Bryan W. Shaw, Ph.D., P.E., Chairman 

Toby Baker, Commissioner 

Richard A. Hyde, P.E., Executive Director 15 JUL 13 PH 5: 24 

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY 

Protecting Texas by Reducing and Preventing Pollution 

July 10,2015 

Ron Curry 

Regional Administrator 

U.S. Environmental Protection Agency -:- Region 6 

1445 Ross Avenue 

Dallas, Texas 75202-2733 

Dear Mr. Curry: 

Docket Nos. 2014-1262-SIP 

2014-0501-RUL 

2014-0707-RUL 

Project Nos. 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 of ozone air pollution for the 

Dallas-Fort Worth (DFW) 2008 Eight-Hour Ozone Nonattainment Area. 

The Commission adopted the repeal of §115-417; new §115.410 and §115-411; and 

amendments to §§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 of Air 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 of Air Pollution from Nitrogen Oxides; and corresponding revisions to the 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, correspond to portions of the existing rule previously excluded 

from the EPA-approved Texas SIP, are not being submitted to EPA as revisions to the SIP. 

Similarly, adopted new §117-405(d) will not be submitted to the EPA as a SIP revision. 

The Commission also adopted the DFW 2008 Eight-Hour Ozone Standard Attainment 

Demonstration (AD) SIP Revision. The D FW 2008 Eight-Hour Ozone Standard AD 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 required by 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 part of 

the SIP for the 1997 eight-hour ozone stan9,ard. The rulemakings satisfy RACT requirements 

for Wise County and for any sources identified in the DFW area that are not already subject to 

the existing rules. 

This SIP revision includes the work completed to date to demonstrate that the DFW area will 

attain the 2008 eight-hour ozone NAAQS by 2018. The SIP revision also commits to 

development of a 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 of evidence analysis, a reasonably available 

control measures (RACM) analysis, and a Motor Vehicle Emissions Budget (MVEB). 

Because no additional analysis was needed to complete the contingency plan for attainment, 

Section 4.9, Contingency Plan, was revised to reflect a 2017 attainment year. 

Enclosed are the proposed revisions to the SIP, a public hearing certification, a complete 

record of the public hearings, and the accompanying order. I look forward to your 

expeditious approval of these SIP revisions. 

Sincerely, 

~.._.U~ct.v...r 

~.Shaw, Ph.D., P.E. 

Chairman 

BWS/alb 

Enclosures 

cc: The Honorable Greg Abbott, Governor of Texas 

Mr. John Zerwas, Office of Budget, Planning and Policy, Office of the Governor 

Mr. Richard A. Hyde, P.E., Executive Director, Texas Commission on Environmental 

Quality 
Texas Commission on Environmental Quality 

Public Hearings 

January 15 and 22, 2015 

Concerning Revisions to 30 T AC 

Chapter 117 Control of Air Pollution from 

Nitrogen Compounds 

NOx Eight-Hour Ozone Nonattainment Area 

Project No. 2013-049-117-AI 
INTRODUCTION 

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/Order 
Additional 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, Chief Clerk 

Richard A. Hyde, P.E., Executive Director 

Steve Hagle, P.E., Deputy Director 

Office of Air 

Date: May 15, 2015 

Docket No.: 2014-0707-RUL 

Subject: Commission Approval for Rulemaking Adoption 

Chapter 117, Control of Air 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 Ambient Air Quality Standard (NAAQS), the 

Dallas-Fort Worth (DFW) 2008 eight-hour ozone nonattainment area, consisting of Collin, 

Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties, is 

classified as a moderate nonattainment area vvith a December 31, 2018 attainment 

deadline (77 FR 30088, May 21, 2012). As a result of the D.C. Circuit Court's ruling on 

December 23, 2014, the attainment date for the DFW moderate nonattainment area has 

been changed from 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 attainment year for the DFW moderate nonattainment area has 

changed from 2018 to 2017. However, this change in attainment dates does not impact the 

compliance date of January 2017 for the nitrogen oxides (NOx) Reasonably Available 

Control Technology (RACT) rulemaking. 

Nonattainment areas classified as moderate and above are required to meet the mandates 

of the Federal Clean Air Act (FCAA) under §172(c)(1) and §182(D. FCAA, §172(c)(1) 

requires that the state implementation plan (SIP) incorporate all reasonably available 

control measures, including RACT, for sources of relevant 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 of meeting by the application of 

control technology that 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 in the DFW area as required by FCAA, §172(c)(1) and §182(D. 
Commissioners 

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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 of the SIP for the 1997 eight-hour ozone standard. 

However, Wise County was classified as attainment under the 1997 eight-hour ozone 

standard so the Chapter 117 RACT rules do not currently apply in Wise County. 

This rulemaking \vill implement RACT for major sources of NOx located in newly 

designated Wise County and for major sources of NOx in the other nine counties of the 

DFW 2008 eight-hour ozone nonattainment area that are not addressed by the current 

Chapter 117 rules. Currently, the Texas Commission on Environmental Quality (TCEQ) and 

other concerned parties are challenging whether the EPA's inclusion of Wise County in the 

DFW 2008 eight-hour ozone nonattainment area was la\1\ful. These challenges are 

currently pending in the United States Court of Appeals for the District of Columbia 

Circuit. If the inclusion of Wise 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 submitted to the EPA as a SIP revision. 

Scope of the rule making: 

A.) Summary of what the rulemaking will do: 

The adopted rulemaking will revise Chapter 117 to implement RACT requirements for all 

major sources of NOx in the DFW area. The adopted rulemaking will revoke an exemption 

for utility turbines and auxiliary steam boilers installed after November 15, 1992 in the 

DFW area, which previously relied on permitting to satisfy RACT requirements. The 

changes will rely instead on Chapter 117 rules to satisfy RACT and be consistent with other 

Chapter 117 rules in the DFW area. For owners or operators of boilers and process heaters 

used on a temporary basis, 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 and utility rules for the DFW area that are now obsolete due 

to the passing of compliance dates. Sources that were subject to these older rules are now 

required to comply with more stringent industrial and utility rules for the DFW area. The 

adopted rulemaking will implement only those RACT requirements that staff determines 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 necessary to implement 

RACT. The rulemaking will add compliance dates for the new or revised RACT rules and 

add compliance dates for sources that become 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 of Wise County. 

B.) Scope required by federal 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 of NOx in the DFW area. 
Commissioners 

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May 15,2015 

Re: Docket No. 2014-0707-RUL 

C.) Additional staff recommendations that are not required by federal rule or 

state statute: 

While not specifically required to satisfy FCAA RACT requirements, the adopted 

rulemaking 'vill revoke an exemption for utility turbines 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 exempted under this provision already meet the 

NOx emission specifications and therefore, mll not need to install additional controls. 

Affected facilities in Wise 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 of a 

site that use temporary boilers or process heaters for less than 6o consecutive calendar 

days, by allomng the use of previous stack test results conducted on the unit that mll be 

newly installed or relocated at the account or a manufacturer's guarantee of performance. 

The adopted changes mll be applicable to affected units in all areas covered by Chapter 117. 

Previous testing must conform to existing Chapter 117 stack testing requirements, and the 

owner or operator of the site must maintain at the site a record of the previous test report. 

While also not required to satisfy RACT requirements, the adopted rulemaking vvill revise 

the definition of electric power generating system to clarify the applicability of independent 

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 either the Beaumont-Port Arthur ozone nonattainment 

area or the DFW area mll be subject to the provisions in Subchapter C, Division 3. The 

changes are not intended to expand the definition. 

The adopted rulemaking will repeal Subchapter B, Dhision 2 and Subchapter C, Division 2, 

which have been made obsolete by the passing of compliance dates because sources 

previously subject to these divisions are now required 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 consistent terminology, and update the rule language to 

current Texas Register and TCEQ style and format requirements. 

Statutory authority: 

The follomng provisions authorize the commission to adopt rules necessary to carry out its 

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 necessary 
Commissioners 

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May 15,2015 

Re: Docket No. 2014-0707-RUL 

to carry out its powers and duties under the 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 of the TCAA; THSC, §382.002, Policy and 

Purpose, which establishes the commission's purpose to safeguard the state's air resources, 

consistent with the protection of public health, general welfare, and physical property; 

THSC, §382.011, General Powers and Duties, which authorizes the commission to control 

the quality of the state's air; and THSC, §382.012, State Air 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 of Records, authorizes the 

commission to prescribe requirements for owners or operators of sources to make and 

maintain records of emissions measurements; THSC §382.021, Sampling Methods and 

Procedures, authorizes the commission to prescribe the sampling methods and 

procedures; and THSC §382.051 Permitting Authority of Commission; Rules, authorizes 

the commission to adopt rules as necessary to comply with changes in federal law or 

regulations applicable to permits under THSC Chapter 382. The rule amendment will also 

be adopted under 42 United States Code, §§7401, et seq., which requires states to submit 

SIP revisions that specify the manner in which the NAAQS vvill be achieved and 

maintained within each air quality control region of the state. 

Effect on the: 

A.) Regulated community: 

The adopted rules will be applicable to owners or operators of major stationary sources of 

NOx located in the DFW area. Because this adopted rulemaking ""ill extend 

implementation of RACT to all major sources of NOx located in Wise County, owners or 

operators of any gas-fired engine, gas-fired turbine, or gas-fired process heater located in 

Wise County will be required to comply with the adopted rules. Most major sources of NOx 

in the other nine counties ofthe DFW 2008 eight-hour ozone nonattainment area are 

already subject to Chapter 117 rule requirements that meet or exceed RACT. 

Owners or operators of any wood-fired boilers located in the DFW area will be required to 

comply with the adopted rules; this is to incorporate any new major sources of NOx in the 

other nine counties that were not addressed in previous RACT rulemakings. Only one 

wood-fired boiler, in Kaufman County, has been identified as being affected by the adopted 

rulemaking, and the boiler already has controls meeting the adopted emission specification 

for wood-fired boilers. Owners or operators of any auxiliary steam boiler or gas-fired 

turbine placed into service after November 15, 1992 will be required to comply with the 

adopted rules due to the removal of an 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 not be necessary. 

The rulemaking will require owners or operators of affected sources to comply with the 

emission standards, conduct initial emissions testing or continuous emissions monitoring 
Commissioners 

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 not limited to 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 estimated fiscal amount of $1,456,725 covers the 

capital costs associated with equipment purchase and labor 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 of emissions compliance testing and monitoring and equipment maintenance. 

Combined total capital and total annual costs for all affected units to comply with the 

adopted requirements of this rulemaking are estimated at $2,711,475, with total capital 

outlay estimated to be $881,350 and total annual outlay estimated to 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, and the adopted rulemaking is not expected to have any effect on a 

local economy. 

B.) Public: 

The public benefit anticipated from the changes seen in the adopted rules will be continued 

protection of the environment and public health and safety combined with efficient and 

fair administration of NOx emission standards for the DFW area. It is estimated that the 

adopted rules will reduce the amount ofNOx in the DFW area by 1.17 tons per day. 

C.) Agency programs: 

The rulemaking may increase the workload for Office of Compliance and Enforcement staff 

when inspecting affected facilities to verify compliance \'\i.th any new or re\i.sed Chapter 117 

requirements. 

Stakeholder meetings: 

An Ozone Planning Public Information Meeting was held at the North Central Texas 

Council of Governments in Arlington, Texas on September 5, 2013. 

Public comment: 

The commission held public hearings on the rulemaking in Arlington on January 15, 2015 

and in Austin on January 22, 2015. The hearing in Austin was not officially opened because 

no party indicated 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 of a ceramic kiln of any 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 that the requirement to use a CEMS or PEMS to demonstrate 

ongoing compliance should be removed. Ongoing compliance for ceramic tile kilns 

would be more accurately and properly demonstrated vvith periodic stack testing. 

