### Kathleen Hartnett \Nhite, 

### Chairman Larry R. Soward, 

### Commissioner H. S. Buddy Garcia, 

### Commissioner Glenn Shankle, 

### ExecutiveDirector 

# TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas byReducing andPreventingPollution 

## August 16,2007 Docket No. 2006-2026-RUL

Richard E. Greene, Regional Administrator U.S. Environmental Protection Agency

- Region 6 1445 Ross Avenue Dallas, Texas 75202-2733 Dear Mayor Greene: On July 25, 2007, the Texas Commission on Enviromnental Quality (Commission) adopted revisions to the State ImplementationPlan (SIP). The Commission adopted amendments· to Sections 101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.-385 and the repeal of Section 101.22 of 30 TAC

. Chapter 101, General Air Quality Rules, and corresponding·revisions to the SIP. The adoption corrects

references tosections of30 TAC Chapter 117, Control of Air Pollution from Nitrogen Compounds, which have changed due to the reorganization of Chapter 117, revises definitions, removes an obsolete effective date, and correCts references to the commission. Enclosed are the proposed revisions to the SIP, a public hearing certification, a complete record ofthe public hearing, and the accompanying order. I look forward to your expeditious approval ofthese SIP revisions. Sincerely, 

# rV**d1~lJ,** r)**'----""~athleen** HartnettWhite I 

## Chairman 

## KHW/rls Enclosures

P.O. Box 13087- Austin, Texas 78711-3087

- 512-239-1000

- Internet address: www.tceq.state.tx.us printed on recycled pi:lper using**soy~based** ink

## TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

August 16, 2007

Docket No. 2006-2026-RUL



## THE STATE OF TEXAS COUNTY OF TRAVIS

This is to certify that the attached are true and correct copies ofdocuments for revisions to the Texas State Implementation Plan, adopted on July 25, 2007, 

## pursuantto 40 

## Code ofFederal Regulations § 51.104. 

## I
am the records administrator for the General Law Division of the Texas Commission on Environmental Quality (Commission).

Richard Hyde Director, Air Permits Division Texas Commissionon Environmental Quality

### Texas Commission on Environmental Quality Public Hearing March 20, 2007 30 TAC Chapter 101 General Air Quality Rules Rule Project No. 2006-053-101-PR

## INTRODUCTION
The Texas Commission on Environmental Quality (commission) held apublic hearing in Austin on March 20, 2007 to receive testimonyregarding revisions to 30 TAC Chapter 101, General Air QualityRules; and corresponding revisions to the Texas state implementationplan (SIP).
The amendments to §§101.1, 101.302,101.306,101.350,101.351,101.353,101.354, 101.360,101.372, 101.376, 101.383, and 101.385 and the repeal of§101.22 would correctreferences to sections of30 TAC Chapter 117, Control ofAirPollution from Nitrogen Compounds, which have changed due to the reorganization ofChapter 117. This rulemaking would also include revisions identified during the lastreview ofChapter 101 including changes to the definitions ofcold solvent cleaning, conveyorized degreasing, high-volume, low-pressure spray guns, open-top vapor degreasing, standard conditions, and visible emissions. A definition for nitrogen oxides would be added, the definitions ofhazardous waste management facility and hazardous waste management unit would be deleted, and an obsolete effective date section would be removed.
The commentperiod closed on March 26, 2007. All testimony and comments have been reviewed and seriouslyconsidered.

• Public Notification and Proposal

• Written and Oral Testimony

• Evaluation ofTestimony

• StaffRecommendations
Additional copies ofthis hearing record are maintained in the TCEQ central office at 12100 Park 35 Circle, Austin, Texas 78753. For further information, contactBecky Southard at (512) 239-1638.

# PUBLIC NOTIFICATION AND PROPOSAL

## PUBLIC NOTIFICATION



## Notification to the pUblic of the proposed revisions was conducted by the following procedures:

1. Publication of the notice of public hearing in the following newspapers on the dotes listed: Austin American-Statesman Fort Worth Star-Telegram Houston Chronicle February 12, 2007 

## February 12, 2007 

## February 12, 2007



## 2. Publication of the pUblic hearing notice in the 

## Texas Registeron February 23,2007 (32 

## TexReg 966).

3. 

