines in the other nine counties ofthe nonattainment area previously established as a reasonable thresholdto exempt smaller engines from the NOx control requirements.
Finally, the commission adopts subsection (c) to contain new section cross-references to adopted §117-410(a)(1) and (c) and deletes the cross-references to existing §117-410(b)(1) and (d).



### Section 117.405, Emission Specifications for ReasonablyAvailable Control Technology (RACT) The commission adopts new §117-405, which establishes adopted NOx emission specifications to satisfy RACT requirements for units in the 10-county DFW 2008 eighthour ozone nonattainment area that will be subject to this rulemaking.
Adopted new §117-405(a) includes the new emission specification for wood-firedboilers 19located in the revised DFW eight-hour ozone nonattainment area. The adopted 0.12 pounds per million British thermal units (lb/MMBtu) emission specification for wood fuel-fired boilers is based on the permitted Best Available Control Technology limit for the unit identified in the 2012 EI, and it is anticipated to require ovvners or operators of affected units to possibly install and operate selective catalytic reduction (SCR). The unit identified in Kaufman County in the 2012 EI currently operates vvith SCR for NOx control and uses a continuous emissions monitoring system (CEMS) for monitoring NOx emissions. While the commission contends this emission standard satisfies RACT for this particularwood fuel-fired boilerbecause the facility has already installed the controls necessary to meetthe requirement, the commission does not contendthat SCR represents RACT on wood fuel-fired boilers in general.
Adopted new §117-405(b) includes the new emission specifications that \vill apply to the follmving unittypes at major ICI stationary sources ofNOxlocated inWise County: process heaters; stationary, reciprocating internal combustion engines; and stationary gas turbines. Adopted new §117-405(b)(1) will establish the NOx emission specifications of0.10 lb/MMBtu (or alternatively, 82 parts per million byvolume (ppmv), at 3.0% oxygen (Oz), drybasis) for process heaters vvith a maximum rated capacity equal to or greater than 40 MMBtujhr. Combustion modifications, such as dry low-NOx combustors, maybe necessaryfor process heaters vvith a maximum rated capacity equal to or greaterthan 40 MMBtu/hr to complyvvith the adopted 0.10 lb/MMBtu emission specification. No liquid-fired process heaters were identified in the 2012 EI in Wise County; however, combustion modifications maybe necessary for a liquid-fired process heater to comply with the adopted NOx emission specifications in new §117-405(b)(1). 20Adopted new §117-405(b)(2) provides NOx emission specifications for stationary, reciprocating internal combustion engines. The newlanguage in §117-405(b)(2)(A) and (B) will establish NOx emission specifications for stationary, gas-fired rich-burn and lean-burn, reciprocating internal combustion engines. Gas-fired, rich-burn engines will be limitedto 0.50 grams per horsepower-hour (g/hp-hr) in new §117-405(b)(2)(A). The adopted emission specifications for some gas-fired, lean-burn engines in §117-405(b)(2)(B) vvill bebased on specific engine process parameters andthe date the engine was placed into service, modified, reconstructed, or relocated. Any White Superior, model8GTL825, gas-fired, lean-burn four-cycle engines placed into service, modified, reconstructed, or relocated before June 1, 2015, will be limitedto 12.0 g/hphr, and on or after June 1, 2015, will be limitedto 2.0 gjhp-hr. Any Clark, model HBAGT
or HBA-6, gas-fired, lean-burn two-cycle engines placed into service, modified, reconstructed, or relocatedbefore June 1, 2015, will be limitedto 12.0 g/hp-hr, and on
or after June 1, 2015,

# '"ill be limitedto 2.0 g/hp-hr. Finally, any Fairbanks Morse, model MEP-8T, gas-fired, lean-burn two-cycle engines placed into service, modified, reconstructed, or relocated before June 1, 2015, will be limitedto 4.0 g/hp-hr, and on or after June 1, 2015, will be limited to 2.0 g/hp-hr. All other gas-fired, lean-burn engines will be limitedto 2.0 g/hp-hr, regardless ofthe date which the engine is placed into service modified, reconstructed, or relocated.

Nonselective catalytic reduction (NSCR), with an air-to-fuel ratio (AFR) controller, is expected to be the primary control technology for gas-fired, rich-burn engines. In some cases, the addition ofa secondary catalyst module maybe required to meetthe adopted 21emission specification. The commission contends that the o.so g/hp-hr emission specification represents RACT for gas-fired, rich-burn engines based on the low cost and vvide-spread demonstrated effectiveness ofNSCR with meeting this control level.

The commission adopts specific NOx emission specifications based on engine make and model for the White Superior, Clark, and MEP units due to the follmving: engine manufacturers today produce few, ifany, ofthese engine makes and models; retrofit options orkits to reduce NOx emissions may not exist for some ofthese particular makes and models; some units may have already undergone combustion modifications, such as low-emission combustion technology, to reduce emissions andthus maybe unable to further reduce NOx emissions; and, in some cases, the cost to retrofit the unit maybe more than the cost ofa new unit. The commission therefore contends thatthese adopted emission levels for these specific units will satisfy RACT requirements considering technological and economic feasibility. For all other lean-burn engines, the commission anticipates that affected units vvill require combustion modifications to complyvvith the adopted 2.0 g/hp-hr emission specification, ifnecessary. Any new gasfired, lean-burn engines installed inWise County shouldbe able to meetthe adopted 2.0 g/hp-hr standardwithout modification or installation ofadditional controls.

The commission acknowledges thatthe current emission specifications for stationary gas-fired, lean-burn engines in the other nine counties ofthe DFW eight-hour ozone nonattainment area are between 0.50 and 0.70 g/hp-hr and are more stringentthanthe emission specifications adopted for Wise County. However, the commission does not consider this control level to represent RACT for the gas-fired, lean-burn engines in
22Wise County. In proposing the emission specifications for gas-fired, lean-burn engines in the nine-county DFW 1997 eight-hour ozone nonattainment area in December 2006, the commission acknowledged that meeting this control level may necessitate the installation ofSCR technology ((31 TexReg 10599) December 29, 2006, issue ofthe 

### Texas Register). SCR would cost more than the technologies already evaluated for the particular stationary engines inWise County and would likely result in the replacement ofmany ofthe gas-fired, lean-burn engines in Wise County. Such an outcome is contrary to the definition ofRACT, i.e., the lowest emission limitation that a particular source is capable ofmeetingby the application ofcontrol technologythat is reasonably available considering technological and economic feasibility. A control level cannot represent RACT for a "particular source" ifit is more cost-effective to replace that source \vith an entirely new source in order to meetthe emission limitation. The commission's adoption ofthe emission specifications for gas-fired, lean-burn engines in the nine-county DFW 1997 eight-hour ozone nonattainment area represented an appropriate control measure to help the area reach attainment\\ith the 1997 eight-hour ozone NAAQS. However, control measures necessaryto reach attainment can, and may, go beyond RACT requirements. Some ofthe NOx control requirements adopted in 2007for the DFW 1997 ozone NAAQS attainment demonstration were based only on RACT level ofcontrol and some, such as the emission specifications for gas-fired lean-burn engines, were beyond RACT. While the commission did not make this distinction in adopting the 2007 rulemaking and only indicatedthatthe NOx emission specifications would fulfill RACT, the distinction is necessary to make clear the commission's intentfor RACT in Wise County. Additionally, the commission is allowed to make source-specific RACT determinations, as the definition ofRACT states. The commission contends thatthe 23NOx emission specifications in adopted §117-405(b)(2)(B) present RACT for the particular gas-fired lean-burn engines inWise County.

The commission did not identify in Wise County any gas-fired engines fired on land-fill gas or any diesel fuel-fired or dual fuel-fired engines in the 2012 EI. Therefore, the commission did not adopt NOx RACT requirements for these categories ofstationary engmes.

The commission adopts new §117-405(b)(3) for NOx emission specifications for stationary gas turbines inWise County. Stationary gas turbines ""ith a hp rating ofless than 10,000 hp will be limitedto 0.55lbjMMBtu, and stationary gas turbines \vith a hp rating of 10,000 hp or greater will be limitedto o.15lbjMMBtu. These limits for industrial gas turbines are based on information identified in the 2012 EI similar to the approach used for gas-fired lean-burn engines, as well as on comments and supplemental information providedby affected source owners and operators: retrofit options orkits to reduce NOx emissions may not exist for some ofthese particular makes and models; some units have already been retrofitted with drylow-NOx combustors to reduce emissions and thus maybe unable to further reduce NOx emissions; and in some cases the cost to retrofit the unit maybe more than the cost ofa
newunit. In response to comments, the commission is eliminating both the proposed unit size category ofindustrial gas-firedturbines with a rating ofless than 4,500 hp in subsection (b)(3)(A) andthe proposedunit size category for units with a rating of4,500 hp or greaterbutless than 10,000 hp in subsection (b)(3)(B). The commission is replacing the unit size categories in proposed subsection (b)(3)(A) and (B) with a unit 24size category ofless than 10,000 hp as adopted subsection (b)(3)(A). The corresponding NOx emission limit is o.sslb/MMBtu. The commission retains the unit size category for units V\rith a rating of 10,000 hp or greater andthe corresponding NOx emission limit of o.1slbjMMBtu, as proposed. To accommodate the changes in proposed subsection (b)(3)(A) and (B), the commission re-letters proposed subsection (b)(3)(C) as adopted subsection (b)(3)(B) mth no substantive changes.

Based on supplemental data and information providedby affected source ovvners and operators ofthese units in Wise County, the commission determinedthat some affected units may notbe able to meetthe proposed NOx RACT emission standard of0.20 lb/MMBtu mthout making significant modifications or retrofits at substantial costs. The commission determined at proposal that these costs did not represent RACT for industrial turbines in Wise County. The commission's assessment ofongoing emissions performance was based on existing emissions data in the 2012 EI, which the commission usedto propose the NOx RACT standards for industrial turbines in Wise County. This assessment may have been too conservative for the mid-size category of turbines rated 4,500 hp or greaterbutless than 10,000 hp. Additional information provrided by commenters indicatedunit performance variability among various turbine model ratings, and stacktest data provrided by an affected source owner or operator for specific units identified inWise County, indicated greater unit-specific performance variability. The commission therefore determined that o.sslb/MMBtufor units rated less than 10,000 hp is an appropriate RACT control level considering current performance levels ofexisting units inWise County and is consistent with the commission's determination ofRACT at proposal. Based on the revised NOx emission 25specifications, the commission contends thatthe adopted emission levels for both unit size categories satisfy RACT requirements consideringtechnological and economic feasibility.
Adopted new §117-405(c), concerning NOx averaging time, specifies the averaging times for compliance with the emission specifications ofnew §117-405(a) and (b). New §117-405(c)(1) specifies the averaging time for units equipped vvith CEMS orpredictive emissions monitoring systems (PEMS) and provides three options under subparagraphs (A)- (C). Adopted subparagraph (A) specifies a rolling 30-day average, in units ofthe applicable emission standard. Adopted subparagraph (B) specifies a block one-hour average basis, in the units ofthe applicable emission standard. Adopted subparagraph (C) specifies a block one-hour average, in pounds per hour, for boilers and process heaters, calculatedbased on the maximum rated capacity andthe applicable emission specification. For units not equipped with CEMS or PEMS, adopted new §117-405(c)(2) requires the averaging time to be a block one-hour average in the units ofthe applicable emission standardbut allows the emission specifications for boilers and process heaters to be applied in pounds per hour as specified in new §117-405(c)(1)(C).