No changes are made in response to this comment. The existing continuous NOx 

monitoring requirement for ceramic kilns in the DFW area was adopted to 

accommodate the potential variability in emissions from ceramic kilns. The NOx 

monitoring requirements exist to ensure that actual measured data from 

monitoring for major sources of NOx can be used for comparison to and 

compliance with the applicable NOx 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, could present some technical challenges. However, 

the commenter did not provide sufficient technical justification to consider revising 

the rules or why the CEMS could not be relocated or replaced with a PEMS. 

• Dal-Tile also commented that it has no control over the test methods used by the 

supplier to determine fuel calorific value as required by the stack testing 

requirements of §117.8ooo(c)(6). Dal-Tile requested revising §117.8ooo(c)(6) to 

allow calorific values provided by 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 specified methods 

in the rule. The existing provision also allows the source owner or operator to 

request an alternate method as approved by the TCEQ executive director and the 

EPA. 

o The EPA commented that natural gas-fired compressor engines in the DFW ninecounty area and in East Texas counties relied on nonselective catalytic reduction, 

catalytic convertors, which typically require periodic changes of catalyst to maintain 

required NOx control levels. The EPA questioned whether TCEQ performed any 

follow-up on affected sources to confirm that proper maintenance occurred to 

ensure NOx controls still met the applicable NOx requirements. No changes are 

made in response to this comment. While the TCEQ has not initiated a targeted 

review of affected sources to confirm whether proper maintenance is occurring to 

ensure that NOx 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 117 DFW industrial rules and the East Texas 
Commissioners 

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May 15,2015 

Re: Docket No. 2014-0707-RUL 

Combustion rules, in Subchapter E, Division 4, to be sufficient to ensure proper 

operation and maintenance of catalyst controls. 

• The EPA commented that it cannot approve the proposed compliance schedule that 

states that upon publishing notice in the Texas Register that Wise County is no 

longer nonattainment for the 2008 ozone standard, sources in Wise County are not 

required to comply vvith the NOx RACT rules in Wise 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" and to accomplish 

changing the applicability for sources in Wise County, the state would need to 

undergo rulemaking and submit a subsequent SIP revision. In response to this 

comment, the commission is replacing the proposed language "Wise County is no 

longer designated nonattainmentfor the 2008 Eight-Hour Ozone National 

Ambient Air Quality Standard" in §117.9030(a)(3) and in §117-9130(e) with "the 

Wise County nonattainment designation for the 2008 Eight-Hour Ozone National 

Ambient Air Quality Standard is no longer legally effective." 

• Solar and the TP A commented that 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 should be equivalent to the NOx limit of 150 parts per million (ppm). 

This is the NOx limit found in 40 Code of Federal Regulations Part 6o, Subpart 

KKKK, the New Source Performance Standard (NSPS) for modified and 

reconstructed industrial combustion turbines. Solar and the TP A commented that 

the proposed NOx emission limits are more stringent than the NSPS. The proposed 

RACT requirements set a NOx limit of 122 ppm for similarly-sized industrial 

turbines, i.e., turbines rated less than 4,500 horsepower (hp). Solar and the TPA 

disagreed with the commission's determination that no capital costs due to retrofits 

or combustion modifications were expected. Solar and the TPA estimated RACT 

compliance costs to be between $2 million and $4 million for each of the four 

affected Solar turbines. In addition, Solar and the TP A requested the commission 

maintain the 4,500 hp level as the threshold for units subject to the NOx standards, 

thereby creating an exemption threshold based 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 

comments providing detailed technical information from source owners and 

operators in Wise County indicating that some affected units rated at 4,500 hp and 

greater but less than 10,000 hp may not be able to meet the proposed 0.20 pound 

per million British thermal unit (lbjMMBtu) limit without making significant 

modifications or retrofits at substantial costs. Because staff determined that no 

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 

the performance levels of the existing industrial turbines in Wise County. 

Specifically, a category is created for units rated at less than 10,000 hp, replacing 

the proposed category of 4,500 hp and greater but less than 10,000 hp. The 

adopted NOx RACT emission limit for the new unit category is 0.4slbjMMBtu. 
Commissioners 

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May 15,2015 

Re: Docket No. 2014-0707-RUL 

0 Solar and the TPA opposed the RACT compliance deadline of January 1, 2017 and 

suggested a phased-in compliance schedule to allow industry the time to develop 

and implement technology upgrades necessary to comply with 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, 2017 and is unnecessary at this time, especially given that 

the affected Wise County turbines are not expected 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 

determined that 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 of NOx 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 not appear to annualize the cost effectiveness estimate of $11,100. 

Furthermore, the analysis is based on a NOx 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 at a level of 2.0 

gjhp-hr. Using the TPA's cost information for the conversion kit, the commission 

estimates the cost per ton for the engine to be $1,027. This includes annual 

operating and maintenance costs and annualized capital costs. This estimate using 

the TPA's cost data is lower than the overall average of$1,563 per ton the 

commission cited for all affected units in the proposed 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 

Ambient Air Quality Standard is no longer legally effective." 

0 In response to comments from the TP A, units less than 4,500 hp and units equal to 

or greater than 4,500 hp and less than 10,000 hp were combined into one category 

of units less than 10,000 hp with a NOx standard of 0-45lbjMMBtu. Staff retained 

the category of units equal to or greater than 10,000 hp 'vith a standard of 0.15 

lb/MMBtu. 
Commissioners 

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May 15,2015 

Re: Docket No. 2014-0707-RUL 

Potential controversial concerns and legislative interest: 

None 

Does this rulemaking affect any current policies or require development of 

new policies? 

No 

What are the consequences if this rulemaking does not go forward? 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 of a FIP. One alternative is to address the DFW area 

only and not clarify or clean up language that impacts other parts of Texas. 

Key points in the adoption rulemaking schedule: 

Texas Register proposal publication date: December 26, 2014 

Anticipated Texas Register adoption publication date: June 19, 2015 

Anticipated effective date: June 25, 2015 

Six-month Texas Register filing deadline: June 26, 2015 

Agency contacts: 

Javier Galvan, Rule Project Manager, (512) 239-1492, Air Quality Division 

Amy Browning, Staff Attorney, (512) 239-0891 

Sherry Davis, Texas Register Coordinator, (512) 239-2141 

Attachments 

cc: Chief Clerk, 2 copies 

Executive Director's Office 

Marshall Coover 

Pattie Burnett 

Stephen Tatum 

Office of General Counsel 

Javier Galvan 

Sherry Davis 
EVALUATION 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 proposed text as published in the 

December 26, 2014, issue of the Texas Register (39 TexReg 10337) and, therefore, vvill 

not be republished. The commission adopts amendments to §§117-403, 117-410, 

117.9030, and 117.9130; and new §117-405 with changes to the proposed text. 

The adopted new, amended, and repealed sections of Chapter 117 will be submitted to 

the United States Environmental Protection Agency (EPA) as a revision to the state 

implementation plan (SIP), except for: §§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 of the existing rule previously excluded from the EPA-approved Texas SIP and 

will not be submitted with this revision. Similarly, adopted new §117-405(d) will not be 

submitted to the EPA as a SIP revision. 

1 
Background and Summary of the Factual Basis for the Adopted Rules 

General Background 

The 1990 Federal Clean Air Act (FCAA) Amendments (42 United States Code (USC), 

§§7401 et seq.) require the EPA to establish primary National Ambient Air Quality 

Standards (NAAQS) that protect public health and to designate areas as either in 

attainment or nonattainment with the NAAQS or as unclassifiable. States are primarily 

responsible for ensuring attainment and maintenance of the NAAQS once established by 

the EPA. Each state is required to submit a SIP to the EPA that provides for attainment 

and maintenance of the NAAQS. 

On March 27, 2008, the EPA revised both the primary and secondary ozone standard 

(the eight-hour ozone NAAQS) to a level of 0.075 parts per million (ppm) with an 

effective date of May 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-Fort Worth (DFW) 2008 eight-hour ozone nonattainment area, 

consisting of Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, 

Tarrant, and Wise Counties, was classified as a moderate nonattainment area with an 

attainment deadline of December 31, 2018 (77 FR 30088, May 21, 2012). 

On December 23, 2014 the United States Court of Appeals for the District of Columbia 

Circuit (D.C. Circuit Court) ruled on a lawsuit filed by the Natural Resources Defense 

Council, which resulted in vacatur of the EPA's December 31 attainment date for the 

2008 ozone NAAQS. As part of the EPA's Implementation of the 2008 National 

Ambient Air Quality Standards for Ozone: State Implementation Plan Requirements; 

2 
Final Rule, published in the Federal Register on March 6, 2015 (So FR 12264), the EPA 

modified 40 Code of Federal 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, rather than the end of the 2012 calendar year. As a 

result, the attainment date for the DFW moderate nonattainment area has changed from 

December 31, 201S, to July 20, 201S. In addition, because the attainment year ozone 

season is the ozone season immediately preceding a nonattainment area's attainment 

date, the attainment year for the DFW moderate nonattainment area has changed from 

201S to 2017. The change in attainment date will not impact this rulemaking because 

the compliance date for implementing reasonably available control technology (RACT) 

remains January 1, 2017, as required by the 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 

that the SIP incorporate all reasonably available control measures, including RACT, for 

sources of relevant pollutants. FCAA, §1S2(f) requires the state to submit a SIP revision 

that implements RACT for all major sources of nitrogen oxides (NOx). 

The EPA defines RACT as the lowest emission limitation that a particular source is 

capable of meeting by the application of control technology that 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 

3 
RACT requirements for a nonattainment area. The adopted rulemaking will revise 

Chapter 117 to implement RACT for all major sources of NOx in the DFW area as 

required by FCAA, §172(c)(1) and §182(±). The state previously adopted Chapter 117 

RACT rules for sources in the DFW area as part of the SIP submitted by the state on May 

30, 2007, for the 1997 eight-hour ozone standard, and the EPA approved these rules on 

December 8, 2008 (73 FR 73562). However, Wise County was classified as attainment 

under the 1997 eight-hour ozone standard, so the Chapter 117 RACT rules do not 

currently apply in Wise County. The adopted rulemaking will extend implementation of 

RACT to major sources of NOx located in Wise County. These adopted rules will be 

submitted to the EPA as a SIP revision. 

Under the 1997 eight-hour ozone NAAQS, the DFW eight-hour ozone nonattainment 

area consisted of nine counties (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, 

Rockwall, and Tarrant) and was 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 threshold level for sources in an area to prevent 

backsliding (So FR 12264, March 6, 2015). For this reason, the major source threshold 

for the nine counties remains the serious classification potential to emit (PTE) of 50 

tons per year (tpy) of NOx. For Wise County, the major source threshold is the moderate 

classification PTE of 100 tpy of NOx. 

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 

4 
January 1, 2017, as required by the 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: Subchapter A, Definitions, §117.10; Subchapter B, Combustion Control at Major 

Industrial, Commercial, and Institutional Sources in Ozone Nonattainment Areas, 

Division 4, Dallas-Fort Worth Eight-Hour Ozone Nonattainment Area 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 Nonattainment Area 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 and Testing Requirements, Division 1, 

Compliance Stack Testing 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 adopted for repeal by the commission 

associated with this rulemaking include all of Subchapter B, Division 2, Dallas-Fort 

Worth Ozone Nonattainment Area Major Sources and Subchapter C, Division 2, DallasFort Worth Ozone Nonattainment Area Utility Electric Generation Sources. 

The commission also adopts clarifications and minor revisions that will affect some 

5 
sources in other areas covered by Chapter 117, such as changes to definitions and testing 

provisions for compliance flexibility. These changes and other changes are adopted to 

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 of affected units. These adopted 

changes are discussed in detail in the Section by Section Discussion section of this 

preamble. 

SUBCHAPTER B: COMBUSTION CONTROL AT MAJOR INDUSTRIAL, 

COMMERCIAL, AND INSTITUTIONAL SOURCES IN OZONE NONATTAINMENT 

AREAS 

DIVISION 2: DALLAS-FORT WORTH OZONE NONATTAINMENT AREA MAJOR 

SOURCES 

The commission adopts the repeal of existing Subchapter B, Division 2 because 

compliance dates for sources of NOx subject to this division have passed and are now 

considered obsolete. Furthermore, sources previously subject to this division are now 

required to comply with more stringent rules in existing Subchapter B, Division 4. 