## Publication of the proposed rules in the 

## Texas Registeron February 23, 2007 (32 

## TexReg 713).



## 4. 

## Correspondence forwarding the notice of public hearing to the following officials and agencies:
Speaker of the House Lieutenant Governor City of EI Paso City of Victoria Planning Department

## Dallas Department of Health and Human Services EI Paso City-County Health District Federal Highway Administration Fort Worth Public Health Department Galveston County Health District Houston Department of Health and Human Services Harris County Pollution Control Department North Central Texas Council of Governments Houston-Galveston Area Council South East Texas Regional Planning Commission Texas Department of Transportation Texas Transportation Institute Arkansas Department of Pollution Control and Ecology Louisiana Department of Environmental Quality New Mexico Air Quality Bureau Oklahoma Department of Environmental Quality 

# u. S. Environmental Protection Agency

## EXAMPLE OF NEWSPAPER CLASSiFIED AD Fort Worth Star-Telegram 

## February 12, 2007

Ad Copy: NOTICE OF PUBLIC

HEARING BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY ON PROPOSED REVISIONS TO 30 TAC CHAPTER 101 AND TO THE STATE IMPLEMENTATION PLAN Tile Texas Commis-

sion on Environmental

### ~i~\a'b~n~~~r-'~i~~igl?J hearing to receive teslimony regarding proposed reViSions 10 30 Texas Adminls- lralive Code (TACl ChajJler 101. Genera AIr Qualily Rules. and 10 the slale Imple- menlalion plan (SIP). under tile reqUire- ments 01 Texas Health and Salely Code. 1>382.017; Texas Government

. Code, CI1apter 2001. Sub### gJ6~er**o~; aF~de~~** 

### ;;n~~atl5',!;1,feJ!j,lldlg~ Environmenlal ProleclionAgency (EPA) regula110ns concerning SIPS. The

. proposed rulemakrng would correct re1erences 10 sections 01 30 TAC Chapler 1 17 which are chanqmg elue 10 lhe reorganization 01

### ~7~gl:~ing1,],~Ltlel~~g incllJ,qe reVisions idenllHeel during the l8.s1 review 01 Cnapler 101, including**ch~nges** 10 liltl defl- illll0ns 01 visible emissions. cold sol- vent . cleaning, Gonveyonzed degreeslng,

### gr:~~ilgg.**vaR{~h_vdo~~ ~r;~y** **~~kfress~~~a** s\anaard condilions. A definition 10r nilrogsn oXides would be addeel, the delinilions 01 hazardous waste managen1ent faclli1y and 118zardous waste management unit woulel be deleled. relerences 10 tile l111e 01 llle commIssion**v;,~dlldanb61)~~r~~ect~~** lective dale seclion would be ren1oved.

### ~~gg~~lle~\r%~nl~~I~**'r0\a:"~hSl'~6 T~8g~·** **"a~** 1 0'00 a.m: in Building B. Room 201 A. [II the Texas Comnlission 

### on EnVironmental QualJ1y

### ~~7W6e?:>arl~°'1~egjrcl~t Tl1e 118a"ng will be structured lor ll1e re- ceipt 01 oral Or wri1ten comnlsnts by interest- ed persons. Registra- I,on will begin 30 Illlnu.les prior ,to lhe Ilsanng. Individuals 1l1ay present oral statements wilen called upon In order 01 reg- istration. There will be no open diSCUSSion during the he.ari(lg- however

.**comlnt~Slori** slaff members Will be avaiJal)le 10 diSCUSS lhe prpposal 30 m)nUles**~nor** to Ille he"nng.