The commission adopts new §117-405(d) thatvvill establish emission specifications for related emissions from anyunit subjectto the emission specifications in new §117-405(a) or (b). This is necessaryto ensure thatthe NOx reduction strategies ofthis adopted rulemaking do not result in a significant increase in emissions ofother pollutants. Adopted new §117-405(d)(1) establishes a carbon monoxide (CO) emission specification of400 ppmv at 3.0% Oz, drybasis (or alternatively, 3.0 g/hp-hr for 

### 26stationaryinternal combustion engines; or 775 ppmv at 7.0% 02, drybasis for wood fuel-fired boilers or process heaters) on a rolling 24-hour averaging periodfor units equipped vvith CEMS or PEMS for CO, and on a block one-hour averaging periodfor units not equipped with CEMS or PEMS for CO. Adopted new §117-405(d)(2) specifies that units that inject urea or ammonia into the exhaust stream for NOx control must meet a 10 ppmv ammonia emission specification. The 10 ppmv ammonia emission specification is correctedto 3.0% 02, dry, for boilers and process heaters; 15% 02, dry, for stationary gas turbines and gas-fired lean-burn engines; and 3.0% 02, dry, for all other units. The specified averaging time for the ammonia emission specification is on a rolling 24-hour averaging periodfor units equipped with CEMS or PEMS for ammonia and on a block one-hour averaging periodfor units not equippedvvith CEMS or PEMS for ammonia. Adopted new subsection (d)(3) specifies that the correction ofCO emissions to 3.0% 02, dry basis, does not apply to boilers or process heaters operating at less than 10% ofmaximum load and with stack 02 more than 15%.
Adopted new §117-405(e) specifies conditions for compliance flexibility with the NOx emission specifications ofnew §117-405. Adopted new §117-405(e)(1) specifies that
owners or operators may use the source cap option under revised §117-423 or emission reduction credits as specified in revised §117.9800 to comply with the NOx emission specifications ofnew §117-405(a) or (b). Adopted new subsection (e)(2) prohibits using revised §117-425 as a method ofcompliance vdth the NOx emission specifications of adopted new §117405(a) or (b). This prohibition is necessary to ensure that the NOx reductions anticipated from this adopted rulemaking will be realized. Adopted new subsection (e)(3) specifies that ovvners or operators may petition the executive director 27for an alternative to the CO and ammonia emission specifications ofadopted new §117-405(d) according to revised §117-425.

The commission adopts new §117-405(f) to establish provisions for prohibition of circumvention to ensure thatthe anticipated NOx emission reductions associated with this adopted rulemaking will be realized. The adopted new subsection (f)(1) establishes thatthe maximum rated capacityusedto determine the applicability ofthe emission specifications in new §117-405, the initial compliance demonstration in revised §117-435, the monitoring andtesting requirements in revised §117-440, andthe final control plan requirements in new §117-452, respectively, mustbe the greater ofthe maximum rated capacity as ofDecember 31, 2012, the maximum rated capacity after December 31, 2012,
orthe maximum rated capacity authorizedby a permit issued under 30 TAC Chapter 116 after December 31, 2012. Adopted new §117-405(±)(2) specifies that a unit's classification for the purposes ofrevised new Subchapter B, Division 4, is determinedbythe most specific classification applicable to the unit as ofDecember 31, 2012. Finally, new §117-405(±)(3) specifies that a source that met the definition ofa major source as of December 31, 2012, is always classified as a major source for the purposes ofrevised Subchapter B, Division 4. A source that did not meetthe definition ofmajor source on December 31, 2012, butwhich at any time after December 31, 2012, becomes a major source, will from thattime forward always be classified as a major source for purposes ofrevised Subchapter B, Division 4.



### Section 117.410, 

### Emission Specifications for Eight-HourAttainmentDemonstration The commission removes existing §117-410(a) and moves existing §117-410(b), Emission 28specifications for eight-hour ozone attainment demonstration, to §117-410(a). The commission establishedthe emission specifications under existing §117-410(a) for stationary, gas-fired rich-burn andlean-burnreciprocating internal combustion engines with a maximum rated capacity of300 hp or greater under the 5% lOP plan for the nine counties in the existing DFW 1997 eight-hour ozone nonattainment area. With the passing ofthe compliance date for eight-hour ozone attainment demonstration emission specifications in existing §117.9030(b), these gas-fired engines are now subject to emission specifications for eight-hour ozone attainment demonstration in existing §117-410(b). In addition, the commission specifically lists Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, or Tarrant County in revised subsection (a) to make clear that the emission specifications provided in the subsection are only applicable in those counties andbecause emission specifications applicable inWise County are listed separately.

Because ofthe removal ofsubsection (a), all other subsections are re-lettered accordingly. In addition, the commission inadvertently omittedParker County from the list ofcounties in revised subsection (a) in the proposal publication ofthe rulemaking. The commission has included Parker County inthe adoption ofrevised subsection (a).

Revisions to existing §117-410(b)(7)(A) include updating the reference in the figure to revised §117-410(a)(7)(A) to coincide with the adopted incorporation ofexisting §117.410(b) into revised §117-410(a).

Revised §117-410(c) establishes NOx emission specifications for related emissions from 

### 29any unit subject to the emission specifications in revised §117-410(a). The commission deletes existing subsection (d)(4)(A) to be concurrentwith the amendment ofexisting §117-410(a) and also because the IOP standards for the nine counties in the existing DFW area are being amended. In addition, the commission moves the provisions in existing subsection (d)(4)(B) to revised §117.410(c)(4)(A)- (C) because the restructuring ofparagraph (4) is necessary to conform to Texas Register formatting requirements.
Adopted revisions to existing §117-410(±)(5) include updating the reference from existing §117-410(b)(14) to revised §117-410(a)(14) to coincide ·with the adopted incorporation of existing §117-410(b) into revised §117-410(a). Lastly, the commission deletes existing §117-410(±)(6) since stationary gas-fired engines are no longer subjectto existing §117-410(a). These gas-fired engines are now subject to provisions in existing §117-410(b), which is moved to revised §117-410(a).

In §117-410(±), the commission clarifies that testing or maintenance associated ·with the operating restriction ofany stationary diesel or dual-fuel engine for testing or maintenance between the hours of6:00a.m. and noon refers to testing or maintenance ofthe engine itself.

Section 117.423, Source Cap The commission revises §117-423(a) to incorporate references to new §117-405, Emission Specifications for RACT. The source cap approach is an option providedto
owners or operators ofaffected units for demonstrating compliance with the NOx emission specifications ofadopted new §117-405 in addition to those ofrevised §117-410. 30Revised §117-423(b) specifies the equations and procedures for determiningthe source cap allowable NOx mass emission rate. The equation in revised §117-423(b)(1) specifies howto calculate the 30-day rolling average emission cap in pounds per day. Adopted revised §117-423(b)(1) contains new section cross-references to new §117-405. Revised subsection(b)(1) also defines the averaging periodfor determining the historical average daily heat input, variable Hi, as the 24 consecutive months between January 1, 2012, and December 31, 2013, for units subject to new §117-405. In addition, the effective date for
an applicable permit emission limit in Figure: 30 TAC §117-423(b)(1) for clause (ii) of variable Ri for units subject to new §117-405 is December 31, 2012. The commission adopts the new date and date range to make clear the dates that will apply to units subjectto new §117-405 andthe existing date and date range in existing subsection (b)(1) that apply to units subjectto §117-410.

Revised Figure: 30 TAC §117-423(b)(4) contains an update to the equation for calculating the source cap allowable emission rate, in pounds per hour, for stationary internal combustion engines. The commission revises the exponential power in the equation from a positive to a negative number. This change will allow the units, Btu and MMBtu, ofthe equation to properly cancel. Withoutthis change, the equation will calculate a value that will misrepresent the cap that is intendedbythe existing rule.

Revised §117-423(b)(5) specifies the equations for calculating the source cap allowable emission rate, in pounds per hour, for stationary gas turbines. The commission deletes the section cross-reference to existing §117.410(b) in the equation and adds new section 31cross-references to new §117-405 and revised §117-410 to reflect changes adopted in those sections.

Revised §117-423(g) includes section cross-references to new §117-405 for conditions for including a permanentlyretired, decommissioned, or rendered inoperable unit inthe
source cap. Adopted revisions to subsection (g)(1) specifythat the shutdown must have occurred after December 31, 2012, for units subjectto new §117-405. In addition for units subject to new §117-405, ifthe unit was not in service 24 consecutive months between January 1, 2012, and December 31, 2013, adopted revised subsection (g)(3) specifies the actual heat input mustbethe average daily heat input for the continuous time periodthat the unit was in service, consistent with the heat input usedto represent the unit's emissions in the 2012 modeling inventory. The commission adopts the new date and date range to make clear the dates that will apply to units subject to new §117-405 andthe existing date and date range in existing subsection (g) that apply to units subject to §117-410. The years used for the rule represent the year associated with the level ofactivity ofthe units participating in the cap andthe baseline that is establishedfor modeling emissions at the time the regulations are developed. The cap is thenbased on thatyear.



### Section 117.425,

### Alternative Case Specific Specifications The commission revises existing §117-425(a), which provides procedures concerning alternative case specific specifications, by including new section cross-references to new §117-405(d) and a corrected reference to §117-410(c). Adopted revisions to paragraph (2) include a section cross-reference to new §117-405. 32

### Section 117.430, Operating Requirements The commission revises existing §117-430, which establishes operating requirements for
sources subject to revised Subchapter B, Division 4. Adopted revised subsection (b) adds
a section cross-reference to new §117-405. Additional changes to revised subsection (b) include deleting the reference to existing §117-410(a) and (b) and adding a reference to revised §117-410.



### Section 117-435, Initial Demonstration of Compliance The commission adopts revisions to existing §117-435, which details the monitoring and testing procedures required to demonstrate compliance vvith the emission specifications ofSubchapter B, Division 4· Adopted revised §117-435(c) replaces the reference to "relative accuracy test audit" (RATA) vvith the more general term, "monitor certification." This change clarifies thatverification ofoperational status must include completion ofthe initial monitor certification, which includes not onlythe RATA but also the seven-day drift test.