DIVISION 4: DALLAS-FORT WORTH EIGHT-HOUR OZONE NONATTAINMENT 

AREA MAJOR 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. For the other nine counties, one new major 

6 
ICI source ofNOx was identified in Kaufman County. Adopted revisions to this division 

vvill require some owners or operators of major ICI sources in Wise or Kaufman 

Counties to reduce NOx emissions from certain stationary sources and source categories 

to satisfy RACT requirements. For Wise County, a major source of NOx is any stationary 

source or group of sources located \Nithin a contiguous area and under common control 

that emits or has the PTE equal to or greater than 100 tpy of NOx. For the remaining 

nine counties, a major source ofNOx is any stationary source or group of sources 

located within a contiguous area and under common control that emits or has the PTE 

equal to or greater than 50 tpy of NOx. In the adopted rulemaking, the stationary source 

type categories with controls in Wise County are process heaters, stationary internal 

combustion gas-fired engines, and stationary gas turbines. In Kaufman County, the 

stationary source type category with controls is wood-fired boilers. Adopted revisions to 

Subchapter B, Division 4 will also extend applicability of existing monitoring, testing, 

recordkeeping, and reporting requirements to the affected sources located in Wise and 

Kaufman Counties. These requirements will be necessary to ensure compliance with the 

adopted emission specifications and to ensure that the 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 of this preamble. 

The commission estimates that this adopted rule will result in a reduction of 1.17 tons 

per day ofNOx from major ICI sources in the DFW area. Although the commission 

estimated this reduction amount from the affected sources, the emissions reductions 

from the control strategies adopted during this rulemaking were not included in the 

7 
attainment 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. In the 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 of emissions specifications in §117-410 to 

demonstrate attainment for the nine counties of the D FW 1997 eight-hour ozone 

nonattainment area. With this adopted rulemaking, the commission fulfills NOx RACT 

requirements for the DFW 2008 eight-hour ozone nonattainment area by implementing 

the adopted requirements for major sources in Wise County and Kaufman County. 

SUBCHAPTER C: COMBUSTION CONTROL AT MAJOR UTILITY ELECTRIC 

GENERATION SOURCES IN OZONE NONATTAINMENT AREAS 

DIVISION 2: DALLAS-FORT WORTH OZONE NONATTAINMENT AREA UTILITY 

ELECTRIC GENERATION SOURCES 

The commission adopts the repeal of existing Subchapter C, Division 2 because 

compliance dates for sources of NOx subject to this division have passed and are now 

considered obsolete. Furthermore, sources previously subject to this division are now 

required to comply vvith more stringent rules in existing Subchapter C, Division 4· 

DIVISION 4: DALLAS-FORT WORTH EIGHT-HOUR OZONE NONATTAINMENT 

AREA UTILITY ELECTRIC GENERATION SOURCES 

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 that were adopted as emissions specifications 

8 
for attainment demonstration in the previous RACT rulemaking, as adopted in the May 

30, 2007, DFW SIP revision. The commission adopts the repeal of an existing 

exemption for auxiliary steam boilers and stationary gas 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 consistent with 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 

Section by Section Discussion section of this preamble. With this adopted rulemaking, 

the commission implements and fulfills NOx RACT requirements for major sources in 

Wise County. 

This adopted rulemaking v.rill include Wise County as part of the DFW 2008 eight-hour 

ozone nonattainment area since it was designated as nonattainment by the 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 currently challenging 

whether the EPA's inclusion of Wise County in 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 predict the outcome of this litigation at this 

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 County be removed from the DFW 2008 eight-hour ozone nonattainment area 

after the adoption of these rules, the adopted rules will allow the commission to exempt 

sources in Wise County from major source RACT requirements upon notice by the 

9 
TCEQ via publication in the Texas Register that Wise County is no longer a part of the 

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 only with reformatting and 

minor stylistic changes were not considered, and no changes were made based on such 

comments. 

SUBCHAPTER A: DEFINITIONS 

Section 11J.10, Definitions 

The commission re,~ses the definitions of applicable ozone nonattainment areas in 

§117.10(2). The commission adopts the removal of existing §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 of compliance dates, and 

sources of NOx previously subject to these divisions are now required to comply with 

more stringent rules in existing divisions relating to the expanded nine-county DFW 

10 
area. The commission re-letters existing §117.10(2)(C), "Dallas-Fort Worth 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-Fort Worth eight-hour ozone nonattainment area" includes 

Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant 

Counties. For the purposes of Chapter 117, Subchapter D, Combustion Control at Minor 

Sources in Ozone Nonattainment Areas, the revised definition ofthe DFW area includes 

Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant 

Counties; and for all other divisions of Chapter 117, the revised definition of the DFW 

area includes Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, 

Tarrant, and Wise Counties. This adopted change to the definition of "Dallas-Fort Worth 

eight-hour ozone nonattainment area" is necessary because 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 of independent power producers in the ozone 

nonattainment areas. Systems that are owned or operated by independent power 

producers and are located in the Beaumont-Port Arthur (BP A) 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 independent power producers in the Houston-GalvestonBrazoria (HGB) ozone nonattainment area are subject to the industrial, commercial, and 

institutional rules in Subchapter B. 

11 
The commission therefore revises §117.10(14) to clarify this difference in applicability 

between the different ozone nonattainment areas for independent power producers. The 

adopted revisions to subparagraph (A) add independent power producers but limit the 

applicability of the definition to only the BPA and DFW areas. Adopted changes to 

§117.10(14)(A) include removal of existing §117.10(14)(A)(ii), "Dallas-Fort Worth," 

consistent vvith 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 

necessary to address specific combustion unit types that are part of electric power 

generating systems located in the HGB ozone nonattainment area that are subject to 

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 that the 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 adopted to clarify the existing 

definition of an "electric power generating system" and are not intended to expand the 

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 of Texas (ERCOT) 

Protocols to the most recent published version of the ERCOT Protocols, August 13, 

2014. 

The commission revises the definition of "large utility system" in §117.10(24) to remove 

the reference to "Dallas-Fort Worth" as an applicable ozone nonattainment area to be 

consistent with the removal of existing §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 of reference to "Dallas-Fort Worth" or 

"Dallas-Fort Worth 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 applicability threshold of 

at least 100 tpy of NOx 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," and to reflect the difference 

in the applicability threshold because of the 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 of the reference to "Dallas-Fort Worth" as an applicable ozone nonattainment 

area to be consistent with the removal of existing §117.10(2)(B). 

13 
The 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 

Reasonably Available Control Technology (RACT), to define unit as any boiler, 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: COMBUSTION CONTROL AT MAJOR INDUSTRIAL, 

COMMERCIAL, AND INSTITUTIONAL SOURCES IN OZONE NONATTAINMENT 

AREAS 

DIVISION 2: DALLAS-FORT WORTH OZONE NONATTAINMENT AREA MAJOR 

SOURCES 

The commission adopts the repeal of existing Subchapter B, Division 2, which has been 

made obsolete by the passing of compliance dates because sources of NOx previously 

subject to this division are now required to comply with more stringent rules in existing 

Subchapter B, Division 4· 

DIVISION 4: DALLAS-FORT WORTH EIGHT-HOUR OZONE NONATTAINMENT 

AREA MAJOR SOURCES 

To address new RACT requirements for sources of NOx located in Wise County, the 

14 
commission adopts a new section, §117-405, in revised Subchapter B, Division 4 that will 

include new rules applicable to any major stationary source of NOx in Wise County. New 

NOx RACT requirements necessary for major stationary sources of NOx 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 of applicable 

unit types 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 unit types located in specific counties in the 

revised DFW eight-hour ozone nonattainment area will be subject to the adopted 

revisions of Subchapter B, Division 4· Adopted §117-400(a) retains the list of applicable 

units located at major sources of NOx in existing §117-400 and specifies that these units 

must be located at major sources of NOx located in Collin, Dallas, Denton, Ellis, 

Johnson, Kaufman, Parker, Rockwall, or Tarrant County. This change is necessary to 

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 of the one 

wood-fired boiler located in Kaufman County. The wood-fired boiler identified in 

Kaufman County in the calendar year 2012 TCEQ Point Source Emissions Inventory 

(2012 EI) vvill be an applicable unit under revised §117-400(a) subject to the NOx 

emission specification of adopted new §117-405(a) as an ICI boiler. 

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

located in Wise County that vvill be subject to new §117-405(b). The adopted stationary 

15 
source type categories are ICI process heaters, stationary gas turbines, and stationary 

internal combustion engines. 

Section 117.403, Exemptions 

Adopted revisions to §117-403 clarify exemption criteria of units that will be exempt 

from specified requirements of revised Subchapter B, Division 4· To be consistent with 

the adopted revisions in §117-400, the commission revises §117-403(a), which retains the 

list of applicable unit types, sizes, and uses in existing §117-403(a). The commission 

specifically lists Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, or 

Tarrant County in subsection (a) to make clear that the list of exemptions provided in 

the subsection is only applicable in those counties and because exemptions applicable in 

Wise County are adopted to be listed separately. Changes to existing §117-403(a)(4) are 

adopted to facilitate consistency between the unit size exemption threshold in 

§117-403(a)(4) and the existing definition of maximum rated capacity, as defined in 

§117.10. Adopted revisions to §117-403(a)(7)(A) and (B) are necessary to clarify that the 

exemption criteria for research and testing and performance verification and testing 

refer to research, testing, and performance verification of the stationary gas turbine or 

stationary internal combustion engine itself. 

Revisions to §117-403(a)(7)(D) are adopted in order to clarify that unit operation for 

testing or maintenance purposes up to 100 hours per year refers to testing and 

maintenance of the stationary gas turbine or stationary internal combustion engine 

itself. In addition, the commission revises the operating hours limit for exemption 

criteria for stationary gas turbines and stationary internal combustion engines from a 

16 
rolling 12-month average to a rolling 12-month basis. The O"\\rner 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-month basis, as opposed to calculating the average of 

all operating hours during a consecutive 12-month period. A 12-month rolling average 

would only apply to an hours per month limit, thus conflict with an hour per year limit 

while a 12-month rolling basis is the preceding 12-month total, ·which matches the 100 

hours per year limit. This will more accurately reflect the intent of the rule and how an 

affected unit will demonstrate compliance with the operating restriction of a total of 100 

hours per year. Similarly to more accurately reflect the intent of the rule, revisions to 

existing §117-403(a)(8)(A) and (g)(A) are adopted by the commission to specify that the 

operating hours limit for exemption criteria for stationary diesel engines will be on a 

rolling 12-month basis and not on a rolling 12-month average and demonstrate how an 

affected unit \Vill demonstrate compliance \'Vith the operating restriction of a total of 100 

hours per year. The owner or operator of an affected unit \'Vill sum all operating hours 

for a consecutive 12-month period, and continue doing so on a rolling 12-month basis, 

as opposed to calculating the average of all operating hours during a consecutive 12-

month period. 

The commission deletes existing §117-403(b), concerning increment of progress (IOP) 

exemptions, because the provisions reference existing §117-410(a), which is concurrently 

adopted for deletion by the commission. The provisions of deleted §117-403(b) apply to 

gas-fired stationary, reciprocating internal combustion engines which, due to the 

passing of compliance dates, are now subject to more stringent rules in existing 

Subchapter B, Division 4· 

17 
Adopted §117-403(b) specifies the unit types, sizes, or uses for units located in Wise 

County that will be exempt from the requirements of this division. The unit type, 

maximum rated capacity, or specific use of a unit for which compliance with the adopted 

NOx emission specifications is technically or economically infeasible are exempted from 

the provisions of this 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 per hour (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 and the HGB 

area. 