### a~~~~'I'f,e**R~~W~~ wl~g** **h~ve.** specu!1 commu- n1callOn Qr olher ac- commodation needs should contact Lola Brown. Office 01 Leqal Services. al (512) 239- 0348. Requesls should be made as 1ar in advance as possible. Comments may be sulJIYll11ed 10 Lola Drown, 'viC 205 Texas Register leam' OWce

### ¥~xasLe8~~mi~~6"~C;~~ EmMonmelltal Quality P.D. Box 13087, AUs: lin, Texas 78711-3087 or laxed 10 (512) 239· 4808. Electronic com-

### ~i'j\~~**a~~l;p:~e ~~:**  lceq .sI61e.IX. uslru lesl ecomments. The**~~~en~J:9~8o~IOS~** comments should ref- erence Rule Project Number 2006-053-101-

### ~l~Y**~~ ~i~~eg~u:,~~**  commiSSion's Web Bile al hllp/twww.tceq .s1a1e.1x.us/n av/rules

### {por?7u°rft;era~?gri;;~\jg~ or ques1ions concern- Ing Ihis proposal please COnlael Becl<y Sou1hard, Air Permi1s**~63~ion,** a1 (512) 239- Issued in Austin Texas 011 February 7.' 2007

..Operational Requirements No. I. y failing to ensure that the oxidation ditch treatment unit was pro edy operated and maintained; 30 TAC §305.125(l) and (5) and T ES Permit No. WQ00115I0002, Operational Requirements No. I by failing to ensure that the return lines from the digesterand sludg drying beds were properly operated and maintained; 30 TAC §30 .125(1). and TWC, §26.l21(a)(l), and TPDES Permit No. WQO 11510002, Effluent Limitations and Monitoring Requirements No. ,by failing to prevent the discharge offloating solids or visible foa in other than trace amounts in the receiving stream; and 30 TAC §21.4 and §290.51 (a)(3) and TWC, §5.702 and §26.0291, by failin to pay all outstanding consolidated waterquality fees and public he th service fees; PENALTY: $16,385; Supplemental Environmental PI' 0ect (SEP) offset amount of$16,385 contribution to be used in the exas Association ofResource Conservation and Development Are s, Inc., Abandoned Tire Clean-Up Project which provides the coor inated clean-up ofsites where tires have been disposed ofillegally; TAFF ATTORNEY: James Biggins, LitigationDivision, MCR-12, (71 ) 422-8916; REGIONAL OFFICE: Harlingen Regional Office, 1804 West Jefferson Avenue, Harlingen, Texas 78550-5247, (956) 425-601
. (7) COMPANY: The Texas L in American Conference of the International Pentecostal Holine s Church; DOCKET NUMBER: 2005-1708-PWS-E; TCEQ ID MBER: RNI01218493; LOCATION: six miles west ofJackson ille, south ofUnited States (US) 79, Cherokee County, Texas; T 

### :E OF FACILITY: public water supply system; RULES VIOLAT D: 30 TAC §290.109(c)(2)(A)(i) and §290.122(c)(2)(B), and THSC §341.033(d), by failing to collect and submit a routine monthly bact riological sample, and, by failing to notify the public ofthe noncom iance during the month ofAugust 2003; 30TAC §290.109(c)(3)(A)(ii and §290.122(c)(2)(B), by failing to take four repeat samples for ea h total coliform-positive sample found in a month and by failing to otify the public ofthese noncompliances during the months ofMar h, May, and June 2004; 30 TAC §290.J09(c)(2)(F) and §290.122(c) )(B), by failing to collect at least five routine bacteriological sample following the month in which a positive coliform sample was obta ed and by failing to post public notice during the month ofApril 004; and 30 TAC §290.1 09(f)(3) and §290.l22(c)(2)(B) and THSC, 341.0315(c), by failing to comply with the maximum contaminantlev I(MCL) for coliform bacteria and by failing to notifythepublic ofthi noncomplianceduring themonths ofMay andJune 2004; PENALTY $2,363; STAFFATTORNEY: Kari Gilbreth, Litigation Division. MC 175, (512) 239-1320; REGIONAL OFFICE: Tyler Regional Office, 2916 Teague Drive, Tyler, Texas 75701-3756, (903) 535-5100. (8) COMPANY: Wallach Con rete, Inc; DOCKET NUMBER: 2005-0586-AIR-E; TCEQ ID NUMBERS: RNI04452560 and RN 104452404; LOCATION: 6 2 Southeast Avenue F, Seminole, Gaines County, (the SeminolePIa t), and 160I WestBroadway Street, Andrews, Andrews County, Tex s (the Andrews Plant); TYPE OF FACILITY: concrete batch pia s; RULES VIOLATED: 30 TAC §116.110(a), and THSC, §382. 5(b) and §382.0518(a), by failing to obtain the proper authorizatio prior to construction and operation oftwo concrete batch plants; P NALTY: $20,000; STAFF ATTORNEY: Lena Roberts, Litigation ivision, MC 175, (512) 239-0019; REGIONAL OFFICE: Midland egional Office, 3300 North A Street, Building 4, Suite 107, Midland, xas 79705-5404, (915) 570-1359. TRD-200700444 Mary Risner Director, Litigation Division Texas Commission on Environmen al Quality Filed: February 13, 2007