### Section 117-440, Continuous Demonstration of Compliance Adopted revisions to §117-440(a)(1), which details the list ofunits thatwill be subjectto the fuel metering requirements ofrevised §117-440(a), adds a section cross-reference to
new §117-405, concerning emission specifications for RACT. The commission is also clarifying that operation ofthe totalizing fuel flow meter in conjunction with the unit operating time is nottime averaged over a calendaryear butinstead continuous operating time during a calendaryear that is representative ofthe total fuel meter 33operatingtime. This total fuel meter operatingtime must still be at least 95% ofthe time thatthe unit operates. In addition, the commission adopts revised §117-440(a)(1)(A) to provide an exemption for wood-firedboilers to the fuel flow metering requirements of existing subsection (a)(l). Instead ofinstalling and operating a totalizing fuel flow meter, owners or operators ofwood-firedboilers in the 10-county DFW 2008 eight-hour
ozone nonattainment area will demonstrate compliance with the monitoring provisions ofrevised Subchapter B, Division 4 through either fuel use records that\vill be required in adopted revised §117-445CD orthe alternative monitoring provision ofexisting §117-440(a)(2)(A). As mentioned previously inthis preamble, the one wood-fired boiler identified in Kaufman County currently operates with SCR and a NOx CEMS.

Provisions in existing subsection (c) specify the units for which owners and operators shall install and operate a CEMS or PEMS to monitor NOx exhaust, criteria for exempt units, and methods to be usedto provide substitute emissions compliance data during periods when the NOx monitors are offline. Adopted revisions to subsection (c)(l) include adding section cross-references to new §117-405(a) and (b) and revised §117-410(a) and deleting references to existing §117-410(b). Adopted revised §117-440(d), concerning ammonia monitoring requirements, adds section crossreferences to new §117-405(a) and (b) and new §117-410(a) and deletes a reference to existing §117-410(b). In addition, the commission adds a reference to new §117-405(d)(2) to be consistent with the new §117-405.
During the rulemaking proposal, the commission requested comments on alternatives, such as periodic testing, to the existing provisions ofthe NOx monitoring requirements 34ofexisting §117-440(c) for ceramic tile kilns. The commission received comments for changes to existing §117-440(c); however, the commission made no changes in response to these comments. Existing subsection (c) requires owners or operators ofa ceramic kiln to install, calibrate, maintain, and operate a CEMS or PEMS to monitor exhaust NOx.
Adopted revised §117-440(j), concerning data used for compliance, specifies that the methods required in adopted §117-440 mustbe usedto demonstrate compliance with the emission specifications after the initial demonstration ofcompliance requiredby revised §117-435. The commission adds references to new §117-405(a) and (b) and new §117-410(a) and deletes the reference to existing §117-410(b).
Finally, adopted revised §117-440(k) specifies the testing and retesting requirements for units subject to the emission specifications ofnew §117-405(a) or (b) or revised §117-410(a). The commission deletes existing paragraph (1), which has nowbeen made obsolete bythe passing ofcompliance dates in existing §117.9030(a) and also contains provisions for units subjectto existing §117-410(a). The amendment ofparagraph (1) vvill be concurrentwith the adopted amendment ofexisting §117-410(a) and existing §117.9030(a), concerning IOP emission specifications. The commission moves existing subsection (k)(2) to subsection (k)(1). In addition, the commission adds new references to new §117-405(a) and (b) and revised §117-410(a) and removes the reference to existing §117-410(b). Adopted new paragraph (1) requires the owner or operator ofunits subjectto the emission specifications ofnew §117-405(a) or (b) or revised §117-410(a) to testthe units as specified in revised §117-435, "Initial Demonstration ofCompliance," in 35accordance "\vith the schedule specified in adopted revised §117.9030. The commission
moves existing paragraph (3) to adopted paragraph (2). Adopted changes also include references to new §117-405(a) and (b) and revised §117-410(a) with removal ofthe reference to existing §117.410(b). Amended subsection (k)(2) is a retesting requirement for OYI'llers or operators to retest any unit subjectto the emission specifications ofnew §117-405(a) or (b) or revised §117-410(a) after any modification that couldbe reasonably expected to increase the NOx emission rate. This adopted retesting provision applies to units that are not equipped with CEMS or PEMS to monitor NOx emissions.



### Section 117.445, Notification, Recordkeeping, andReporting Requirements The commission is removing the requirements in existing §117-445(b)(1) and (2), which specify the notification requirements for units subject to the emission specifications of existing §117-410(a) and (b), respectively. As mentioned elsewhere in the Section by Section Discussion ofthis preamble, existing §117-410(a) is concurrently amended due to the passing ofcompliance dates in existing §117.9030(a) andbecause affected units of existing §117-410(a) are now subject to emission specifications in existing §117-410(b), which is also concurrently moved to revised §117-410(a). In addition, the commission amends §117-445(b) to contain the provisions ofexisting §117-445(b)(2), which detail the notification requirements for units subjectto existing §117-410(b). Adopted §117-445(b) will also include section cross-references to new §117-405(a) and (b) and revised §117-410(a). Under new subsection (b), YITitten notice is required at least 15 days in advance ofthe date ofany CEMS or PEMS performance evaluation conducted under revised §117-440 or stacktest conducted under revised §117-435.Adopted §117-445(e), which specifies the semiannual reporting requirements for 0\vners
or operators ofany gas-fired engines, includes a section cross-reference to new §117-405. Written reports ofexcess emissions andthe air-fuel ratio monitoring system performance mustbe submittedto the executive director.
Adopted §117-445(f) specifies requirements for written or electronic records for owners
or operators ofunits subject to the requirements ofthis division. Adopted subsection (f)(4), which specifies that records ofmonthly hours ofoperation mustbe maintained for units claiming an exemption based on hours peryear ofoperation, includes section cross-references to revised §117-403(b)(2)(D) to reflect adopted changes in §117-403. The commission clarifies that owners or operators ofstationarygas turbines are also required to maintain records ofthe purpose ofunit operation, such as the identification ofthe type ofemergency situation.

The commission revises existing subsection (f)(g) to clarify that records retention of each time a stationary diesel or dual-fuel engine is operatedfor testing and maintenance refers to testing and maintenance ofthe diesel or dual-fuel engine itself. Finally, adopted §117-445(£)(10) updates the existing section cross-reference from existing §117-410(b)(7)(A)(ii) to revised §117-410(a)(7)(A)(ii), to coincide ·with the amendment of existing §117-410(a) andthe re-lettering ofexisting §117-410(b) to §117-410(a).



### Section 117.450, 

### Initial Control Plan Procedures The commission revises existing §117-450, concerning the requirements and procedures for submitting an initial control plan. The commission adopts in §117-450(a), (a)(l), 37(1)(C), and (2) section cross-references to new §117-405(a) and (b) and revised §117-410(a) and deletes references to existing §117-410(b). Adopted §117-450(a) requires the owner or operator ofany unit at a major source ofNOx in the 10-county DFW area that is subjectto new §117-405(a) or (b) or revised §117-410(a) to submit an initial control plan andlists the content requirements for the initial control plans. Sources in the nine-county DFW area already subjectto §117-410 were previously required to submitthe initial control plans. Sources subject to adopted new §117-405 will be required to submitinitial control plans by the applicable compliance date.

The commission revises existing subsection (b) to update the section cross-reference from existing §117.9030(b) to adopted §117.9030. Adopted §117-450(b) specifies that the initial control plan mustbe submittedto the Office ofCompliance and Enforcement, the appropriate regional office, andthe Office ofAir bythe applicable date specified for initial control plans in revised §117.9030.
Finally, the commission deletes existing §117-450(c), which specifies thatfor units located in Dallas, Denton, Collin, andTarrant Counties, subject to existing Subchapter B, Division 2, the owner or operator may elect to submitthe most recent revision ofthe final control plan required by repealed §117.254 in lieu ofthe initial control plan requiredby existing subsection (a). The adopted deletion of §117-450(c) is concurrent with the adopted repeal ofexisting Subchapter B, Division 2 due to the passing of compliance dates and because sources ofNOx previously subject to Subchapter B, Division 2 are now required to comply with more stringent rules in existing Subchapter B, Division 4·

### Section 117.452, 

### Final Control Plan Procedures for ReasonablyAvailable Control Technology The commission adopts new §117-452 requiring the owner or operator ofany unit subjectto adopted new §117-405(a) or (b) at a major source ofNOx to submit a final control reportto show compliance vvith the requirements ofnew §117-405. Adopted new §117-452(a)(1)- (5) specifies the content requirements ofthe report. The final control report must identify which sections are usedto demonstrate compliance. The report must include: the method ofNOx control for each unit; the emissions measuredby testing required in adopted revised §117-435; andthe specific rule citation for any unit with a claimed exemption from the emission specifications ofadopted new §117-405(a)
or (b). In addition, ifa compliance stacktest report or monitor certification report requiredby adopted revised §117-435 is notbeing submitted concurrently -with the final control report, the final control report must include the date the compliance stacktest report or monitor certification report was submitted and whether the compliance stack test report or the monitor certification report was sent to the central office, the regional office, orboth offices.
Adopted new §117-452(b)(1)- (3) specifies that for sources complying with revised §117-423 in addition to the requirements ofnew subsection (a), the owner or operator shall submit: the calculations used to calculate the 30-day average and maximum daily
source cap allowable emission rates; the average daily heat input, variable Hi, specified in revised §117-423(b)(1); the maximum daily heat input, variable Hmi, specified in revised §117-423(b)(2); the method ofmonitoring emissions; the method ofproviding 39substitute emissions data when the NOx monitoring system is not providing valid data; and an explanation ofthe basis ofthevalues ofvariables Hi and Hmi.
Adopted new §117-452(c) specifies the report mustbe submittedto the Office of Compliance and Enforcement, the appropriate regional office, andthe Office ofAir by the applicable date specified for final control plans in revised §117.9030(a). The plan mustbe updated with any emission compliance measurements submittedfor units using a CEMS or PEMS and complying \Vith the source cap rolling 30-day average emission limit, according to the applicable schedule in revised §117.9030(a).



### Section 117.454, Final Control Plan Procedures forAttainmentDemonstration Emission Specifications The commission adopts revisions to existing §117-454 requiring the owner or operator of any unit subject to revised §117-410 at a major source ofNOx to submit a final control report to show compliance with the requirements ofrevised §117-410. Adopted §117-454(a)(4) updates the reference to "relative accuracy test audit" to "monitor certification," consistent\'\rith the concurrently amended revision to §117.435(c). Adopted §117-454(b)(2)(B) corrects a section cross-reference from §117-423(b)(1) to §117-423(b)(2), for sources choosing the source cap compliance option.
Finally, adopted §117-454(c) specifies the report mustbe submittedto the Office of Compliance and Enforcement, the appropriate regional office, andthe Office ofAir by the applicable date specified for final control plans in revised §117.9030.

40Section 117.456, Revision of Final Control Plan The commission adopts revisions to existing §117-456 by adding in paragraph (1) a section cross-reference to new §117-405. The section specifies the conditions under which a revised final control plan maybe submittedbythe mvner or operator, along with any required permit applications. Paragraphs (1)

- (3) specifythat such a plan must adhere to the requirements andthe final compliance dates ofthe division; andthat for
sources complying with new §117-405 or revised §117-410, replacement new units may be included in the control plan. In addition, for sources complying with revised §117-423, any newunit mustbe included in the source cap ifthe unit belongs to an equipment category that is included in the source cap.