The following stationary gas turbines and stationary internal combustion engines \'\>ill be 

exempt in adopted §117-403(b)(2)(A)- (E): gas turbines and engines used in research 

and testing of the unit, used for purposes of performance verification and testing of the 

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 itself is allowed up to 100 hours per year, based on a rolling 12-

month basis); or used in response to and during the existence of any officially declared 

disaster or state of emergency. These exemptions are adopted due to the limited 

number, if any, of these unit types used in this dedicated service. 

18 
Adopted §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 meet the applicability criterion of stationary 

internal combustion engine in adopted §117-400(b); however, no units of these types 

were identified in the 2012 EI for Wise County; and the commission did not adopt 

emission specifications for these unit types. 

Adopted §117-403(b)(5) specifies an exemption for stationary gas-fired engines ·with a 

horsepower (hp) rating ofless than so hp. This is consistent with the size exemption 

threshold currently provided for stationary gas-fired engines in the other nine counties 

of the nonattainment area previously established as a reasonable threshold to 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 Reasonably Available 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-fired boilers 

19 
located 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 particular wood fuel-fired boiler because the facility has already installed the 

controls necessary to meet the requirement, the commission does not contend that 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 unit types at major ICI stationary sources ofNOx located in Wise County: 

process heaters; stationary, reciprocating internal combustion engines; and stationary 

gas turbines. Adopted new §117-405(b)(1) will establish the NOx emission specifications 

of 0.10 lb/MMBtu (or alternatively, 82 parts per million by volume (ppmv), at 3.0% 

oxygen (Oz), dry basis) for process heaters vvith a maximum rated capacity equal to or 

greater than 40 MMBtujhr. Combustion modifications, such as dry low-NOx 

combustors, may be necessary for process heaters vvith a maximum rated capacity equal 

to or greater than 40 MMBtu/hr to comply vvith 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 may be necessary for a liquid-fired process 

heater to comply with the adopted NOx emission specifications in new §117-405(b)(1). 

20 
Adopted new §117-405(b)(2) provides NOx emission specifications for stationary, 

reciprocating internal combustion engines. The new language 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 limited to 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 be based on specific engine process parameters and the 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 limited to 12.0 g/hphr, and on or after June 1, 2015, will be limited to 2.0 gjhp-hr. Any Clark, model HBAGT 

or HBA-6, gas-fired, lean-burn two-cycle engines placed into service, modified, 

reconstructed, or relocated before June 1, 2015, will be limited to 12.0 g/hp-hr, and on 

or after June 1, 2015, '"ill be limited to 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 limited to 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 limited to 2.0 g/hp-hr, regardless of the 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 of a secondary catalyst module may be required to meet the adopted 

21 
emission 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 of NSCR 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, if any, of these engine makes and models; retrofit 

options or kits to reduce NOx emissions may not exist for some of these particular 

makes and models; some units may have already undergone combustion modifications, 

such as low-emission combustion technology, to reduce emissions and thus may be 

unable to further reduce NOx emissions; and, in some cases, the cost to retrofit the unit 

may be more than the cost of a new unit. The commission therefore contends that these 

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 

comply vvith the adopted 2.0 g/hp-hr emission specification, if necessary. Any new gasfired, lean-burn engines installed in Wise County should be able to meet the adopted 2.0 

g/hp-hr standard without modification or installation of additional controls. 

The commission acknowledges that the current emission specifications for stationary 

gas-fired, lean-burn engines in the other nine counties of the DFW eight-hour ozone 

nonattainment area are between 0.50 and 0.70 g/hp-hr and are more stringent than the 

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 

22 
Wise 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 of SCR technology ( (31 TexReg 10599) December 29, 2006, issue of the 

Texas Register). SCR would cost more than the technologies already evaluated for the 

particular stationary engines in Wise County and would likely result in the replacement 

of many of the gas-fired, lean-burn engines in Wise County. Such an outcome is contrary 

to the definition of RACT, i.e., the lowest emission limitation that a particular source is 

capable of meeting by the application of control technology that is reasonably available 

considering technological and economic feasibility. A control level cannot represent 

RACT for a "particular source" if it is more cost-effective to replace that source \vith an 

entirely new source in order to meet the emission limitation. The commission's adoption 

of the 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 necessary to reach attainment can, and may, go beyond RACT 

requirements. Some of the NOx control requirements adopted in 2007 for the DFW 

1997 ozone NAAQS attainment demonstration were based only on RACT level of control 

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 indicated that the NOx emission specifications would fulfill RACT, 

the distinction is necessary to make clear the commission's intent for RACT in Wise 

County. Additionally, the commission is allowed to make source-specific RACT 

determinations, as the definition of RACT states. The commission contends that the 

23 
NOx emission specifications in adopted §117-405(b)(2)(B) present RACT for the 

particular gas-fired lean-burn engines in Wise 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 of stationary 

engmes. 

The commission adopts new §117-405(b)(3) for NOx emission specifications for 

stationary gas turbines in Wise County. Stationary gas turbines ""ith a hp rating ofless 

than 10,000 hp will be limited to 0.55lbjMMBtu, and stationary gas turbines \vith a hp 

rating of 10,000 hp or greater will be limited to 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 provided by affected source owners and operators: retrofit 

options or kits to reduce NOx emissions may not exist for some of these particular 

makes and models; some units have already been retrofitted with dry low-NOx 

combustors to reduce emissions and thus may be unable to further reduce NOx 

emissions; and in some cases the cost to retrofit the unit may be more than the cost of a 

new unit. In response to comments, the commission is eliminating both the proposed 

unit size category of industrial gas-fired turbines with a rating ofless than 4,500 hp in 

subsection (b)(3)(A) and the proposed unit size category for units with a rating of 4,500 

hp or greater but less 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 

24 
size 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 and the 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 provided by affected source ovvners and 

operators of these units in Wise County, the commission determined that some affected 

units may not be able to meet the proposed NOx RACT emission standard of 0.20 

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 of ongoing emissions 

performance was based on existing emissions data in the 2012 EI, which the 

commission used to 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 greater but less than 10,000 hp. Additional information 

provrided by commenters indicated unit performance variability among various turbine 

model ratings, and stack test data provrided by an affected source owner or operator for 

specific units identified in Wise County, indicated greater unit-specific performance 

variability. The commission therefore determined that o.sslb/MMBtu for units rated 

less than 10,000 hp is an appropriate RACT control level considering current 

performance levels of existing units in Wise County and is consistent with the 

commission's determination of RACT at proposal. Based on the revised NOx emission 

25 
specifications, the commission contends that the adopted emission levels for both unit 

size categories satisfy RACT requirements considering technological and economic 

feasibility. 

Adopted new §117-405(c), concerning NOx averaging time, specifies the averaging times 

for compliance with the emission specifications of new §117-405(a) and (b). New 

§117-405(c)(1) specifies the averaging time for units equipped vvith CEMS or predictive 

emissions monitoring systems (PEMS) and provides three options under subparagraphs 

(A)- (C). Adopted subparagraph (A) specifies a rolling 30-day average, in units of the 

applicable emission standard. Adopted subparagraph (B) specifies a block one-hour 

average basis, in the units of the applicable emission standard. Adopted subparagraph 

(C) specifies a block one-hour average, in pounds per hour, for boilers and process 

heaters, calculated based on the maximum rated capacity and the 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 of the applicable 

emission standard but 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) that vvill establish emission specifications for 

related emissions from any unit subject to the emission specifications in new 

§117-405(a) or (b). This is necessary to ensure that the NOx reduction strategies of this 

adopted rulemaking do not result in a significant increase in emissions of other 

pollutants. Adopted new §117-405(d)(1) establishes a carbon monoxide (CO) emission 

specification of 400 ppmv at 3.0% Oz, dry basis (or alternatively, 3.0 g/hp-hr for 

26 
stationary internal combustion engines; or 775 ppmv at 7.0% 02, dry basis for wood 

fuel-fired boilers or process heaters) on a rolling 24-hour averaging period for units 

equipped vvith CEMS or PEMS for CO, and on a block one-hour averaging period for 

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 corrected to 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 period for units equipped with CEMS or PEMS for ammonia 

and on a block one-hour averaging period for units not equipped vvith CEMS or PEMS 

for ammonia. Adopted new subsection (d)(3) specifies that the correction of CO 

emissions to 3.0% 02, dry basis, does not apply to boilers or process heaters operating at 

less than 10% of maximum load and with stack 02 more than 15%. 

Adopted new §117-405(e) specifies conditions for compliance flexibility with the NOx 

emission specifications of new §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 of new §117-405(a) or (b). Adopted new subsection (e)(2) prohibits using 

revised §117-425 as a method of compliance 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 

27 
for an alternative to the CO and ammonia emission specifications of adopted 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 that the anticipated NOx emission reductions associated with 

this adopted rulemaking will be realized. The adopted new subsection (f)(1) establishes 

that the maximum rated capacity used to determine the applicability of the emission 

specifications in new §117-405, the initial compliance demonstration in revised §117-435, 

the monitoring and testing requirements in revised §117-440, and the final control plan 

requirements in new §117-452, respectively, must be the greater ofthe maximum rated 

capacity as of December 31, 2012, the maximum rated capacity after December 31, 2012, 

or the maximum rated capacity authorized by 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 of revised new Subchapter B, Division 4, is determined by the most 

specific classification applicable to the unit as of December 31, 2012. Finally, new 

§117-405(±)(3) specifies that a source that met the definition of a major source as of 

December 31, 2012, is always classified as a major source for the purposes of revised 

Subchapter B, Division 4. A source that did not meet the definition of major source on 

December 31, 2012, but which at any time after December 31, 2012, becomes a major 

source, will from that time forward always be classified as a major source for purposes 

of revised Subchapter B, Division 4. 

Section 117.410, Emission Specifications for Eight-Hour Attainment Demonstration 

The commission removes existing §117-410(a) and moves existing §117-410(b), Emission 

28 
specifications for eight-hour ozone attainment demonstration, to §117-410(a). The 

commission established the emission specifications under existing §117-410(a) for 

stationary, gas-fired rich-burn and lean-burn reciprocating internal combustion engines 

with a maximum rated capacity of 300 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 of the 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 and because emission specifications applicable in Wise 

County are listed separately. 

Because of the removal of subsection (a), all other subsections are re-lettered 

accordingly. In addition, the commission inadvertently omitted Parker County from the 

list of counties in revised subsection (a) in the proposal publication of the rulemaking. 

The commission has included Parker County in the adoption of revised 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 of existing 

§117.410(b) into revised §117-410(a). 

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

29 
any unit subject to the emission specifications in revised §117-410(a). The commission 

deletes existing subsection (d)(4)(A) to be concurrent with the amendment of existing 

§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 

of paragraph (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 subject to 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 of any stationary diesel or dual-fuel engine for testing or 

maintenance between the hours of 6:00a.m. and noon refers to testing or maintenance 

of the 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 provided to 

owners or operators of affected units for demonstrating compliance with the NOx 

emission specifications of adopted new §117-405 in addition to those of revised §117-410. 

30 
Revised §117-423(b) specifies the equations and procedures for determining the source 

cap allowable NOx mass emission rate. The equation in revised §117-423(b)(1) specifies 

how to 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 period for 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 

subject to new §117-405 and the existing date and date range in existing subsection 

(b)(1) that apply to units subject to §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, of the equation to properly cancel. Without this change, the equation will 

calculate a value that will misrepresent the cap that is intended by the 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 

31 
cross-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 permanently retired, decommissioned, or rendered inoperable unit in the 

source cap. Adopted revisions to subsection (g)(1) specify that the shutdown must have 

occurred after December 31, 2012, for units subject to new §117-405. In addition for 

units subject to new §117-405, if the 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 must be the average daily heat input for the continuous 

time period that the unit was in service, consistent with the heat input used to 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 and the 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 of activity of the units participating in the cap and the baseline that is 

established for modeling emissions at the time the regulations are developed. The cap is 

then based on that year. 