## 32 TexReg 966 

## Februaryl 23, 

## 2007 Texas Register Notice ofPublic Hearing on Proposed Revisions to 30 TAC Chapter 

### !OJ and to the State Implementation Plan The Texas Commission on Environmental Quality (commission) will conduct a public hearing to receive testimony regarding proposed revisions to 30 Texas Administrative Code (TAC) Chapter 10I, General Air Quality Rules, and to the state implementation plan (SIP), under the requirements ofTexas Health and Safety Code, §382.0 17; Texas Government Code. Chapter 2001, Subchapter B; and 40 Code ofFederal Regulations §51.1 02 ofthe United States Environmental Protection Agency (EPA) regulations concerning SIPs. The proposed rulemaking would correct references to sections of30 TAC Chapter 117 which are changing due to the reorganization of Chapter 117. This rulemaking would also include revisions identified during the last review ofChapter 101, including changes to the definitions ofvisible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. A definition for nitrogen oxides would be added, the definitions ofhazardous waste management facility and hazardous waste management unit would be deleted, references to the title ofthe commission would be corrected, and an obsolete effective date section would be removed. A public hearing on this proposal will be held in Austin, Texas, on March20, 2007, at 10:00 a.m., in BuildingB, Room 201A, atthe Texas Commission onEnvironmental Quality complex located at 12100Park 35 Circle. The hearing will be structured for the receiptoforal orwritten comments by interested persons. Registration will begin 30 minutespriorto thehearing. Individuals maypresent oral statements when called upon in order ofregistration. There will be no open discussion during the hearing; however, commission staffmembers will be available to discuss the proposal 30 minutes priorto the hearing. Persons planning to attend the hearing, who have special communication orotheraccommodationneeds, should contact LolaBrown, Office ofLegal Services, at (512) 239-0348. Requests should be made as far in advance as possible. Comments may be submitted to LolaBrown, MC 205. Texas Register Team, Office of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. Electronic comments may be submitted at hllp://www5.tceq.stale.tx.lIs/rlilesiecomments. The comment period closes March 26, 2007. All comments should reference Rule Project Number 2006-053-10I-PR. The proposed rules may be viewed on the commission's Web site at http://wwvdceq.state.tx.lIs/navlrules/propose adopt.html. For further information or questions concerning this proposal, please contact Becky Southard, Air Pennits Division, at (512) 239-1638. TRD-200700378 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Filed: February 9, 2007