SUBCHAPTER C: COMBUSTIONCONTROLAT MAJOR UTILITYELECTRIC GENERATIONSOURCESINOZONENONATTAINMENT AREAS DIVISION2: DALLAS-FORT WORTH OZONENONATTAINMENT AREA UTILITY ELECTRIC GENERATIONSOURCES The commission adopts the repeal ofexisting Subchapter C, Division 2, which has been made obsolete bythe passing ofcompliance dates because sources ofNOx previously subject to this division are now required to complyV\ith more stringent rules in existing Subchapter C, Division 4·

DIVISION4: DALLAS-FORTWORTHEIGHT-HOUR OZONENONATTAINMENT AREA UTILITYELECTRIC GENERATIONSOURCES To address new RACT requirements for sources ofNOx locatedinWise County, the commission adopts revisions in Subchapter C, Division 4, thatwill revise existing rule 41language and requirements associated with any major utility electric generation source ofNOx in the 10-county DFW 2008 eight-hour ozone nonattainment area. The definition ofa major source ofNOx inWise County is in adopted §117.10(29)(C) and includes any stationary source or group ofsources located vvithin a contiguous area and under common control that emits orhas the PTE 100 tpy ofNOx.

Section 117.1303, Exemptions Adopted revisions to §117.1303 clarify exemption criteria ofunits that\'Vill be exempt from specified requirements ofadopted revised Subchapter C, Division 4. The commission adopts removal ofthe existing exemption in §117.1303(a)(1), which applies to any new auxiliary steam boiler or stationary gas turbine placed into service after November 15, 1992. This revision is adoptedto make the utility rules that apply to gas turbines in the DFW area consistent \Nith the major source industrial rules in the DFW
area andto provide a simpler RACT demonstration for the affected utility sources. Affected auxiliary steam boilers and gas turbines will be required to meetthe NOx emission specifications and monitoring andtesting requirements, which are not changed in revised Subchapter C, Division 4. Based on a TCEQ review ofthe 2012 EI and available air permitinformation, the TCEQ expects that all existing auxiliary steam boilers in the nine counties ofthe DFW 1997 eight-hour ozone nonattainment area were constructed priorto the exemption date ofNovember 15, 1992. Therefore, the exemption in §117.1303(a)(1) did not applyto these existing units; and no impact is expected as a result ofthe adopted repeal ofthe exemption. New units will either qualify for the existing exemption in §117.1303(a)(2) based on annual heat input orwill be required to comply with the provisions ofrevised Subchapter C, Division 4. No auxiliary 

### 42steamboilers were identified inWise County.

After reviewing the 2012 EI and available air permit information for all existing gas turbines in the nine counties ofthe DFW 1997 eight-hour ozone nonattainment area, the TCEQ has concluded that all existing gas turbines in the nine counties ofthe DFW area
were placed into service after November 15, 1992. Although the adopted removal ofthe exemption in §117.1303(a)(1) vvill affect these existing units, all ofthe affected turbines already meetthe NOx emission specifications and monitoring requirements ofrevised Subchapter C, Division 4. Existing monitoring provisions require owners or operators of units subject to the NOx emission specifications to install, calibrate, maintain, and operate a NOx emissions monitoring system. Because these units already meetthe NOx emission specifications and monitoring requirements ofSubchapter C, Division 4, the commission does not expect adverse impacts to owners or operators ofaffected units in the nine counties ofthe DFW area as a result ofdeleting the requirement in §117.1303(a)(1). New units V\'ill either qualify for the existing exemption in §117.1303(a)(3)(B) based on unit operating hours orwill be requiredto comply with the provisions ofrevised Subchapter C, Division 4. One utility electric generation source in Wise Countywas identified as an affected source. Based on 2012 EI information, this
source already meets the NOx emission specifications and monitoring requirements of adopted revised Subchapter C, Division 4· The remaining paragraphs will be renumbered accordingly.

The commission revises the operating hours limitfor exemption criteria for stationary gas turbines and stationary internal combustion engines in adopted §117.1303(a)(2)(B) 43from a rolling 12-month average to a rolling 12-monthbasis. The owner or operator of
an affected unit will sum all operating hours for a consecutive 12-month period, and continue doing so on a rolling 12-monthbasis, as opposed to calculating the average of all operating hours during a consecutive 12-month period. This will more accurately reflect the intent ofthe rule andhow an affected unit will demonstrate compliance vvith the operating restriction ofa total of850 hours peryear.



### Section 117.1310, 

### Emission Specifications for Eight-HourAttainmentDemonstration Adopted §117.1310(b) establishes emission specifications ofrelated emissions for units that are subjectto the emission specifications ofsubsection (a) ofthis section. The commission adopts deletion ofexisting §117.1310(b)(1) and (2) due to removing an ammonia emission specification found in existing subsection (b)(2)(B) andthe restructuring ofsubsection (b) thatwill be necessary to conform to current 

### Texas Register formatting requirements. Existing paragraph (2) specifies ammonia emission specifications for units that are subject to the NOx emission specifications of §117.1310(a). Existing paragraph (2)(A) applies onlyto units that inject urea or ammonia into the exhaust stream for NOx control while existing paragraph (2)(B) applies to all otherunits. Existing §117.1310(b)(2)(B) cites a RACT emission specification for ammoniathat is now obsolete, andthe commission contends that an ammonia emission specification is needed only for units that use urea or ammonia for control ofNOx emissions.

In restructuring subsection (b), the commission moves the existing provisions of §117.1310(b)(1)(A) to adopted §117.1310(b)(1)(A) and (B). The existing provisions of 

### 44§117.1310(b)(1)(B) are moved to adopted §117.1310(b)(2). The existing provisions of §117.1310(b)(2)(A) are moved to adopted §117.1310(b)(3)(A) and (B).



### Section 117.1325,

### Alternative Case Specific Specifications Minor stylistic, non-substantive changes are adopted in existing subsection (a). No other changes are adopted.



### Section 117.1335, 

### Initial Demonstration of Compliance The commission adopts §117.1335(d)(4) to specifythe monitoring procedures tobe followed for units complying with a NOx emission specification in lb/MMBtu on a block one-hour average. Existing rule provisions address monitoring procedures for units complying \vith a NOx emission specification in lb/MMBtu on a rolling 30-day average and on a rolling 24-hour average; however, they do not address howunits must comply with a NOx emission specification in lb/MMBtu on a block one-hour average. The commission renumbers existing paragraph (4) to paragraph (5). In addition, the commission adopts a paragraph (6) to specify the monitoring procedures to be followed for units complying with a NOx emission specification in lb/MMBtu on a rolling 168- hour average. Similar to the approach for adopted subsection (d)(4), existing rule provisions do not address howunits must comply vvith a NOx emission specification in lb/MMBtu on a rolling 168-hour average. The adopted revision specifies that the 168- hour average emission rate is calculated using the equation in §117.1310(a)(1)(D). In addition, the commission clarifies thatthe system-·wide heat input weighted average is calculated for each hour, andthe average ofthat hourly data during the 168-hourtest period is used to demonstrate compliance. Finally, the commission renumbers existing 45paragraph (5) to paragraph (7).



### Section 117.1340, 

### Continuous Demonstration of Compliance The commission adopts changes to existing §117.1340, which details the operating, monitoring, andtesting procedures requiredby owners or operators ofunits subject to the emission specifications ofadopted revised §117.1310 in order to demonstrate continuous compliance. Adopted §117.1340(c), concerning ammonia monitoring requirements, updates a reference from existing §117.1310(b)(2)(A) andto §117.1310(b)(3) to coincide \Vith the changes adopted in §117.1310(b). Alternative NOx monitoring provisions for auxiliary steamboilers are provided in existing subsection CD. Adopted revisions to §117.1340(D include rule language to clarify that the alternative monitoring provisions for using a CEMS apply to monitoring only NOx emissions. Adopted revised §117.1340(h)(2) includes additional rule language to clarify that stationary gas turbines that are not ratedless than 30 megawatts orthat are not peaking gas turbines that use steam orwater injection must use either a CEMS or PEMS to comply with the monitoring requirements for stationary gas turbines that are subject to the stationary gas turbine emission specifications of §117.1310.



### Section 117.1345, 

### Notification, Recordkeeping, andReporting Requirements Adopted subsection (d) specifies the semiannual reporting requirements for owners or operators ofunits using a CEMS, PEMS, or steam-to-fuel or water-to-fuel ratio monitoring system under adopted revised §117.1340. Adopted changes to subsection (d)(S) add a PEMS to the list ofmonitoring systems for which the owner or operator must submit a summaryreport and an excess emission report ifthe monitoring systemdowntime for the reporting period is greater than or equal to 5.0% ofthe total unit operating time for the reporting period. Adopted revised subsection (e)(3) also clarifies thatthe mvner or operator ofeach unit subjectto the requirements ofthe division shall maintain records ofthe quantity andtype ofeach fuel burnedin the unit. All other adopted changes to existing §117.1345 are minor stylistic, non-substantive changes.

Section 117.1350, Initial Control Plan Procedures The commission deletes existing subsection (c), which contains references to existing §117.1110 and §117.1154, concurrently adoptedfor repeal, to be consistent with the adopted repeal ofexisting Subchapter C, Division 2.

Section 117.1354, Final Control Plan Procedures forAttainmentDemonstration Emission Specifications Adopted §117.1354 requires the mvner or operator ofutility boilers listed in §117.1300 at
a major source ofNOx to submit a final control plan to show compliance vvith the requirements ofrevised §117.1310. Adopted §117.1354(a)(3) updates the reference to "relative accuracy test audit" to "monitor certification" consistent vvith the language in §117.1335(c). All other changes are minor revisions to update TCEQ office names and references.

SUBCHAPTER G: GENERALMONITORINGAND TESTING REQUIREMENTS DIVISION 1: COMPLIANCE STACK TESTINGANDREPORTREQUIREMENTS Section 117.8000, Stack Testing Requirements The commission adopts §117.8ooo(e) to establish emission testing provisions for boilers 47and process heaters that are used on a temporarybasis and are therefore installed or relocated to an account to be operated for a briefperiod oftime. The owner or operator ofa site that temporarilybrings a unit on-site for short periods oftime will not have sufficient amount oftime to perform the testing requirements ofthe rule. These adopted requirements will be applicable to affected units in all areas covered by Chapter 117. Adopted subsection (e) will provide compliance flexibility to owners or operators that
use temporaryboilers orprocess heaters for less than 6o consecutive calendar days by allovving the ovvner or operator to use previous stack test results conducted on the boiler
orprocess heater or a manufacturer's guarantee ofperformance. The previous testing results or manufacturer's guarantee mustbe for the unit thatwill be newly installed at the account and nottesting results or manufacture's guarantee ofperformance for a similar unit make or model. Forthe purposes ofthis adopted subsection, the term "relocate" or "relocated" means to newly install at an account, as defined in §101.1, Definitions, a boiler or process heater from anywhere outside ofthat account. Adopted subsection (e)(1) specifies that ifprevious testing results are used, testing must have been conducted on the sameboiler or process heater in accordance vvith §117.8ooo(b)- (d). In addition, the ovvner or operator ofthe site temporarily installing the unit shall maintain a record ofthe previous test report as specifiedbythe recordkeeping requirements under Chapter 117 applicable to the site.
Adopted subsection (e)(2) specifies that the owner or operator shall physically remove the unit from the account no laterthan 6o consecutive calendar days after installing the unit at the account. Ifthe owner or operator chooses notto physically remove the unit from the account, the owner or operator shall comply with the testing requirements asspecified in §117.8ooo(b)- (d). Lastly, extensions to the 6o consecutive calendar days limitation ofadopted subsection (e) vvill notbe provided. This is to prevent circumvention ofsatisfying the applicable initial demonstration ofcompliance and testing requirements thatwill otherwise apply to the affected stationaryboiler or stationary process heater subject to Chapter 117. In addition, the commission does not anticipate that these affected units vvill be using a CEMS or PEMS for demonstrating compliance with the requirements ofChapter 117.