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 

of Subchapter 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 that verification of operational status must include 

completion ofthe initial monitor certification, which includes not only the 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 of units that will be subject to 

the fuel metering requirements of revised §117-440(a), adds a section cross-reference to 

new §117-405, concerning emission specifications for RACT. The commission is also 

clarifying that operation of the totalizing fuel flow meter in conjunction with the unit 

operating time is not time averaged over a calendar year but instead continuous 

operating time during a calendar year that is representative of the total fuel meter 

33 
operating time. This total fuel meter operating time must still be at least 95% of the time 

that the unit operates. In addition, the commission adopts revised §117-440(a)(1)(A) to 

provide an exemption for wood-fired boilers to the fuel flow metering requirements of 

existing subsection (a)(l). Instead of installing and operating a totalizing fuel flow 

meter, owners or operators of wood-fired boilers in the 10-county DFW 2008 eight-hour 

ozone nonattainment area will demonstrate compliance with the monitoring provisions 

of revised Subchapter B, Division 4 through either fuel use records that \vill be required 

in adopted revised §117-445CD or the alternative monitoring provision of existing 

§117-440(a)(2)(A). As mentioned previously in this 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 used to 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 of the NOx monitoring requirements 

34 
of existing §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 of a 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 must be used to demonstrate compliance with 

the emission specifications after the initial demonstration of compliance required by 

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 of new §117-405(a) or (b) or revised 

§117-410(a). The commission deletes existing paragraph (1), which has now been made 

obsolete by the passing of compliance dates in existing §117.9030(a) and also contains 

provisions for units subject to existing §117-410(a). The amendment of paragraph (1) vvill 

be concurrent with the adopted amendment of existing §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 of units 

subject to the emission specifications of new §117-405(a) or (b) or revised §117-410(a) to 

test the units as specified in revised §117-435, "Initial Demonstration of Compliance," in 

35 
accordance "\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 of the 

reference to existing §117.410(b). Amended subsection (k)(2) is a retesting requirement 

for OYI'llers or operators to retest any unit subject to the emission specifications of new 

§117-405(a) or (b) or revised §117-410(a) after any modification that could be 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, and Reporting 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 of this preamble, existing §117-410(a) is concurrently amended due 

to the passing of compliance dates in existing §117.9030(a) and because 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 of existing §117-445(b)(2), which detail the 

notification requirements for units subject to 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 of the date of any CEMS or PEMS performance evaluation conducted under 

revised §117-440 or stack test conducted under revised §117-435. 
Adopted §117-445(e), which specifies the semiannual reporting requirements for 0\vners 

or operators of any gas-fired engines, includes a section cross-reference to new §117-405. 

Written reports of excess emissions and the air-fuel ratio monitoring system 

performance must be submitted to the executive director. 

Adopted §117-445(f) specifies requirements for written or electronic records for owners 

or operators of units subject to the requirements of this division. Adopted subsection 

(f)(4), which specifies that records of monthly hours of operation must be maintained 

for units claiming an exemption based on hours per year of operation, 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 of stationary gas turbines are also 

required to maintain records of the purpose of unit operation, such as the identification 

of the type of emergency situation. 

The commission revises existing subsection (f)( g) to clarify that records retention of 

each time a stationary diesel or dual-fuel engine is operated for testing and maintenance 

refers to testing and maintenance of the 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) and the re-lettering of existing §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 of any unit at a major source of NOx in the 10-county DFW area 

that is subject to new §117-405(a) or (b) or revised §117-410(a) to submit an initial 

control plan and lists the content requirements for the initial control plans. Sources in 

the nine-county DFW area already subject to §117-410 were previously required to 

submit the initial control plans. Sources subject to adopted new §117-405 will be 

required to submit initial 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 must be submitted to the Office of Compliance and Enforcement, the 

appropriate regional office, and the Office of Air by the applicable date specified for 

initial control plans in revised §117.9030. 

Finally, the commission deletes existing §117-450(c), which specifies that for units 

located in Dallas, Denton, Collin, and Tarrant Counties, subject to existing Subchapter 

B, Division 2, the owner or operator may elect to submit the most recent revision of the 

final control plan required by repealed §117.254 in lieu of the initial control plan 

required by existing subsection (a). The adopted deletion of §117-450(c) is concurrent 

with the adopted repeal of existing Subchapter B, Division 2 due to the passing of 

compliance dates and because sources of NOx 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 Reasonably Available Control 

Technology 

The commission adopts new §117-452 requiring the owner or operator of any unit 

subject to adopted new §117-405(a) or (b) at a major source of NOx to submit a final 

control report to show compliance vvith the requirements of new §117-405. Adopted new 

§117-452(a)(1)- (5) specifies the content requirements of the report. The final control 

report must identify which sections are used to demonstrate compliance. The report 

must include: the method of NOx control for each unit; the emissions measured by 

testing required in adopted revised §117-435; and the specific rule citation for any unit 

with a claimed exemption from the emission specifications of adopted new §117-405(a) 

or (b). In addition, if a compliance stack test report or monitor certification report 

required by adopted revised §117-435 is not being submitted concurrently -with the final 

control report, the final control report must include the date the compliance stack test 

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, or both offices. 

Adopted new §117-452(b)(1)- (3) specifies that for sources complying with revised 

§117-423 in addition to the requirements of new 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 of monitoring emissions; the method of providing 

39 
substitute emissions data when the NOx monitoring system is not providing valid data; 

and an explanation of the basis of the values of variables Hi and Hmi. 

Adopted new §117-452(c) specifies the report must be submitted to the Office of 

Compliance and Enforcement, the appropriate regional office, and the Office of Air by 

the applicable date specified for final control plans in revised §117.9030(a). The plan 

must be updated with any emission compliance measurements submitted for 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 for Attainment Demonstration 

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 of NOx to submit a final control 

report to show compliance with the requirements of revised §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 must be submitted to the Office of 

Compliance and Enforcement, the appropriate regional office, and the Office of Air by 

the applicable date specified for final control plans in revised §117.9030. 

40 
Section 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 may be submitted by the mvner or operator, along 

with any required permit applications. Paragraphs (1) - (3) specify that such a plan must 

adhere to the requirements and the final compliance dates of the division; and that 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 new unit must be included in the source cap if the unit belongs to an 

equipment category that is included in the source cap. 

SUBCHAPTER C: COMBUSTION CONTROL AT MAJOR UTILITY ELECTRIC 

GENERATION SOURCES IN OZONE NONATTAINMENT AREAS 

DIVISION 2: DALLAS-FORT WORTH OZONE NONATTAINMENT AREA UTILITY 

ELECTRIC GENERATION SOURCES 

The commission adopts the repeal of existing Subchapter C, Division 2, which has been 

made obsolete by the passing of compliance dates because sources of NOx previously 

subject to this division are now required to comply V\ith more stringent rules in existing 

Subchapter C, Division 4· 

DIVISION 4: DALLAS-FORT WORTH EIGHT-HOUR OZONE NONATTAINMENT 

AREA UTILITY ELECTRIC GENERATION SOURCES 

To address new RACT requirements for sources of NOx located in Wise County, the 

commission adopts revisions in Subchapter C, Division 4, that will revise existing rule 

41 
language and requirements associated with any major utility electric generation source 

of NOx in the 10-county DFW 2008 eight-hour ozone nonattainment area. The 

definition of a major source ofNOx in Wise County is in adopted §117.10(29)(C) and 

includes any stationary source or group of sources located vvithin a contiguous area and 

under common control that emits or has the PTE 100 tpy of NOx. 

Section 117.1303, Exemptions 

Adopted revisions to §117.1303 clarify exemption criteria of units that \'Vill be exempt 

from specified requirements of adopted revised Subchapter C, Division 4. The 

commission adopts removal of the 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 adopted to make the utility rules that apply to gas 

turbines in the DFW area consistent \Nith the major source industrial rules in the DFW 

area and to provide a simpler RACT demonstration for the affected utility sources. 

Affected auxiliary steam boilers and gas turbines will be required to meet the NOx 

emission specifications and monitoring and testing requirements, which are not 

changed in revised Subchapter C, Division 4. Based on a TCEQ review of the 2012 EI 

and available air permit information, the TCEQ expects that all existing auxiliary steam 

boilers in the nine counties of the DFW 1997 eight-hour ozone nonattainment area were 

constructed prior to the exemption date of November 15, 1992. Therefore, the 

exemption in §117.1303(a)(1) did not apply to these existing units; and no impact is 

expected as a result of the adopted repeal of the exemption. New units will either qualify 

for the existing exemption in §117.1303(a)(2) based on annual heat input or will be 

required to comply with the provisions of revised Subchapter C, Division 4. No auxiliary 

42 
steam boilers were identified in Wise County. 

After reviewing the 2012 EI and available air permit information for all existing gas 

turbines in the nine counties of the DFW 1997 eight-hour ozone nonattainment area, the 

TCEQ has concluded that all existing gas turbines in the nine counties of the 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 of the affected turbines 

already meet the NOx emission specifications and monitoring requirements of revised 

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 meet the NOx 

emission specifications and monitoring requirements of Subchapter C, Division 4, the 

commission does not expect adverse impacts to owners or operators of affected units in 

the nine counties of the DFW area as a result of deleting 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 or will be required to comply with the 

provisions of revised Subchapter C, Division 4. One utility electric generation source in 

Wise County was 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 limit for exemption criteria for stationary 

gas turbines and stationary internal combustion engines in adopted §117.1303(a)(2)(B) 

43 
from a rolling 12-month average to a rolling 12-month basis. 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-month basis, as opposed to calculating the average of 

all operating hours during a consecutive 12-month period. This will more accurately 

reflect the intent of the rule and how an affected unit will demonstrate compliance vvith 

the operating restriction of a total of 850 hours per year. 

Section 117.1310, Emission Specifications for Eight-Hour Attainment Demonstration 

Adopted §117.1310(b) establishes emission specifications of related emissions for units 

that are subject to the emission specifications of subsection (a) of this section. The 

commission adopts deletion of existing §117.1310(b)(1) and (2) due to removing an 

ammonia emission specification found in existing subsection (b)(2)(B) and the 

restructuring of subsection (b) that will 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 only to units that inject urea or 

ammonia into the exhaust stream for NOx control while existing paragraph (2)(B) 

applies to all other units. Existing §117.1310(b)(2)(B) cites a RACT emission 

specification for ammonia that is now obsolete, and the commission contends that an 

ammonia emission specification is needed only for units that use urea or ammonia for 

control of NOx 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 specify the monitoring procedures to be 

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 how units 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 how units 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 that the system-·wide heat input weighted average is 

calculated for each hour, and the average of that hourly data during the 168-hour test 

period is used to demonstrate compliance. Finally, the commission renumbers existing 

45 
paragraph (5) to paragraph (7). 

Section 117.1340, Continuous Demonstration of Compliance 

The commission adopts changes to existing §117.1340, which details the operating, 

monitoring, and testing procedures required by owners or operators of units subject to 

the emission specifications of adopted 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) and to 

§117.1310(b)(3) to coincide \Vith the changes adopted in §117.1310(b). Alternative NOx 

monitoring provisions for auxiliary steam boilers 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 rated less than 30 megawatts or that are not peaking 

gas turbines that use steam or water 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, and Reporting Requirements 

Adopted subsection (d) specifies the semiannual reporting requirements for owners or 

operators of units 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 of monitoring systems for which the owner or operator 

must submit a summary report and an excess emission report if the monitoring system 
downtime for the reporting period is greater than or equal to 5.0% of the total unit 

operating time for the reporting period. Adopted revised subsection (e)(3) also clarifies 

that the mvner or operator of each unit subject to the requirements of the division shall 

maintain records of the quantity and type of each fuel burned in 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 adopted for repeal, to be consistent with the 

adopted repeal of existing Subchapter C, Division 2. 