Notice ofPublic Meeting 0 March 29,2007, in Orange, Texas, Concerning the Spe or Salvage Yard Proposed State Superfund Site. The purpose ofthe meeting is 0 obtain public input and information concerning the proposed reme y for the site. The executive director of the exas Commission on Environmental Quality (TCEQ or commissiOl is issuing this public notice ofa pro-239-4808. Electronic comments may be submitted at http://www5.tceq.state.tx.us/ru/es/ecommentsl. All comments should reference Rule Project Number 2007-003-080-LS. The comment period closes March 26, 2007. Copies of the proposed rule can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/ru/es/propose_adopt.htm/. For further information, please contact Janis Hudson, Environmental Law Division, (512) 239-0466. STATUTORY AUTHORITY The amendment is proposed under Texas Water Code, §5.013, concerning General Jurisdiction ofthe commission, which establishes the commission's general authorityto carry out itsjurisdiction; §5.102, concerning the commission's Genera) Powers, including calling and holding hearings and issuing orders; §5.1 03, concerning Rules, which requires the commission to adopt rules when amending any agency statement of general applicability that describes the procedures or practice requirements of an agency; and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and §5.228, which establishesthe executive director's authorityto participate in contested case hearings. Additionally, the amendment is proposed under Texas Government Code, §2001.004, concerning Requirementto Adopt Rulesof Practice and Index Rules, Orders and Decisions, which requires state agencies to adopt rules of practice and procedure. The proposed amendment implements Texas Water Code, §5.228. 

### §80.108. Executive DirectorParty Status in PermitHearings. (a) Except to the extent superseded by subsection (b) ofthis section, the executive director shall not participate as a party in the following contested case hearings concerningpennitting matters: (I)

- (3) (No change.) (4) an application for a pennit for a municipal solid waste transfer facility under §330.7**[~]** ofthis title (relating to Pennit Required); (5) an application forapennitfortheprocessing ofgrit and grease trap waste under under §330.7**[~]** ofthis title; (6)
- (7) (No change.) (b)

- (I) (No change.) 

### f!m Notwithstanding the requirements ofsubsections (a) and fELofthis section regarding executive directorparty participation, the executive directorshall

### participate**~rty** ifdirected to do so by the commission. This agency herebycertifies thatthe proposal has been reviewed by legal counsel and found to bewithin the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 2007. TRD-200700381 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Earliest possible date ofadoption: March 25, 2007 Forfurther information, please call: (512) 239-6087 

## CHAPTER 101. GENERAL AIR QUALITY RULES The Texas Commission on Environmental Quality (TCEQ or commission) proposes amendments to §§101.1, 101.23, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of §101.22. The amended sections and repeal will be submitted tothe United States Environmental Protection Agency (EPA) as revisions to the Texas State Implementation Plan (SIP). BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES The commission has proposed revisions toTitle 30 TexasAdministrative Code (30TAC) Chapter 117, Control ofAir Pollution from Nitrogen Compounds, as part of the SIP for the Houston-Galveston-Brazoria (HGB) and Dallas-Fort Worth (DFW) nonattainment areas. Underthose revisions, Chapter 117 would be reorganized. Chapter 101, General Air Quality Rules, contains references to sections of Chapter 117 which are changing due to the reorganization, requiring that the cited references in Chapter 101 also change. This proposal also includes revisions identified during the last review of Chapter 101, including changes to the definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. Other proposed changes would delete the definitions of hazardous waste management facility and hazardous waste management unit, add a definition for nitrogen oxides, update references to include the correct title of the commission, and remove an obsolete effective date section. SECTION BY SECTION DISCUSSION §101.1. Definitions. The commission proposes to modify the opening paragraph of this section to specify that the definitions in §101.1 apply to all air quality rules. The commission proposes to change the definitions of cold solvent cleaning, conveyorized degreasing, and open-top vapor degreasing by deleting the word "metal" so that the processes also applyto cleaning non-metal parts. The commission proposes to delete the definitions of hazardous waste managementfacility and hazardous waste management unit because they are not found in any of the air rules. The proposed revision tothe definition of high-volume low-pressure spray guns specifies that the operating pressure of this equipment is measured at the air cap because this provides the most accurate measurement. The commission proposes to add the definition from Chapter 117 of nitrogen oxides because this is a common term used throughout the commission's air quality rules. The commission proposes to delete the last sentence of the definition of standard conditions that reads: "Pollutant concentrations from an incinerator will be corrected to a condition of 50% excess airifthe incinerator is operating at greaterthan 50% excess air." The amount of air present in combustion is a variable and does not qualify as a standard condition. The commission proposes to change the second sentence of the definition ofvisible emissions to read: "The radiant energy from an open flame is not considered a visible emission under this definition." Radiant energy may manifest some visual effects but there is no air contaminant emitted. §101.22. Effective Date.