### SUBCHAPTER H: ADMINISTRATIVEPROVISIONS DIVISION 1: 

### COMPLIANCE SCHEDULES Section 117.9010, 

### Compliance Schedule for Dallas-Fort Worth Ozone Nonattainment AreaMajor Sources The commission adopts the repeal ofexisting §117.9010, which has been made obsolete bythe passing ofcompliance dates because sources ofNOx previously subject to this section are nowrequiredto comply with more stringent rules in adopted revised §117.9030.



### Section 117.9030, 

### Compliance Schedule for Dallas-Fort Worth Eight-Hour Ozone NonattainmentAreaMajor Sources The commission adopts deletion ofexisting §117.9030(a), concerning compliance schedule for IOP emission specifications. With the passing ofthe compliance date for eight-hour ozone attainment demonstration emission specifications in existing §117.9030(b), these gas-fired engines are now subjectto emission specifications for eight-hour ozone attainment demonstration in existing §117-410(b), which the 49commission adopts as revised §117-410(a).

The commission adopts §117.9030(a), concerning RACT emission specifications, to specify the compliance schedule requirements for units subject to the emission specifications ofadopted new §117-405(a) and (b). Adopted §117.9030(a)(1) requires the
owner or operator ofany stationary source ofNOx in the 10-county DFW 2008 eighthour ozone nonattainment areathat is a major source ofNOx and is subjectto new §117-405(a) or (b) to submitthe initial control plan required by adopted revised §117-450 no laterthan June 1, 2016, andto comply with all other requirements of adopted revised Subchapter B, Division 4 as soon as practicable but no laterthan January 1, 2017. Adopted §117.9030(a)(2) specifies thatthe owner or operator ofany stationary source ofNOx that becomes subjectto the requirements ofadopted revised Subchapter B, Division 4 on or after January 1, 2017, shall comply with the requirements ofSubchapter B, Division 4 as soon as practicable but no later than 6o days after becoming subject. For example, newunits placed into service after January 1, 2017, will be required to comply V\ri.thin 6o days after startup ofthe unit. Existing units prevriously exempt from the rule but no longer qualifyring for that exemption after January 1, 2017, will be requiredto complyV\ri.th the adopted rule no later than 60 days after the unit no longer qualifies for the exemption.
Adopted §117.9030(a)(3) specifies that ifWise County is not designated a nonattainment county as part ofthe DFW 2008 eight-hour ozone nonattainment area,
an owner or operator ofany unit located at a major stationary source ofNOx located in Wise County will notbe required to comply with the applicable requirements ofadopted 50revised Subchapter B, Division 4· The commission 

### vvill publish notice ofa change in nonattainment status for Wise County in the 

### Texas Register. This change is adopted because Texas is currentlyin litigation over the inclusion ofWise Countyin the DFW 2008 eight-hour ozone nonattainment area, as discussed elsewhere in this preamble. As the commission cannot predict the outcome ofthis litigation atthis time, the commission is adopting rules that will ensure that sources within Wise Countywill be properly accountedfor in the DFW 2008 attainment demonstration SIP. In response to comments received, the commission is replacing the proposedlanguage "Wise Countyis
no longer designated nonattainment for the 2008 Eight-Hour Ozone National Ambient Air Quality Standard" in §117.9030(a)(3) with "theWise County nonattainment designation for the 2008 Eight-Hour Ozone National AmbientAir Quality Standard is
no longer legally effective."
Adopted revisions to existing §117.9030(b), concerning eight-hour ozone attainment demonstration emission specifications, include updates to section cross-references. Adopted revised §117.9030(b)(1), (l)(B), (B)(i) and (ii) include deleting the references to existing §117-410(b) and adopting references to §117-410(a). Adopted paragraph (l)(C) deletes the reference to existing §117-410(g) and adds a reference to adopted §117-410(f).



### Section 117-9110, 

### Compliance Schedulefor Dallas-Fort Worth Ozone Nonattainment Area Utility Electric Generation Sources The commission adopts the repeal ofexisting §117.9110, which has been made obsolete by the passing ofcompliance dates because sources ofNOx previously subject to this section are now requiredto comply with more stringent rules in adopted revised 51§117.9130.



### Section 117-9130, 

### Compliance Schedule for Dallas-Fort Worth Eight-Hour Ozone NonattainmentArea Utility Electric Generation Sources Adopted §117.9130 specifies the compliance schedule for owners or operators ofelectric utilities subjectto adopted revised Subchapter C, Division 4. Adopted subsection (a), which specifies the compliance schedule for existing electric utilities subjectto the existing rule, deletes a reference to the existing DFW eight-hour ozone nonattainment
area and adopts the following newlist ofcounties: Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, andTarrant Counties. This change is adoptedto be consistent with the adopted revised definition ofDFW eight-hour ozone nonattainment area in §117.10 andto distinguish between the existing compliance schedule for sources currently subjectto the rule andthose that vvill be newly subjectby the adopted rulemaking.

The commission adopts §117.9130(b) to detail the compliance schedule for auxiliary steam boilers and stationary gas turbines located in Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, andTarrant Counties that\vill be affected bythe adopted amendment to the existing exemption in §117.1303(a)(1). Affected auxiliary steam boilers and stationary gas turbines will be units that were placed into service after November 15, 1992; andthese affected units vvill be requiredto meet the NOx emission specifications and monitoring andtesting requirements, which are not changed in adopted revised Subchapter C, Division 4. Adopted §117.9130(b)(1) requires the ovvner
or operator to submitthe initial control plan requiredbyrevised §117.1350 by no later 52than June 1, 2016. Adopted §117.9130(b)(2) specifies that the o-wner or operator must comply with all other requirements ofadopted revised Subchapter C, Division 4 as soon
as practicable but no laterthan January 1, 2017.

The commission adopts §117.9130(c) to detail the compliance schedule for electric utilities located inWise County subject to the adopted rule. Adopted §117.9130(c)(1) requires the owner or operator to submitthe initial control plan requiredby adopted revised §117.1350 by no laterthan June 1, 2016. Adopted subsection (c)(2) specifies that the owner or operator must complywith all other requirements ofadopted revised Subchapter C, Division 4 as soon as practicablebut no laterthan January 1, 2017. The commission moves existing subsection (b) to adopted subsection (d).
Adopted §117.9130(d) specifies that for electric utilities in Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, or Tarrant Countythatbecome subject to Subchapter C, Division 4 on or after March 1, 2009, andfor electric utilities in Wise County thatbecome subjectto Subchapter C, Division 4 on or after January 1, 2017, the
ovvner or operator must comply as soon as practicable but no later than 6o days after becoming subject.
Finally, adopted §117.9130(e) specifies that ifWise County is not designated a nonattainment county as part ofthe DFW 2008 eight-hour ozone nonattainment area,
an owner or operator ofan electric utilitylocated inWise County\!\ill notbe required to comply with the applicable requirements ofadopted revised Subchapter C, Division 4. The commission will publish notice ofa change in nonattainment status for Wise 53County in the 

### Texas Register. This change is adoptedbecause Texas is currentlyin litigation over the inclusion ofWise County in the DFW 2008 eight-hour ozone nonattainment area, as discussed elsewhere inthis preamble. Asthe commission cannot predict the outcome ofthis litigation atthis time, the commission is adopting rules that will ensure that sources vvithin Wise County will be properly accounted for in the DFW 2008 attainment demonstration SIP. In response to comments received, the commission is replacing the proposedlanguage "Wise County is no longer designated nonattainment for the 2008 Eight-Hour Ozone National AmbientAir Quality Standard" in §117.9130(e) with "the Wise County nonattainment designation for the 2008 EightHour Ozone National Ambient Air Quality Standardis no longer legally effective."

DIVISION2: COMPLIANCEFLEXIBILITY 

### Section 117-9800, 

### Use of Emission Creditsfor Compliance Adopted §117.9800 includes section cross-reference updates tobe consistent with adopted repeal ofSubchapter B, Division 2, and Subchapter C, Division 2. The commission adopts revisions to existing subsections (a)(l)- (5), (b), and (d) to reflect adopted changes in the other subchapters. Adopted subsection (a)(l) will also add a section cross-reference to adopted new §117-405.



### Section 117.9810, 

### Use of Emission Reductions Generatedfrom the Texas Emissions ReductionPlan (TERP) The commission adopts revisions to existing §117.9810, which will remove crossreferences tobe consistent with the adopted repeal ofSubchapter B, Division 2, and Subchapter C, Division 2 and renumber paragraphs accordingly. Adopted revised 54subsection (a)(l) will add a new reference to adopted new §117-405. The commission renumbers existing subsection (a)(6) to adopted subsection (a)(2) to reflect the deletion ofsubsection (a)(2)

- (5).



### Final Regulatory Impact Determination The commission reviewed the adopted rulemaking in light ofthe regulatory impact analysis requirements ofTexas Government Code, §2001.0225, and determinedthatthe adopted rulemaking meets the definition ofa "major environmental rule" as defined in that statute. A "major environmental rule" means a rule, the specific intent ofwhich is to protectthe environment or reduce risks to human health from environmental exposure andthat may adversely affect in a material way the economy, a sector ofthe economy, productivity, competition,jobs, the environment, orthe public health and safety ofthe state or a sector ofthe state. The adopted rulemaking does not, however, meet any ofthe four applicability criteria for requiring a regulatory impact analysis for a major environmental rule, which are listed in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225, applies only to a major environmental rule, the result of which is to: 1) exceed a standard setbyfederal law, unless the rule is specifically requiredby state law; 2) exceed an express requirement ofstate law, unless the rule is specifically requiredbyfederal law; 3) exceed a requirement ofa delegation agreement
or contractbetween the state and an agency or representative ofthe federal government to implement a state and federal program; or 4) adopt a rule solely underthe general powers ofthe agency instead ofunder a specific state law.