Section 117.1354, Final Control Plan Procedures for Attainment Demonstration 

Emission Specifications 

Adopted §117.1354 requires the mvner or operator of utility boilers listed in §117.1300 at 

a major source of NOx to submit a final control plan to show compliance vvith the 

requirements of revised §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: GENERAL MONITORING AND TESTING REQUIREMENTS 

DIVISION 1: COMPLIANCE STACK TESTING AND REPORT REQUIREMENTS 

Section 117.8000, Stack Testing Requirements 

The commission adopts §117.8ooo(e) to establish emission testing provisions for boilers 

47 
and process heaters that are used on a temporary basis and are therefore installed or 

relocated to an account to be operated for a brief period of time. The owner or operator 

of a site that temporarily brings a unit on-site for short periods of time will not have 

sufficient amount of time to perform the testing requirements of the 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 temporary boilers or process heaters for less than 6o consecutive calendar days by 

allovving the ovvner or operator to use previous stack test results conducted on the boiler 

or process heater or a manufacturer's guarantee of performance. The previous testing 

results or manufacturer's guarantee must be for the unit that will be newly installed at 

the account and not testing results or manufacture's guarantee of performance for a 

similar unit make or model. For the purposes of this 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 of that account. Adopted 

subsection (e)(1) specifies that if previous testing results are used, testing must have 

been conducted on the same boiler or process heater in accordance vvith §117.8ooo(b)-

(d). In addition, the ovvner or operator of the site temporarily installing the unit shall 

maintain a record of the previous test report as specified by the 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 later than 6o consecutive calendar days after installing the 

unit at the account. If the owner or operator chooses not to physically remove the unit 

from the account, the owner or operator shall comply with the testing requirements as 
specified in §117.8ooo(b)- (d). Lastly, extensions to the 6o consecutive calendar days 

limitation of adopted subsection (e) vvill not be provided. This is to prevent 

circumvention of satisfying the applicable initial demonstration of compliance and 

testing requirements that will otherwise apply to the affected stationary boiler 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 of Chapter 117. 

SUBCHAPTER H: ADMINISTRATIVE PROVISIONS 

DIVISION 1: COMPLIANCE SCHEDULES 

Section 117.9010, Compliance Schedule for Dallas-Fort Worth Ozone Nonattainment 

Area Major Sources 

The commission adopts the repeal of existing §117.9010, which has been made obsolete 

by the passing of compliance dates because sources of NOx previously subject to this 

section are now required to comply with more stringent rules in adopted revised 

§117.9030. 

Section 117.9030, Compliance Schedule for Dallas-Fort Worth Eight-Hour Ozone 

Nonattainment Area Major Sources 

The commission adopts deletion of existing §117.9030(a), concerning compliance 

schedule for IOP emission specifications. With the passing of the 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), which the 

49 
commission 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 of adopted new §117-405(a) and (b). Adopted §117.9030(a)(1) requires the 

owner or operator of any stationary source ofNOx in the 10-county DFW 2008 eighthour ozone nonattainment area that is a major source of NOx and is subject to new 

§117-405(a) or (b) to submit the initial control plan required by adopted revised 

§117-450 no later than June 1, 2016, and to comply with all other requirements of 

adopted revised Subchapter B, Division 4 as soon as practicable but no later than 

January 1, 2017. Adopted §117.9030(a)(2) specifies that the owner or operator of any 

stationary source of NOx that becomes subject to the requirements of adopted revised 

Subchapter B, Division 4 on or after January 1, 2017, shall comply with the 

requirements of Subchapter B, Division 4 as soon as practicable but no later than 6o 

days after becoming subject. For example, new units placed into service after January 1, 

2017, will be required to comply V\ri.thin 6o days after startup of the unit. Existing units 

prevriously exempt from the rule but no longer qualifyring for that exemption after 

January 1, 2017, will be required to comply V\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 if Wise County is not designated a 

nonattainment county as part of the DFW 2008 eight-hour ozone nonattainment area, 

an owner or operator of any unit located at a major stationary source of NOx located in 

Wise County will not be required to comply with the applicable requirements of adopted 

50 
revised Subchapter B, Division 4· The commission vvill publish notice of a change in 

nonattainment status for Wise County in the Texas Register. This change is adopted 

because Texas is currently in litigation over the inclusion of Wise County in the DFW 

2008 eight-hour ozone nonattainment area, as discussed elsewhere in this preamble. As 

the commission cannot predict the outcome of this litigation at this time, the 

commission is adopting rules that will ensure that sources within Wise County will be 

properly accounted for in the DFW 2008 attainment demonstration SIP. In response to 

comments received, the commission is replacing the proposed language "Wise County is 

no longer designated nonattainment for the 2008 Eight-Hour Ozone National Ambient 

Air Quality Standard" in §117.9030(a)(3) with "the Wise County nonattainment 

designation for the 2008 Eight-Hour Ozone National Ambient Air 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 Schedule for Dallas-Fort Worth Ozone Nonattainment 

Area Utility Electric Generation Sources 

The commission adopts the repeal of existing §117.9110, which has been made obsolete 

by the passing of compliance dates because sources of NOx previously subject to this 

section are now required to comply with more stringent rules in adopted revised 

51 
§117.9130. 

Section 117-9130, Compliance Schedule for Dallas-Fort Worth Eight-Hour Ozone 

Nonattainment Area Utility Electric Generation Sources 

Adopted §117.9130 specifies the compliance schedule for owners or operators of electric 

utilities subject to adopted revised Subchapter C, Division 4. Adopted subsection (a), 

which specifies the compliance schedule for existing electric utilities subject to the 

existing rule, deletes a reference to the existing DFW eight-hour ozone nonattainment 

area and adopts the following new list of counties: Collin, Dallas, Denton, Ellis, 

Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties. This change is adopted to 

be consistent with the adopted revised definition of DFW eight-hour ozone 

nonattainment area in §117.10 and to distinguish between the existing compliance 

schedule for sources currently subject to the rule and those that vvill be newly subject by 

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, and Tarrant Counties that \vill be affected by the 

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; and these affected units vvill be required to meet the NOx emission 

specifications and monitoring and testing requirements, which are not changed in 

adopted revised Subchapter C, Division 4. Adopted §117.9130(b)(1) requires the ovvner 

or operator to submit the initial control plan required by revised §117.1350 by no later 

52 
than June 1, 2016. Adopted §117.9130(b)(2) specifies that the o-wner or operator must 

comply with all other requirements of adopted revised Subchapter C, Division 4 as soon 

as practicable but no later than January 1, 2017. 

The commission adopts §117.9130(c) to detail the compliance schedule for electric 

utilities located in Wise County subject to the adopted rule. Adopted §117.9130(c)(1) 

requires the owner or operator to submit the initial control plan required by adopted 

revised §117.1350 by no later than June 1, 2016. Adopted subsection (c)(2) specifies that 

the owner or operator must comply with all other requirements of adopted revised 

Subchapter C, Division 4 as soon as practicable but no later than 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 County that become subject to 

Subchapter C, Division 4 on or after March 1, 2009, and for electric utilities in Wise 

County that become subject to 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 if Wise County is not designated a 

nonattainment county as part of the DFW 2008 eight-hour ozone nonattainment area, 

an owner or operator of an electric utility located in Wise County \!\ill not be required to 

comply with the applicable requirements of adopted revised Subchapter C, Division 4. 

The commission will publish notice of a change in nonattainment status for Wise 

53 
County in the Texas Register. This change is adopted because Texas is currently in 

litigation over the inclusion of Wise County in the DFW 2008 eight-hour ozone 

nonattainment area, as discussed elsewhere in this preamble. As the commission cannot 

predict the outcome of this litigation at this 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 proposed language "Wise County is no longer designated 

nonattainment for the 2008 Eight-Hour Ozone National Ambient Air Quality Standard" 

in §117.9130(e) with "the Wise County nonattainment designation for the 2008 EightHour Ozone National Ambient Air Quality Standard is no longer legally effective." 

DIVISION 2: COMPLIANCE FLEXIBILITY 

Section 117-9800, Use of Emission Credits for Compliance 

Adopted §117.9800 includes section cross-reference updates to be consistent with 

adopted repeal of Subchapter 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 

Reduction Plan (TERP) 

The commission adopts revisions to existing §117.9810, which will remove crossreferences to be consistent with the adopted repeal of Subchapter B, Division 2, and 

Subchapter C, Division 2 and renumber paragraphs accordingly. Adopted revised 

54 
subsection (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 

of subsection (a)(2) - (5). 

Final Regulatory Impact Determination 

The commission reviewed the adopted rulemaking in light of the regulatory impact 

analysis requirements of Texas Government Code, §2001.0225, and determined that the 

adopted rulemaking meets the definition of a "major environmental rule" as defined in 

that statute. A "major environmental rule" means a rule, the specific intent of which is to 

protect the environment or reduce risks to human health from environmental exposure 

and that may adversely affect in a material way the economy, a sector of the economy, 

productivity, competition, jobs, the environment, or the public health and safety of the 

state or a sector of the state. The adopted rulemaking does not, however, meet any of the 

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 set by federal law, unless the rule is specifically 

required by state law; 2) exceed an express requirement of state law, unless the rule is 

specifically required by federal law; 3) exceed a requirement of a delegation agreement 

or contract between the state and an agency or representative of the federal government 

to implement a state and federal program; or 4) adopt a rule solely under the general 

powers of the agency instead of under a specific state law. 

The state previously adopted RACT rules for NOx sources in most of the DFW area as 

55 
part of the 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 of 0.075 ppm with an effective date of May 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 of Collin, 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 meet the mandates of the FCAA under §172(c)(1) and §182(f). FCAA, 

§172(c)(1) requires that the SIP incorporate all reasonably available control measures, 

including RACT, for sources of relevant pollutants. FCAA, §182(f) requires the state to 

submit a SIP revision that implements RACT for all major sources of NOx. The adopted 

rulemaking vvill revise Chapter 117 to implement RACT for all major sources of NOx in 

the DFW area as required by FCAA, §172(c)(1) and §182(f). The adopted rulemaking will 

also extend implementation of RACT to major sources of NOx located in Wise County, 

which was classified as unclassifiablejattainment under the 1997 eight-hour ozone 

standard but is now classified as nonattainment. The commission adopts rules that vvill 

allow the commission to remove the applicability of RACT requirements to sources in 

Wise County, if Wise County was to be removed from the DFW 2008 ozone 

nonattainment area. These specific changes are adopted because Texas is currently in 

litigation over the inclusion of Wise County in the DFW 2008 eight-hour ozone 

nonattainment area, as discussed elsewhere in this preamble. As the commission cannot 

predict the outcome of this litigation at this time, the commission adopts rules that vvill 

ensure that sources vvithin Wise County will be properly accounted for in the DFW 2008 

s6 
attainment 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 Nonattainment Area Major Sources; Combustion Control at 

Major Utility Electric Generation Sources in Ozone Nonattainment Areas, Dallas-Fort 

Worth Eight-Hour Ozone N onattainment Area 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 of 42 USC, §7410, which requires 

states to adopt a SIP that provides for the implementation, maintenance, and 

enforcement of the NAAQS in each air quality control region of the state. While 42 USC, 

§7410 generally does not require specific programs, methods, or reductions in order to 

meet the 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 of emissions rights), as well as schedules and 

timetables for compliance as may be necessary or appropriate to meet the applicable 

requirements of this chapter (42 USC, Chapter 85, Air Pollution Prevention and 

Control). The provisions of the FCAA recognize that states are in the best position to 

determine what programs and controls are necessary or appropriate in order to meet the 

NAAQS. This flexibility allows states, affected industry, and the 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 

57 
relieve a state from developing a program that meets the requirements of 42 USC, 

§7410. States are not free to ignore the requirements of 42 USC, §7410 and must develop 

programs to assure that their contributions to nonattainment areas are reduced so that 

these areas can be brought into attainment on schedule. The adopted rulemaking would 

revise Chapter 117 to implement RACT for all major sources ofNOx in the DFW area as 

required by FCAA, §172(c)(1) and §182(±). 