## PROPOSED RULES Febrltal]J

## 23,2007 32 TexReg 

## 713The commission proposes the repeal of this section because it is no longer required. §101.23. Alternate Emission Reduction ("Bubb/e") Po/icy. The commission proposes to replace references to Texas Air Control Board with Texas Commission on Environmental Quality (TCEQ). The commission proposes to replace the reference to "Regulations I, II, III, V, VII, and IX" with "Chapters 111, 112, 113,115, and 117." The reference to Chapter 119 was removed because this chapter has been repealed. The commission proposes to replace a reference to the obsolete term "board order" with "commission order." In the last sentence ofthe section, the commission proposes to replace "he" with "the executive director." §101.302. General Provisions. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.306. Emission Credit Use. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.350. Definitions The commission proposes replacing the definition of Houston/Galveston (HGA) ozone nonattainment area with Houston-Galveston-Brazoria (HGB) ozone nonattainment area because the name ofthe nonattainment area has changed. §101.351. Applicability. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.353. Allocation ofAllowances. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.354. Allowance Deductions. The commission proposes to repiace references to Chapter i i 7 section numbers with the newly renumbered Chapter 117 sections. §101.360. Level ofActivityCertification. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.372. General Provisions. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.376. Discrete Emission Credit Use. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.383. Genera/Provisions.