The state previously adopted RACT rules for NOx sources in most ofthe DFW area as 55part ofthe SIP for the 1997 eight-hour ozone standard. On March 27, 2008, the EPA revised both the primary and secondary ozone standard (the eight-hour ozone NAAQS) to a level of0.075 ppm with an effective date ofMay 27, 2008 (73 FR 16436). On May 21, 2012, the EPA established initial air quality designations for the 2008 eight-hour
ozone NAAQS. Effective July 20, 2012, the DFW 2008 eight-hour ozone nonattainment area, consisting ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties, was classified as a moderate nonattainment area for the 2008 eight-hour ozone NAAQS. Nonattainment areas classified as moderate and above
are required to meetthe mandates ofthe FCAA under §172(c)(1) and §182(f). FCAA, §172(c)(1) requires thatthe SIP incorporate all reasonably available control measures, including RACT, for sources ofrelevant pollutants. FCAA, §182(f) requires the state to submit a SIP revision that implements RACT for all major sources ofNOx. The adopted rulemaking vvill revise Chapter 117 to implement RACT for all major sources ofNOx in the DFW area as requiredby FCAA, §172(c)(1) and §182(f). The adopted rulemaking will also extend implementation ofRACT to major sources ofNOx located in Wise County, which was classified as unclassifiablejattainmentunderthe 1997 eight-hour ozone standardbutis now classified as nonattainment. The commission adopts rules thatvvill allow the commission to remove the applicability ofRACT requirements to sources in Wise County, ifWise County was to be removed from the DFW 2008 ozone nonattainment area. These specific changes are adoptedbecause Texas is currently in litigation over the inclusion ofWise County inthe DFW 2008 eight-hour ozone nonattainment area, as discussed elsewhere in this preamble. As the commission cannot predictthe outcome ofthis litigation atthis time, the commission adopts rules thatvvill
ensure that sources vvithin Wise County will be properly accounted for in the DFW 2008 

### s6attainment demonstration SIP. The adopted new rules update RACT requirements for the following source categories in Chapter 117: Combustion Control at Major Industrial, Commercial, and Institutional Sources in Ozone NonattainmentAreas, Dallas-Fort Worth Eight-Hour Ozone NonattainmentArea Major Sources; Combustion Control at Major Utility Electric Generation Sources in Ozone NonattainmentAreas, Dallas-Fort Worth Eight-Hour Ozone NonattainmentArea Utility Electric Generation Sources. The adopted rules also modify and update definitions; general monitoring and testing requirements; emission monitoring requirements; and administrative, scheduling, and compliance requirements.

The adopted rulemaking implements requirements of42 USC, §7410, which requires states to adopt a SIP that provides for the implementation, maintenance, and enforcement ofthe NAAQS in each air quality control region ofthe state. While 42 USC, §7410 generally does not require specific programs, methods, or reductions in order to meetthe standard, the SIP must include enforceable emission limitations and other control measures, means or techniques (including economic incentives such as fees, marketable permits, and auctions ofemissions rights), as well as schedules and timetables for compliance as may be necessary or appropriate to meet the applicable requirements ofthis chapter (42 USC, Chapter 85, Air Pollution Prevention and Control). The provisions ofthe FCAA recognize that states are in the bestposition to determine what programs and controls are necessary or appropriate in order to meetthe NAAQS. This flexibility allows states, affected industry, andthe public to collaborate on the best methods for attaining the NAAQS for the specific regions in the state. Even though the FCAA allows states to develop their own programs, this flexibility does not 

### 57relieve a state from developing a program that meets the requirements of42 USC, §7410. States are not free to ignore the requirements of42 USC, §7410 and must develop programs to assure that their contributions to nonattainment areas are reduced so that these areas can bebrought into attainment on schedule. The adopted rulemaking would revise Chapter 117 to implement RACT for all major sources ofNOx in the DFW area as requiredby FCAA, §172(c)(1) and §182(±).

The requirementto provide a fiscal analysis ofadopted regulations in the Texas Government Code was amendedby Senate Bill (SB) 633 during the 75th Legislature, 1997. The intent ofSB 633 was to require agencies to conduct a regulatory impact analysis ofextraordinary rules. These are identified in the statutorylanguage as major environmental rules that will have a material adverse impact and vvill exceed a requirement ofstate law, federal law, a delegated federal program or are adopted solely underthe general powers ofthe agency. With the understanding that this requirement would seldom apply, the commission provided a cost estimate for SB 633 concluding that "based on an assessment ofrules adoptedbythe agency inthe past, it is not anticipated thatthe bill \!\ill have significant fiscal implications for the agency due to its limited application." The commission also notedthatthe number ofrules thatwould require assessment underthe pro-visions ofthe bill was not large. This conclusion was based, in part, on the criteria set forth inthe bill that exempted adopted rules from the full analysis unless the rule was a major environmental rule that exceeded a federal law.

As discussed earlier in this preamble, the FCAA does not always require specific programs, methods, or reductions in order to meetthe NAAQS; thus, states must 58develop programs for each area contributing to nonattainmentto help ensure thatthose
areas will meetthe attainment deadlines. Because ofthe ongoing needto address nonattainment issues andto meetthe requirements of42 USC, §7410, the commission routinely proposes and adopts SIP rules. The legislature is presumedto understandthis federal scheme. Ifeach rule adopted for inclusion in the SIP was consideredto be a major environmental rule that exceeds federal law, then every SIP rule would require the full regulatory impact analysis contemplatedby SB 633. This conclusion is inconsistent \Vith the conclusions reachedby the commission in its cost estimate andby the Legislative Budget Board (LBB) in its fiscal notes. Since the legislature is presumed to understandthe fiscal impacts ofthe bills it passes andthat presumption is based on information providedby state agencies andthe LBB, the commission believes that the intent ofSB 633 was onlyto require the full regulatory impact analysis for rules that are extraordinaryin nature. While the SIP rules will have a broad impact, the impact is no greater than is necessary or appropriate to meet the requirements ofthe FCAA. For these reasons, rules adoptedfor inclusion in the SIP fall underthe exception in Texas Government Code, §2001.0225(a), because they are requiredbyfederal law.

The commission has consistently applied this construction to its rules since this statute
was enacted in 1997. Since thattime, the legislature has revised the Texas Government Code butleft this provision substantiallyunamended. Itis presumedthat "when an agency interpretation is in effect atthe time the legislature amends the laws without making substantial change inthe statute, the legislature is deemed to have acceptedthe agency's interpretation." 

### Central Power & 

### Light Co. 

### v. Sharp, 919 S.W.2d 485, 489 (Tex. App. Austin 1995); 

### writdenied withper curiam opinion respecting another issue, 59960 S.W.2d 617 (Tex. 1997); 

### Bullock v. Marathon Oil Co., 798 S.W.2d 353, 357 (Tex. App. Austin 1990, 

### no writ); CfHumble Oil&

### Refining Co. v. Calvert, 414 S.W.2d 172 (Tex. 1967); 

### Dudney v. State Farm Mut. AutoIns. Co., 9 S.W.3d 884, 893 (Tex. App. Austin 2000); 

### Southwestern Life Ins. Co. v. Montemayor, 24 S.W.3d 581 (Tex. App. Austin 2000, pet. denied); and 

### Coastal Indust. WaterAuth. v. Trinity Portland Cement Div., 563 S.W.2d 916 (Tex. 1978).

The commission's interpretation ofthe regulatory impact analysis requirements is also supportedby a change made to the Texas Administrative ProcedureAct (APA) by the legislature in 1999. In an attemptto limit the number ofrule challenges based upon APA requirements, the legislature clarified that state agencies are required to meetthese sections ofthe APA against the standard of "substantial compliance." The legislature specifically identified Texas Government Code, §2001.0225, as falling under this standard. The commission has substantially complied with the requirements ofTexas Government Code, §2001.0225.

The specific intent ofthe adopted rulemaking is to protectthe environment and reduce the risks to human healthby requiring control measures for NOx emission sources that have been determinedbythe commission tobe RACT for the DFW area. These revisions vdll result in NOx emission reductions in the DFW 2008 eight-hour ozone nonattainment area, which may contribute to the timely attainment ofthe 2008 eighthour ozone NAAQS and reduce public exposure to NOx. The adopted rulemaking does not exceed a standard setbyfederal law or exceed an express requirement ofstate law. No contract or delegation agreement covers the topic that is the subject ofthis adopted 6orulemaking. Therefore, this adopted rulemaking is not subject to the regulatory analysis provisions ofTexas Government Code, §2001.0225(b), because although the adopted rulemaking meets the definition ofa "major environmental rule," it does not meet any of the four applicability criteria for a major environmental rule.

The commission invitedpublic comment regarding the draft regulatory impact analysis determination during the public comment period. No comments were received regarding the draft regulatory impact analysis determination.
Takings ImpactAssessment The commission evaluatedthe adopted rulemaking and performed an assessment of whether Texas Government Code, Chapter 2007, is applicable. The specific purpose of the adopted rulemaking is to implement RACT for all NOx emission sources in the 2008 eight-hour ozone DFW nonattainment area, as requiredby FCAA, §172(c)(1) and §182(£). Texas Government Code, §2007.003(b)(4), provides that Texas Government Code, Chapter 2007 does not apply to this adopted rulemaking because it is an action reasonablytaken to fulfill an obligation mandatedbyfederal law.

In addition, the commission's assessment indicates that Texas Government Code, Chapter 2007 does not apply to these adopted rules because this is an action that is taken in response to a real and substantial threatto public health and safety; that is designedto significantly advance the health and safety purpose; and that does not impose a greaterburden than is necessary to achieve the health and safety purpose. Thus, this action is exemptunderTexas Government Code, §2007.003(b)(13). The 61adopted rules fulfill the FCAA requirement to implement RACT in nonattainment areas. These revisions vvill result in NOx emission reductions in ozone nonattainment areas that may contribute to the timely attainment ofthe 2008 eight-hour ozone NAAQS and reduce public exposure to NOx. Consequently, the adopted rulemaking meets the exemption criteria in Texas Government Code, §2007.003(b)(4) and (13). For these reasons, Texas Government Code, Chapter 2007 does not apply to this adopted rulemaking.
Consistencywith the Coastal Management Program The commission reviewed the adopted rulemaking andfound the adoption is a rulemaking identified in the Coastal CoordinationAct Implementation Rules, 31 TAC §sos.n(b)(2), relating to rules subject to the Texas Coastal Management Program · (CMP), andvvill, therefore, require that goals and policies ofthe CMP be considered during the rulemaking process.

The commission reviewed this rulemaking for consistency\vith the CMP goals and policies in accordance \vith the regulations ofthe Coastal CoordinationAdvisory Committee and determinedthat the rulemaking vvill not affect any coastal natural
resource areas because the rules only affect counties outside the CMP area and is, therefore, consistent mth CMP goals and policies.

The commission invited public comment regarding the consistency vvith the CMP during the public comment period. The commission received no comments onthe CMP.



### 62

### Effect on Sites Subjectto the Federal Operating Permits Program Chapter 117 is an applicable requirement under 30 TAC Chapter 122, Federal Operating Permits Program. Owners or operators subject to the federal operating permit program must, consistentwith the revision process in Chapter 122, upon the effective date ofthe rulemaking, revise their operating permit to include the new Chapter 117 requirements.