The requirement to provide a fiscal analysis of adopted regulations in the Texas 

Government Code was amended by Senate Bill (SB) 633 during the 75th Legislature, 

1997. The intent of SB 633 was to require agencies to conduct a regulatory impact 

analysis of extraordinary rules. These are identified in the statutory language as major 

environmental rules that will have a material adverse impact and vvill exceed a 

requirement of state law, federal law, a delegated federal program or are adopted solely 

under the general powers of the 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 of rules adopted by the agency in the past, it is not 

anticipated that the bill \!\ill have significant fiscal implications for the agency due to its 

limited application." The commission also noted that the number of rules that would 

require assessment under the pro-visions of the bill was not large. This conclusion was 

based, in part, on the criteria set forth in the 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 meet the NAAQS; thus, states must 

58 
develop programs for each area contributing to nonattainment to help ensure that those 

areas will meet the attainment deadlines. Because of the ongoing need to address 

nonattainment issues and to meet the requirements of 42 USC, §7410, the commission 

routinely proposes and adopts SIP rules. The legislature is presumed to understand this 

federal scheme. If each rule adopted for inclusion in the SIP was considered to be a 

major environmental rule that exceeds federal law, then every SIP rule would require 

the full regulatory impact analysis contemplated by SB 633. This conclusion is 

inconsistent \Vith the conclusions reached by the commission in its cost estimate and by 

the Legislative Budget Board (LBB) in its fiscal notes. Since the legislature is presumed 

to understand the fiscal impacts of the bills it passes and that presumption is based on 

information provided by state agencies and the LBB, the commission believes that the 

intent of SB 633 was only to require the full regulatory impact analysis for rules that are 

extraordinary in nature. While the SIP rules will have a broad impact, the impact is no 

greater than is necessary or appropriate to meet the requirements of the FCAA. For 

these reasons, rules adopted for inclusion in the SIP fall under the exception in Texas 

Government Code, §2001.0225(a), because they are required by federal law. 

The commission has consistently applied this construction to its rules since this statute 

was enacted in 1997. Since that time, the legislature has revised the Texas Government 

Code but left this provision substantially unamended. It is presumed that "when an 

agency interpretation is in effect at the time the legislature amends the laws without 

making substantial change in the statute, the legislature is deemed to have accepted the 

agency's interpretation." Central Power & Light Co. v. Sharp, 919 S.W.2d 485, 489 

(Tex. App. Austin 1995); writ denied with per curiam opinion respecting another issue, 

59 
960 S.W.2d 617 (Tex. 1997); Bullock v. Marathon Oil Co., 798 S.W.2d 353, 357 (Tex. 

App. Austin 1990, no writ); Cf Humble Oil & Refining Co. v. Calvert, 414 S.W.2d 172 

(Tex. 1967); Dudney v. State Farm Mut. Auto Ins. 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. Water Auth. v. Trinity Portland Cement 

Div., 563 S.W.2d 916 (Tex. 1978). 

The commission's interpretation of the regulatory impact analysis requirements is also 

supported by a change made to the Texas Administrative Procedure Act (AP A) by the 

legislature in 1999. In an attempt to limit the number of rule challenges based upon APA 

requirements, the legislature clarified that state agencies are required to meet these 

sections of the 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 of Texas 

Government Code, §2001.0225. 

The specific intent of the adopted rulemaking is to protect the environment and reduce 

the risks to human health by requiring control measures for NOx emission sources that 

have been determined by the commission to be 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 of the 2008 eighthour ozone NAAQS and reduce public exposure to NOx. The adopted rulemaking does 

not exceed a standard set by federal law or exceed an express requirement of state law. 

No contract or delegation agreement covers the topic that is the subject of this adopted 

6o 
rulemaking. Therefore, this adopted rulemaking is not subject to the regulatory analysis 

provisions of Texas Government Code, §2001.0225(b), because although the adopted 

rulemaking meets the definition of a "major environmental rule," it does not meet any of 

the four applicability criteria for a major environmental rule. 

The commission invited public 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 Impact Assessment 

The commission evaluated the 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 required by 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 

reasonably taken to fulfill an obligation mandated by federal 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 threat to public health and safety; that is 

designed to significantly advance the health and safety purpose; and that does not 

impose a greater burden than is necessary to achieve the health and safety purpose. 

Thus, this action is exempt under Texas Government Code, §2007.003(b)(13). The 

61 
adopted 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 of the 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. 

Consistency with the Coastal Management Program 

The commission reviewed the adopted rulemaking and found the adoption is a 

rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC 

§sos.n(b)(2), relating to rules subject to the Texas Coastal Management Program · 

(CMP), and vvill, therefore, require that goals and policies of the 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 of the Coastal Coordination Advisory 

Committee and determined that 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 on the CMP. 

62 
Effect on Sites Subject to 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, consistent with the revision process in Chapter 122, upon the effective date of the 

rulemaking, revise their operating permit to include the new Chapter 117 requirements. 

Public Comment 

The commission held two public hearings on the proposal: one in Arlington on January 

15, 2015, and a second hearing in Austin on January 22, 2015. The comment period 

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 requested that the TCEQ remove ceramic tile kilns as a specified named source 

in §117-440(c)(1)(F). Dal-Tile commented that monitoring exhaust NOx in order to 

demonstrate ongoing compliance vvith NOx standards would be more accurately and 

properly demonstrated with periodic stack testing instead of with the existing 

requirement to use either a CEMS or a PEMS. Dal-Tile commented it was the only 

company operating ceramic tile kilns in the DFW area and due to naturally occurring 

trace elements in the raw materials used to produce ceramic tile, the nature of the 

exhaust from the ceramic kilns resulted in aggressive corrosion of the CEMS units. This 

also resulted in a very high degree of maintenance and repairs, coupled with significant 
dovvntime of the CEMS units, which in turn affected the accuracy and reliability of the 

CEMS units. Dal-Tile further commented the data from the CEMS units could not be 

considered high quality due to the amount of downtime and frequency of calibration 

adjustments. Dal-Tile commented these issues were ongoing for all of the CEMS units 

on the kilns. The requirement to use a CEMS or a PEMS on ceramic kilns did not 

provide any public benefit, enhance protection of the environment, or provide efficient 

and equitable administration ofthe NOx emission standard. Dal-Tile also commented 

that their kilns met the definition of a Low-Mass Emission (LME) unit in 40 CFR Part 

75 and, therefore, met the qualifications for using the LME methodology in lieu of using 

a CEMS, as allowed by the EPA in 40 CFR Part 75· 

Response 

The commission solicited comment in the proposed rulemaking ((39 

TexReg 10344) December 26,2014, issue of the Texas Register) on the issue 

of continuous NOx monitoring for ceramic kilns, including the possibility of 

alternatives such as periodic testing. The commission adopted the 

continuous NOx monitoring requirement for ceramic kilns in the DFW area 

in 2007 due to the potential variability in emissions from ceramic kilns. The 

NOx monitoring requirements exist to ensure that actual measured data 

from monitoring for major sources of NOx can be used for comparison to 

and compliance with the applicable NOx emission limit. Based on the 

information provided by the commenter, the commission acknowledges 

that some technical challenges could exist for the use of CEMS at the 

current location where the commenter has installed the CEMS, i.e., 
upstream of the scrubber. However, the commission expects that relocating 

the CEMS downstream of the scrubber would have less potential problems 

for the CEMS. Additionally, the current rule allows for the use of a PEMS in 

lieu of a CEMS. The commenter has not provided sufficient justification for 

why relocating the CEMS or installing a PEMS are not feasible alternatives 

for the commenter's ceramic kilns. Neither has the commenter provided 

sufficient justification for why the continuous NOx monitoring is not 

needed to assure compliance with the rule. Therefore, the commission has 

no basis to consider replacing the continuous NOx monitoring requirement 

using a CEMS or PEMS with an alternative method such as periodic testing. 

No change has been made to the rule in response to this comment. 

Comment 

Dal-Tile also commented it had no control over the required test methods for 

determining fuel calorific value, as part of the stack testing requirements of 

§117.8ooo(c)(6), that may be used by the fuel supplier. Therefore, Dal-Tile requested the 

TCEQ revise the rule language to allow calorific values provided by natural gas suppliers 

to be fully compliant with the rules. 

Response 

Regarding changes to required methods for determining fuel calorific 

value, the commission declines to make the change. The commission did 

not propose changes to §117.8ooo(c)(6), and the suggested change is 

outside the scope of this rule making. Furthermore, the existing rule 

6s 
provision applies to the NOx source owner or operator and not to the fuel 

supplier. The owner or operator has the flexibility to have a separate 

analysis performed to determine the fuel calorific value according to the 

specified methods in the rule. The existing provision also allows the source 

owner or operator to request an alternate method as approved by the TCEQ 

executive director and the EPA. The commission makes no changes in 

response to this comment. 

Comment 

The EPA commented that previous NOx control requirements for natural gas-fired 

compressor engines in the DFW nine-county area and in East Texas counties relied on 

NSCR, catalytic convertors. The EPA commented that these catalytic convertors 

typically require periodic changes of catalysts to maintain NOx control levels. The EPA 

questioned whether Texas performed any follow-up on the affected sources to confirm 

that proper maintenance occurred to ensure NOx controls still met the applicable NOx 

requirements. 

Response 

To date, while the TCEQ has not initiated a targeted review of affected 

sources to confirm whether proper maintenance is occurring to ensure that 

NOx controls still meet the NOx control requirements, like the EPA, the 

TCEQ conducts investigation activities of affected sources, where the 

required maintenance would be one of the issues that is reviewed, and 

determines if an enforcement action is warranted. Source owners or 

66 
operators of affected units subject to the DFW industrial rules are required 

to conduct testing every two years or within 15,000 hours of engine 

operation after the previous emission test and perform quarterly emission 

checks to ensure continued compliance with the NOx emission 

specifications. Affected source owners and operators are also required to 

report in writing to the TCEQ executive director on a semiannual basis any 

excess emissions and the air-fuel ratio monitoring system performance. 

This includes the quarterly emission checks; the biennial emission testing 

required for demonstration of emissions compliance; and the specific 

identification of each period of excess emissions that occurs during 

startups, shutdowns, and malfunctions of the engine or emission control 

system, the nature and cause of any malfunction (if known), and the 

corrective action taken or preventative measures adopted. Owners and 

operators are also required to maintain records on-site for a period of at 

least five years. 

Source owners or operators of affected units subject to the East Texas 

combustion rules in Subchapter E, Division 4 are required to conduct 

testing every two years or within 15,000 hours of engine operation after the 

previous emission test and perform quarterly emission checks to ensure 

continued compliance with the NOx emission specifications. Owners and 

operators are also required to maintain records on-site for a period of at 

least five years. These records also include information relating to catalytic 

converter, air-fuel ratio controller, or other emissions-related control 
system maintenance, including the date and nature of corrective actions 

taken. The commission considers the current quarterly emissions checks, 

periodic testing, recordkeeping, and reporting requirements for engines 

subject to the Chapter 117 requirements to be sufficient to ensure proper 

operation and maintenance of catalyst controls. No changes are made in 

response to this comment. 

Comment 

The EPA expressed support of the commission clearly identifying the sections that 

pertain to control of ammonia and CO emissions, which are not ozone precursors, and 

are therefore not necessary components of the Texas ozone SIP and are not intended for 

inclusion into the EPA-approved Texas SIP. The EPA also expressed support of the 

commission's inclusion of major sources of NOx located in Wise County to become 

subject to the requirements of Chapter 117. 

Response 

The commission appreciates the EPA's support of the NOx RACT 

rule making. No changes are made in response to this comment. 

Comment 

The EPA commented that it cannot approve the proposed compliance schedule, which 

states that upon publishing notice in the Texas Register that Wise County is no longer 

designated nonattainment for the 2008 eight-hour ozone NAAQS, the owner or 

operator of a unit in Wise County is not required to comply with the requirements of 

68 
Subchapter B, Division 4. The EPA indicated it cannot approve this provision because it 

does not contain "a replicable procedure" and to 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 necessary to 

change the applicability of RACT rules to Wise County in the event the 

nonattainment designation for Wise County is no longer legally effective. If 

the nonattainment designation is no longer legally effective, then there is 

no underlying legal basis or support for the RACT requirement to apply to 

Wise County. The inclusion of Wise County in the DFW nonattainment area 

is currently in litigation, awaiting a decision from the D.C. Circuit. A final 

decision from the court that vacates the nonattainment designation for 

Wise County would mean that the EPA would no longer have the authority 

to require or enforce RACT requirements in an area that is not legally 

designated nonattainment. 

Only in the absence of a legally valid nonattainment designation would the 

commission be able to act under this rule provision and such action would 

merely provide notice that Wise County would no longer be legally required 

to comply with provisions that are no longer legally valid. Further action 

from the EPA would not be required if a final court decision vacates the 

nonattainment designation of Wise County; therefore, no FCAA, §no(l) 

69 
demonstration could be required to remove a requirement that would no 

longer be legally required. Furthermore, the 2018 future-year attainment 

demonstration modeling docun1ented in the 2015 DFW Attainment 

Demonstration SIP (2013-015-SIP-NR) proposal being adopted 

concurrently with this rulemaking does not include NOx reductions from 

any of the RACT rules proposed for Wise County. Since no emissions 

reductions from this rulemaking were included in the 2018 future case 

modeling for Wise County, cessation of the compliance obligations for NOx 

sources in Wise County would not affect the attainment demonstration 

modeling. 

To ensure that the rule language clearly establishes this standard, the 

commission is replacing the proposed 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 §117.9130(e) with 

"the Wise County nonattainment designation for the 2008 Eight-Hour 

Ozone National Ambient Air Quality Standard is no longer legally effective." 

Comment 

Luminant expressed support of the 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 that the 

proposed clarification is the best interpretation of the rules, Luminant favored the 

proposed changes that would provide regulatory consistency and clarification regarding 

70 
the specific requirements of the appropriate calculation methodology. 

Response 

The commission appreciates Luminant's support of the NOx RACT 

rule making. No changes are made in response to this comment. 

Comment 

Solar and the TP A suggested that the 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 and the TP A commented that the proposed emission values are stricter than 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 of meeting. 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 rated less 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 in Wise County will require up rating to a higher power rating 

and retrofitting with dry low-NOx technology; this vdll impose significant capital costs. 

For these two units, Solar commented the results of the uprate and retrofit will 

potentially require corresponding compressor or other equipment upgrading, 

71 
replacement, or modification; may trigger additional new source review permitting 

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 in Wise County to meet the proposed NOx emission specifications. Solar and 

the TP A estimated the compliance cost to be as high as $2 million to $4 million for each 

of the four affected Solar industrial turbines to comply with the RACT rulemaking. One 

TPA member determined that two industrial gas-fired turbines from its fleet would 

require retrofit technology estimated to cost between $1.5 million to $4 million per 

turbine. The TP A member estimated the cost per ton for emissions reductions to be 

$38,800. The TPA contended this would approach a complete source replacement, 

contrary to RACT requirements. Solar contended that a source-specific RACT cost 

estimate is imperative to assess the cost-effectiveness of the proposed RACT rulemaking 

on each affected unit in Wise County. Similarly, the TP A commented that consideration 

on a case-by-case basis of the specific technological and economic circumstances of an 

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 TP A 

endorsed and fully incorporated Solar's comments. 

Response 

While the commission may consider Federal rules such as 40 CFR Part 6o, 

Subpart KKKK when determining NOx RACT control levels, RACT is not 

72 
defined by rules such as the NSPS. The referenced NSPS rules are national 

rules, whereas the NOx RACT rules that the commission is adopting for the 

DFW 2008 eight-hour ozone nonattainment area are specific to the 

facilities in that area. Furthermore, RACT requirements can be, and are in 

some circumstances, more stringent than NSPS or National Emission 

Standards for Hazardous Air Pollutants rules. The commission declines to 

make the suggested change to create an exemption threshold based on unit 

size. However, based on supplemental data and information provided by, 

and comments received from, owners or operators of these units in Wise 

County, the commission has determined that some of the affected turbines 

in Wise County in the proposed mid-size category, 4,500 hp and greater but 

less than 10,000 hp, may not be able to meet the proposed 0.20 lb/MMBtu 

NOx emission specification without making significant modifications or 

retrofits at substantial costs. The commission determined at proposal that 

these costs did not represent RACT for these turbines in Wise County. The 

commission's proposed emission standards were based on existing 

emissions data for the units, but the commission's assessment of the 

ongoing emissions performance based on this data for the midsize category 

of turbines may have been too conservative. This resulted in the emissions 

standard being lower than what would be consistent with the commission's 

determination of RACT for industrial turbines in Wise County. 

Furthermore, additional information was provided by the TP A, and stack 

test data was provided by an affected source owner or operator for specific 

units identified in Wise County, which supplemented and clarified the 2012 

73 
EI data, upon which the commission proposed the NOx RACT standards for 

industrial turbines in Wise County. The additional information and data 

indicated unit performance variability among the various turbine model 

ratings and showed test results as high as 0.50 lb/MMBtu. 

Therefore, the commission is removing the unit size category for units with 

a hp rating of less than 4,500 hp and the unit size category for units with a 

hp rating of 4,500 hp or greater but less than 10,000 hp. The commission is 

replacing these two unit size categories with a unit size category for units 

with a hp rating of less than 10,000 hp. Furthermore, the commission 

adopts a NOx emission limit of 0.55 lb/MMBtu for turbines rated less than 

10,000 hp. Based on the supplemental information provided by source 

owners or operators of affected units and considering the variation in test 

data for some units, the commission determines that 0.55 lb/MMBtu for 

units rated less than 10,000 hp is an appropriate RACT control level 

considering current performance levels of existing units in Wise County. 

While this control level is numerically the same as the current NSPS rule 

for modified and reconstructed industrial gas turbines with a heat input 

less than or equal to 50 MMBtujhr, the commission makes dear that 0.55 

lb/MMBtu is the appropriate RACT level of control specifically for the units 

rated less than 10,000 hp identified in Wise County considering the specific 

factors associated with those units. This control level is also consistent with 

the commission's determination of RACT for industrial turbines in Wise 

County made at proposal. Furthermore, based on unit specific information, 

74 
the commission expects that no NOx control technology retrofits will be 

necessary to comply with the RACT rule requirements for any of the 

affected industrial combustion turbines in Wise County. Therefore, the 

commission expects no fiscal impacts associated with controls for units in 

Wise County to comply with the adopted RACT emission standards. Based 

on the revised NOx emission specifications, no affected sources are 

anticipated to undergo retrofits of any kind in order to meet the emission 

limits for industrial gas-fired turbines in Wise County. Due to public 

comment, the commission revises the unit power rating threshold of 4,500 

hp in proposed §117-405(b)(3)(A) to 10,000 hp. The commission also 

removes proposed §117.405 (b)(3)(B) and re-letters proposed subsection 

(b)(3)(C) to subsection (b)(3)(B). 

Comment 

Solar and the TPA opposed the January 1, 2017, compliance deadline and suggested a 

phased-in compliance schedule to allow industry the time to develop and implement 

technology upgrades necessary to comply with proposed RACT standards. 

Response 

An alternative compliance schedule, such as a phased-in compliance 

schedule suggested by the commenter, is unnecessary at this time, 

especially given that the affected Wise County turbines are not expected to 

require retrofits. Furthermore, the EPA's implementation rule for the 2008 

eight-hour ozone NAAQS specifies the January 1, 2017, date as the 

75 
compliance deadline for implementation of RACT requirements. The 

commission retains in the rule the compliance deadline of January 1, 2017, 

for affected units. 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 determined that six gas-fired richburn engines from its fleet, already controlled by catalyst, 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 o.so g/hp-hr. 

The member estimated $540,000 in total costs for the six engines. The member further 

estimated the cost per ton of NOx 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 emission limit of 0.50 gfhp-hr is not 

representative of RACT for gas-fired rich-burn engines. The commission 

estimated the total costs for NSCR catalyst retrofits for gas-fired rich-burn 

engines in Wise County based on some rich-burn engines needing entire 

catalyst system retrofits and some engines already equipped with catalyst 

systems only needing additional catalyst elements. The $30/hp estimate 

used by the commission for capital costs for new NSCR systems ((39 TexReg 

10351) December 26,2014, issue of the Texas Register) is an overall 
estimate, and capital costs for an individual engine may be higher than this 

estimate. The $90,000 capital cost estimate provided by the TPA would 

equate to approximately $54/hp. While higher than the commission's 

estimate, the commission still considers the TPA's cost estimate for NSCR 

on rich-burn engines to be economically feasible. The TPA's estimated costeffectiveness of $11,100 per ton appears to be based on only first-year 

capital costs and is not annualized. Capital costs associated with control 

requirements are typically annualized over a period of years when 

calculating cost-effectiveness on a dollar-per-ton basis. Calculating costeffectiveness based on the first-year capital costs and a single year of 

emission reductions inflates the dollar-per-ton estimate. The costeffectiveness estimate used by the commission in the RACT and fiscal 

analyses for this rulemaking included annual operating and maintenance 

costs and annualized capital costs over the first five years the rules are in 

effect. The first-year cost-effectiveness estimate by the TPA cannot be 

compared to the commission's cost-effectiveness estimates without being 

converted to the same basis. 

Furthermore, the TPA's cost-per-ton estimate of$11,100 is also based on a 

NOx reduction from 1.0 g/hp-hr to 0.50 g/hp-hr, when it should be from 2.0 

g/hp-hr to 0.50 gfhp-hr. Site-specific data of annual NOx emissions and 

operating hours reported to the 2012 EI indicate the 1,680 hp engine 

operated at a performance level of2.0 gjhp-hr. Based on the TPA's cost 

information of the conversion kit annualized over five years, the 

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commission estimates the cost per ton for the 1,680 hp engine to be $1,027. 

This figure includes the $90,000 capital cost for the conversion kit, a 

capital cost of $2,500 for one totalizing fuel flow meter, annual 

maintenance costs of $3,000 for catalyst washing and 02 or NOx sensor 

replacement, annual average costs of $2,525 for compliance testing, and an 

emission reduction of approximately 23.4 tpy. Annualizing this over five 

years, the commission notes that this estimate of $1,027 per ton for NSCR 

systems using the TPA capital costs is lower than the overall average of 

$1,563 per ton the commission cited for all affected units, including richburn engines, in the proposed rulemaking ((39 TexReg 10350) December 

26,2014, issue of the Texas Register). The commission maintains that the 

NOx emission specification of 0.50 g/hp-hr represents RACT for gas-fired 

rich-burn engines. No changes are made in response to this comment. 

Comment 

The TP A supported the source cap option and use of emission reduction credits as a 

compliance flexibility mechanism for sources in Wise County affected by the proposed 

RACT rules. The TP A 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 in Wise County, the TPA 

expressed support of the proposed NOx levels set at a higher level than existing levels 

for sources in the DFW nine-county ozone nonattainment area. The TPA stated support 

of the 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 of the NOx RACT 

rulemaking. No changes are made in response to these comments. 

Comment 

One individual commented the public is doomed to suffer if its air is left to the TCEQ 

since those making money from dirty air seem to have bought everyone with power to 

do something to clean up the air, and no TCEQ board member was present at the public 

hearing. 

Response 

The purpose of this Chapter 117 rulemaking is to meet FCAA NOx RACT 

requirements for the DFW area. This comment is outside the scope of this 

rulemaking. Additional discussion in response to this comment is provided 

in the 2015 DFW Attainment Demonstration SIP Revision (Non-Rule 

Project No. 2013-015-SIP-NR) being adopted concurrent with this 

rule making. No changes are made to this rule making in response to this 

comment. 

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