### Public Comment The commission held two publichearings on the proposal: one inArlington on January 15, 2015, and a second hearing inAustin onJanuary 22, 2015. The commentperiod closed on February 11, 2015. The commission received v\Tritten comments regarding the Chapter 117 NOx RACT rulemaking from Dal-Tile, the EPA, Luminant, Solar Turbines Incorporated (Solar), Texas Pipeline Association (TPA), and one individual.


### Response to Comments Comment Dal-Tile requestedthat the TCEQ remove ceramic tile kilns as a specified named source in §117-440(c)(1)(F). Dal-Tile commentedthat monitoring exhaust NOx in orderto demonstrate ongoing compliance vvith NOx standards wouldbe more accurately and properly demonstrated with periodic stack testing instead ofwith the existing requirementto use either a CEMS or a PEMS. Dal-Tile commenteditwas the only company operating ceramic tile kilns in the DFW area and due to naturally occurring trace elements in the raw materials usedto produce ceramictile, the nature ofthe exhaust from the ceramic kilns resulted in aggressive corrosion ofthe CEMS units. This also resulted in a very high degree ofmaintenance and repairs, coupled with significantdovvntime ofthe CEMS units, which in turn affected the accuracy and reliability ofthe CEMS units. Dal-Tile further commentedthe data from the CEMS units could notbe considered high quality due to the amount ofdowntime andfrequency ofcalibration adjustments. Dal-Tile commentedthese issues were ongoing for all ofthe CEMS units
on the kilns. The requirement to use a CEMS or a PEMS on ceramic kilns did not provide any publicbenefit, enhance protection ofthe environment, orprovide efficient and equitable administration ofthe NOx emission standard. Dal-Tile also commented thattheir kilns metthe definition ofa Low-Mass Emission (LME) unit in 40 CFR Part 75 and, therefore, met the qualifications for using the LME methodology in lieu ofusing
a CEMS, as allowed by the EPA in 40 CFR Part 75·


### Response The commission solicited commentinthe proposedrulemaking ((39 TexReg 10344) 

### December 26,2014, 

### issue ofthe 

### Texas Register) onthe issue ofcontinuous NOx monitoringfor ceramickilns, includingthepossibility of alternatives such as periodictesting. The commission adoptedthe continuous NOx monitoring requirementfor ceramickilns inthe DFW area in 2007 

### due to the potentialvariabilityin emissions from ceramickilns. The NOx monitoringrequirements existto ensure that actual measured data from monitoringfor major sources ofNOx canbe usedfor comparisonto and compliancewiththe applicable NOx emission limit. Based onthe information providedbythe commenter, the commission acknowledges that sometechnical challenges could existfor the use ofCEMS atthe currentlocation wherethe commenterhas installedthe CEMS, i.e.,

### upstream ofthe scrubber. However, the commission expects that relocating the CEMS downstream ofthe scrubberwouldhave less potential problems for the CEMS. Additionally, the current rule allows for the use ofa PEMS in lieu ofa CEMS. The commenterhas notprovided sufficientjustificationfor whyrelocatingthe CEMS or installing a PEMS are notfeasible alternatives for the commenter's ceramickilns. Neitherhas the commenterprovided sufficientjustificationfor whythe continuous NOx monitoringis not neededto assure compliance withthe rule. Therefore, the commission has
no basis to consider replacingthe continuous NOx monitoringrequirement using a CEMS or PEMS with an alternative method such as periodictesting. No changehasbeen made to the rule in response to this comment.

Comment Dal-Tile also commentedit had no control over the required test methods for determining fuel calorific value, as part ofthe stacktesting requirements of §117.8ooo(c)(6), that may be usedbythe fuel supplier. Therefore, Dal-Tile requested the TCEQ revise the rule language to allow calorific values providedby natural gas suppliers tobe fully compliant with the rules.


### Response Regarding changes to required methods for determiningfuel calorific value, the commission declines to make the change. The commission did notpropose changes to §117.8ooo(c)(6), andthe suggested change is outsidethe scope ofthis rule making. Furthermore, the existing rule 6s

### provision applies to the NOx source owner or operator andnotto the fuel supplier. The owner or operatorhastheflexibility to have a separate analysis performedto determine the fuel calorificvalue accordingto the specified methods in the rule. The existingprovision also allows the source
owner or operatorto request an alternate method as approvedbythe TCEQ executive director andthe EPA. The commission makes no changes in response to this comment.

Comment The EPA commentedthat previous NOx control requirements for natural gas-fired compressor engines in the DFW nine-county area and in EastTexas counties relied on NSCR, catalytic convertors. The EPA commentedthatthese catalytic convertors typically require periodic changes ofcatalysts to maintain NOx control levels. The EPA questioned whether Texas performed anyfollow-up on the affected sources to confirm that proper maintenance occurred to ensure NOx controls still metthe applicable NOx requirements.


### Response To date, while the TCEQhas notinitiated a targeted review ofaffected
sources to confirm whetherproper maintenance is occurringto ensure that NOx controls still meetthe NOx control requirements, like the EPA, the TCEQ conducts investigation activities ofaffected sources, where the required maintenance wouldbe one ofthe issues thatis reviewed, and determines ifan enforcement action is warranted. Source owners or 

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### operators ofaffectedunits subjectto the DFWindustrial rules are required to conducttesting everytwo years orwithin 15,000 

### hours ofengine operation after theprevious emissiontest andperform quarterly emission checks to ensure continued compliancewiththe NOx emission specifications. Affected source owners and operators are also required to reportin writingto theTCEQ executive director on a semiannualbasis any
excess emissions andthe air-fuel ratio monitoring systemperformance. This includes the quarterly emission checks; thebiennial emissiontesting requiredfor demonstration ofemissions compliance; and the specific identification ofeach period ofexcess emissions that occurs during startups, shutdowns, and malfunctions ofthe engine or emission control system, the nature and cause ofany malfunction (ifknown), andthe corrective action taken orpreventative measures adopted. Owners and operators are also required to maintain records on-site for a period ofat leastfive years.

Source owners or operators ofaffectedunits subjectto the EastTexas combustion rules in Subchapter E, Division 4 are required to conduct testing everytwo years orwithin 15,000 

### hours ofengine operation after the previous emissiontest andperform quarterly emission checks to ensure continued compliance withthe NOx emission specifications. Owners and operators are also requiredto maintain records on-site for a period ofat leastfive years. These records also include information relatingto catalytic converter, air-fuel ratio controller, or other emissions-related control

### system maintenance, includingthe date and nature ofcorrective actions taken. The commission considers the current quarterly emissions checks, periodictesting, recordkeeping, andreportingrequirementsfor engines subjectto the Chapter 117 

### requirementstobe sufficientto ensure proper operation and maintenance ofcatalyst controls. No changes are made in response to this comment.

Comment The EPA expressed support ofthe commission clearly identifying the sections that pertain to control ofammonia and CO emissions, which are not ozone precursors, and
are therefore not necessary components ofthe Texas ozone SIP and are not intendedfor inclusion into the EPA-approved Texas SIP. The EPA also expressed support ofthe commission's inclusion ofmajor sources ofNOx located inWise County to become subjectto the requirements ofChapter 117.


### Response The commission appreciates the EPA's support ofthe NOx RACT rulemaking. No changes are made in response to this comment.

Comment The EPA commentedthat it cannot approve the proposed compliance schedule, which states that upon publishing notice in the 

### Texas Registerthat Wise County is no longer designated nonattainment for the 2008 eight-hour ozone NAAQS, the owner or operator ofa unit inWise County is not requiredto complywith the requirements of 

### 68Subchapter B, Division 4. The EPA indicated it cannot approve this provision because it does not contain "a replicable procedure" andto accomplish changing the applicability for sources in Wise County, the state would need to undergo rulemaking and submit a subsequent SIP revision.


### Response The commission disagrees that a replicable procedure is necessaryto change the applicability ofRACT rules toWise Countyinthe eventthe nonattainment designationfor Wise Countyis no longer legallyeffective. If the nonattainment designation is no longerlegallyeffective, then there is
no underlying legalbasis or supportfor the RACT requirementto applyto Wise County. The inclusion ofWise Countyin the DFWnonattainment area is currentlyin litigation, awaiting a decision from the D.C. Circuit. A final decision from the courtthatvacates the nonattainment designation for Wise Countywould meanthatthe EPAwouldno longerhave the authority to require or enforce RACT requirements in an areathat is notlegally designated nonattainment.
Onlyin the absence ofa legallyvalid nonattainment designation wouldthe commissionbe able to actunderthis rule provision and such action would merelyprovide notice thatWise Countywould no longerbe legallyrequired to complywithprovisions that are no longerlegallyvalid. Further action from the EPAwould notbe requiredifa final court decision vacates the nonattainment designation ofWise County; therefore, no FCAA, §no(l) 

### 69

### demonstration couldbe required to remove a requirementthat would no longerbelegallyrequired. Furthermore, the 2018 future-year attainment demonstration modeling docun1ented inthe 2015 DFWAttainment Demonstration SIP (2013-015-SIP-NR) proposalbeing adopted concurrentlywith this rulemaking does not include NOx reductions from any ofthe RACT rulesproposedfor Wise County. Since no emissions reductions from this rulemaking were included inthe 2018 future case modelingforWise County, cessation ofthe compliance obligations for NOx
sources inWise Countywould not affect the attainment demonstration modeling.



### To ensure thatthe rule language clearlyestablishes this standard, the commission is replacingthe proposedlanguage "Wise Countyis no longer designated nonattainmentfor the 2008 Eight-Hour Ozone National AmbientAir Quality Standard" in §117.9030(a)(3) and §117.9130(e) with "theWise Countynonattainment designation for the 2008 Eight-Hour Ozone NationalAmbientAir Quality Standardis no longerlegally effective."

Comment Luminant expressed support ofthe addition of §117.1335(d)(6), which specifies the requirements for utility sources to comply with the NOx emission specification in lb/MMBtu on a rolling 168-hour average. Although Luminant disagreed thatthe proposed clarification is the best interpretation ofthe rules, Luminantfavored the proposed changes that would provide regulatory consistency and clarification regarding 70the specific requirements ofthe appropriate calculation methodology.


### Response The commission appreciates Luminant's support ofthe NOx RACT rulemaking. No changes are made in response to this comment.

Comment Solar andthe TP A suggested thatthe commission maintain the 4,500 hp level as the threshold for units subject to the NOx standards and adopt emission levels in 40 CFR Part 60, Subpart KKKK, the current New Source Performance Standard (NSPS) for industrial combustion turbines, for modified and reconstructed industrial turbines. Solar andthe TP A commentedthatthe proposed emission values are stricterthan 40 CFR Part 6o, Subpart KKKK levels for modified and reconstructed units, and 40 CFR Part 6o, Subpart KKKK contains emission standards for modified and reconstructed units were set at emission levels existing units were capable ofmeeting. For modified and reconstructed units with a heat input less than or equal to 

### so MMBtujhr, 40 CFR Part 6o, Subpart KKKK contains an emission standard of 150 ppm. The proposed RACT requirements set a NOx limit of 122 ppm for similarly sized industrial turbines, i.e., turbines ratedless than 4,500 hp. For two affected units in Wise County, Solar commented that a dry low-NOx retrofit is available but at significant capital cost. The other two affected units inWise County will require uprating to a higher power rating and retrofitting with drylow-NOx technology; this vdll impose significant capital costs. Forthese two units, Solar commentedthe results ofthe uprate and retrofit will potentially require corresponding compressor or other equipment upgrading, 71replacement, or modification; maytrigger additional new source reviewpermitting and/or Federal Energy Regulatory Commission permitting issues; and may result in the site running at a lower, less efficient load.

The TPA and Solar also disagreed with the commission's analysis that no capital costs due to retrofits or combustion modifications were expected for industrial gas-fired turbines inWise County to meetthe proposed NOx emission specifications. Solar and the TPA estimatedthe compliance cost to be as high as $2 million to $4 million for each ofthe four affected Solar industrial turbines to comply with the RACT rulemaking. One TPA member determinedthattwo industrial gas-fired turbines from its fleet would require retrofit technology estimatedto cost between $1.5 million to $4 million per turbine. The TPA member estimatedthe cost perton for emissions reductions to be $38,800. The TPA contendedthis would approach a complete source replacement, contraryto RACT requirements. Solar contendedthat a source-specific RACT cost estimate is imperative to assess the cost-effectiveness ofthe proposed RACT rulemaking
on each affected unit inWise County. Similarly, the TPA commentedthat consideration
on a case-by-case basis ofthe specific technological and economic circumstances ofan individual unit is the best way to ensure emission limits are complied vvith while accounting for exceptional circumstances that may arise in particular cases. The TPA endorsed and fully incorporated Solar's comments.


### Response While the commission may consider Federalrules such as 40 CFRPart 6o, Subpart KKKKwhen determining NOx RACT controllevels, RACT is not 

### 72

### definedbyrules such as the NSPS. The referenced NSPS rules are national rules, whereas the NOx RACT rules thatthe commission is adoptingfor the DFW 2008 

### eight-hour ozone nonattainment area are specificto the facilities inthat area. Furthermore, RACT requirements canbe, and are in
some circumstances, more stringentthan NSPS or National Emission Standards for HazardousAir Pollutants rules. The commission declines to make the suggested change to create an exemptionthresholdbased on unit size. However, based on supplemental data andinformationprovidedby, and comments received from, owners or operators ofthese units inWise County, the commissionhas determinedthat some ofthe affectedturbines inWise Countyinthe proposedmid-size category, 4,500 

### hp and greaterbut less than 10,000

### hp, maynotbe able to meetthe proposed 0.20 

### lb/MMBtu NOx emission specificationwithout making significant modifications or retrofits at substantial costs. The commission determined atproposalthat these costs did not represent RACT for these turbines inWise County. The commission's proposed emission standards werebased on existing emissions datafor the units, butthe commission's assessment ofthe ongoing emissions performancebased onthis datafor the midsize category ofturbines mayhavebeentoo conservative. This resultedinthe emissions standardbeinglowerthan whatwouldbe consistentwith the commission's determination ofRACT for industrial turbines inWise County. Furthermore, additional informationwas providedbytheTP A, and stack test datawas providedby an affected source owner or operatorfor specific units identifiedin Wise County, which supplemented and clarifiedthe 2012 

### 73

### EI data, upon which the commissionproposedthe NOx RACT standards for industrial turbines inWise County. The additional information and data indicatedunitperformancevariability amongthe various turbine model ratings and showedtest results as high as 0.50 

### lb/MMBtu.
Therefore, the commissionis removingthe unit size categoryfor units with
a hp rating ofless than 4,500 

### hp andthe unit size categoryfor units with a hp rating of4,500 

### hp orgreaterbutless than 10,000

### hp. The commission is replacingthese two unit size categories with a unit size categoryfor units with a hp rating ofless than 10,000

### hp. Furthermore, the commission adopts a NOx emission limit of0.55 

### lb/MMBtufor turbines ratedless than 10,000

### hp. Based onthe supplemental informationprovidedby source
owners or operators ofaffectedunits and consideringthe variation intest datafor some units, the commission determines that 0.55 

### lb/MMBtufor units ratedless than 10,000

### hp is an appropriate RACT control level considering currentperformance levels ofexistingunits inWise County. While this control level is numericallythe same as the current NSPS rule for modified and reconstructedindustrialgas turbines with a heatinput less than or equalto 50 

### MMBtujhr, the commission makes dearthat 0.55 

### lb/MMBtu is the appropriate RACT level ofcontrol specificallyfor the units ratedless than 10,000

### hp identifiedinWise Countyconsideringthe specific factors associatedwith those units. This controllevel is also consistentwith the commission's determination ofRACT for industrial turbines inWise Countymade atproposal. Furthermore, based on unit specific information, 74

### the commission expects that no NOx controltechnologyretrofits will be necessaryto complywith the RACT rule requirements for any ofthe affectedindustrial combustion turbines inWise County. Therefore, the commission expects no fiscal impacts associatedwith controls for units in Wise Countyto complywiththe adopted RACT emission standards. Based
onthe revised NOx emission specifications, no affected sources are anticipatedto undergo retrofits ofanykind in order to meetthe emission limits for industrial gas-firedturbines inWise County. Due to public comment, the commissionrevises the unitpower ratingthreshold of4,500 hp in proposed §117-405(b)(3)(A) to 10,000hp. The commission also
removes proposed §117.405 (b)(3)(B) andre-letters proposed subsection (b)(3)(C) to subsection (b)(3)(B).

Comment Solar andthe TPA opposedthe January 1, 2017, compliance deadline and suggested a phased-in compliance schedule to allow industrythe time to develop and implement technology upgrades necessaryto comply with proposed RACT standards.


### Response An 

### alternative compliance schedule, such as a phased-in compliance schedule suggestedbythe commenter, is unnecessary atthis time, especiallygiventhatthe affectedWise Countyturbines are not expectedto require retrofits. Furthermore, the EPA's implementationrule for the 2008 eight-hour ozone NAAQS specifies the January 1, 2017, date as the 75

### compliance deadline for implementation ofRACT requirements. The commission retains inthe rule the compliance deadline ofJanuary 1, 2017, for affectedunits. No changes are made in response to this comment.

Comment The TPA disagreed with the commission's analysis that 0.50 g/hp-hr represents RACT for gas-fired rich-burn engines. One TPA member determinedthat six gas-fired richburn engines from its fleet, already controlledby catalyst, could not meetthe proposed NOx level even with additional catalyst. For a particular 1,680 hp engine, an emission control system conversion kit would cost 

### $go,ooo for the engine to meet 

### o.so g/hp-hr. The member estimated $540,000 in total costs for the six engines. The memberfurther estimatedthe cost per ton ofNOx reduced for this one engine to be $11,100. The TPA, therefore, requested the commission establish 1.0 g/hp-hr as NOx RACT for Waukesha engmes.


### Response The commission disagrees that an emissionlimit of0.50 gfhp-hris not representative ofRACT for gas-firedrich-burn engines. The commission estimatedthe total costsfor NSCR catalyst retrofits for gas-firedrich-burn engines inWise Countybased on some rich-burn engines needing entire catalyst system retrofits and some engines already equippedwith catalyst systems onlyneeding additional catalyst elements. The $30/hp estimate usedbythe commissionfor capital costs for new NSCR systems ((39 TexReg 10351) December 26,2014, issue ofthe 

### TexasRegister) is an overall

### estimate, and capital costs for an individual engine maybe higherthan this estimate. The $90,000 capital cost estimateprovidedbythe TPAwould equateto approximately $54/hp.While higherthan the commission's estimate, the commission still considers the TPA's cost estimate for NSCR
on rich-burn engines tobe economicallyfeasible. The TPA's estimated costeffectiveness of$11,100 perton appears tobe based on onlyfirst-year capital costs andis not annualized. Capital costs associated with control requirements are typically annualized over a period ofyears when calculating cost-effectiveness on a dollar-per-tonbasis. Calculating costeffectivenessbased on thefirst-year capital costs and a single year of emission reductions inflates the dollar-per-ton estimate. The costeffectiveness estimate usedbythe commission in the RACT andfiscal analyses for this rulemakingincluded annual operating and maintenance costs and annualized capital costs overthe first five years the rules are in effect. The first-year cost-effectiveness estimatebythe TPA cannotbe comparedto the commission's cost-effectiveness estimateswithoutbeing convertedto the samebasis.
Furthermore, theTPA's cost-per-ton estimate of$11,100 is alsobased on a NOxreductionfrom 1.0 g/hp-hrto 0.50 g/hp-hr, when it shouldbe from 2.0 g/hp-hrto 0.50 gfhp-hr. Site-specific data ofannual NOx emissions and operatinghours reportedto the 2012 EI indicatethe 1,680 hp engine operated at a performance level of2.0 gjhp-hr. Basedon the TPA's cost information ofthe conversionkit annualized overfive years, the 77commission estimatesthe costperton for the 1,680 hp engine tobe $1,027. This figure includes the $90,000 capital costfor the conversionkit, a capital cost of$2,500 for one totalizingfuel flow meter, annual maintenance costs of$3,000 for catalyst washing and 02 or NOx sensor replacement, annual average costs of$2,525 for compliancetesting, and an emission reduction ofapproximately 23.4 tpy. Annualizingthis overfive years, the commission notes thatthis estimate of$1,027perton for NSCR systems using the TPAcapital costs is lowerthan the overall average of $1,563 perton the commission citedfor all affected units, including richburn engines, intheproposedrulemaking ((39 TexReg 10350) December 26,2014, issue ofthe 

### TexasRegister). The commission maintains that the NOx emission specification of0.50 g/hp-hrrepresents RACT for gas-fired rich-burn engines. No changes are made in response to this comment.

Comment The TPA supportedthe source cap option and use ofemission reduction credits as a compliance flexibility mechanism for sources inWise County affectedby the proposed RACT rules. The TPA also supported rule provisions allovving affected source owners and operators to petition the TCEQ executive director for alternative CO and ammonia emission specifications. Regarding gas-fired lean-burn engines inWise County, the TPA expressed support ofthe proposed NOx levels set at a higher level than existing levels for sources inthe DFW nine-county ozone nonattainment area. The TPA stated support ofthe commission's decision to not revise existing RACT rules applicable to oil and gas
sources ofNOx in the DFW nine-county ozone nonattainment area.

### Response The commission appreciates the TPA's support ofthe NOx RACT rulemaking. No changes are made in response to these comments.

Comment One individual commentedthe public is doomed to suffer ifits air is left to the TCEQ since those making moneyfrom dirty air seem to have bought everyone with powerto do something to clean up the air, and no TCEQ board member was present atthe public hearing.


### Response The purpose ofthis Chapter 117 

### rulemakingis to meet FCAANOx RACT requirements for the DFW area. This comment is outsidethe scope ofthis rulemaking. Additional discussion in response to this comment is provided inthe 2015 DFWAttainment Demonstration SIP Revision (Non-Rule Project No. 2013-015-SIP-NR) being adopted concurrentwith this rulemaking. No changes are made to this rulemakingin response to this comment.

79