## 32 TexReg 714 

## February 23,2007 Texas Register The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.385. Recordkeeping and Reporting. The commission proposes to replace references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. The commission also proposes minor administrative changes to address conformity to: Texas Register requirements and other agency rules and guidelines. FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT Nina Chamness, Analyst, Strategic Planning and Assessment, determined that, for the first five-year period the proposed rules are in effect, no fiscal implications are anticipated forthe agency orotherunits ofstate or local governmentsas a result ofadministration orenforcementofthe proposed rules. The proposed rules are administrative in nature and will amend sections of Chapter 101 to coincide correctlywith proposed changes to Chapter 117. Fiscal implications pertaining to the proposed rules for Chapter 117 can be found in that rule package. The commission previously proposed a reorganization and revision of Chapter 117 as part ofthe SIP forthe HGB and DFW nonattainment areas. This proposed revision to Chapter 117 also requires revision of Chapter 101 so that cited references in the two chapters agree with one another. The proposed rule changes to Chapter 101 will also revise definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. The proposed rules will also delete the definitions of hazardous waste management facility and hazardous waste management unit, add a definition for nitrogen oxides, and make minor administrative changes to update obsolete information contained in the current rules. PUBLIC BENEFITS AND COSTS Ms. Chamness also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be a more correct set of general rules governing air emiSSions that allow the regulated community to comply with federal and state laws with greater ease and efficiency. The proposed rules will affect entities that must currently comply with regulations promulgated in Chapter 101. Businesses and individuals are not expected to experience any fiscal implications as a result ofthe proposed rules, which make administrative changes to Chapter 101 to coincide with proposed amendments to and reorganization of Chapter 117. SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT No adverse fiscal implications are anticipated for small or micro-businesses as a result ofthe proposed rules, which are administrative in nature. LOCAL EMPLOYMENT IMPACT STATEMENT The commission has reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.DRAFT REGULATORY IMPACTANALYSIS DETERMINATION The commission reviewed the proposed rulemaking in lightofthe regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that this proposal is not subject to §2001.0225 because it does not meet the definition of a major environmental rule as defined in that statute. A major environmental rule means a rule, the specific intent ofwhich 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, productivity, competition, jobs, the environment, or the public health and safety ofthe state or a sector ofthe state. Although the specific intent is to protectthe environment, these proposed amendments are mainly an administrative action only, to correct and update cross-references to Chapter 117, which is being reorganized, modify certain definitions, and make other procedural changes to Chapter 101. Chapter 117, Control ofAir Pollution from Nitrogen Compounds, is currently proposed for reorganization. Chapter 101, General Air Quality Rules, contains extensive references to sections of Chapter 117 that are changing because of the reorganization. The references contained in Chapter 101 must change accordingly. This proposal also includes revisions identified during the last review of Chapter 101 by the executive director and includes changes to the definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. Other proposed changes would delete the definitions of hazardous waste management facility and hazardous waste management unit, add a definition for nitrogen oxides, update references to the title of the commission, and remove an obsolete effective date section. The adopted rules will not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety ofthe state or a sector ofthe state. In addition, a draft regulatory impact analysis is not required because the rules do not meet any ofthe four applicability criteria for requiring a regulatory analysis of a major environmental rule as defined in the Texas Government Code. Section 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 ofthe federal government to implement astate and federal program; or 4) adopt a rule solely underthe general powers of the agency instead of under a specific state law. This rulemaking does not exceed a standard set by federal law, and the adopted requirements are consistent with applicable federal standards. In addition, this proposal does not exceed an express requirement of state law and is not adopted solely under the general powers ofthe agency, but is specifically authorized by the provisions cited in the STATUTORY AUTHORITY section ofthis preamble. Finally, this rulemaking does not exceed a requirement of a delegation agreement or contract to implement a state and federal program. The commission invites public comment on the draft regulatory impact analysis determination. TAKINGS IMPACT ASSESSMENT The commission evaluated this rulemaking action and performed an analysis of whether the adopted rules are subject to Texas Government Code, Chapter 2007. The primary purpose of the rulemaking is to update references to sections of Chapter 117, which is being reorganized, to modify certain definitions, and to make other procedural changes to Chapter 101. These amendments do not affect private property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence ofthe governmental action. Therefore, promulgation and enforcement ofthese proposed rules is neithera statutory nor a constitutional taking because they do not affect private real property. Therefore, these rules do not constitute a taking underTexas Government Code, Chapter 2007. CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM The commission reviewed the proposed rulemaking and found the proposal is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11 (b)(2), relating to rules subject to the Coastal Management Program, and will, therefore, require that goals and policies of the Texas Coastal Management Program (CMP) be considered during the rulemaking process. The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council and determined that the amendments are consistent with CMP goals and policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas (31 TAC §501.12(1 )). The proposed rules update references and definitions. No new sources of air contaminants will be authorized and the revisions will maintain the same level of emissions control as previous rules. The CMP policy applicable to this rulemaking action is the policythat the commission's rules comply with federal regUlations in 40 Code of Federal Regulations, to protect and enhance air quality in the coastal areas (31 TAC §501.14(q)). This rulemaking action complies with 40 Code of Federal Regulations Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirms that this rulemaking action is consistent with CMP goals and policies. Written comments on the consistency ofthis rulemaking may be submitted to the contact person at the address listed under the SUBMITIAL OF COMMENTS section ofthis preamble. EFFECTON SITES SUBJECTTO THE FEDERAL OPERATING PERMITS PROGRAM The amended sections are applicable requirements under the Federal Operating Permits Program, but no revisions to operating permits will be required. ANNOUNCEMENT OF HEARING The commission will hold a public hearing on this proposal in Austin on March 20, 2007, at 10:00 a.m. in Building B, Room 201A, at the commission's central office located at 12100 Park 35 Circle. The hearing is structured forthe receipt of oral orwritten comments by interested persons. Individuals may present oral statements when called upon in order of registration. There will be no open discussion during the hearing; however, commission staff members will be available to discuss the proposal 30 minutes before the hearing. Persons who have special communication orotheraccommodation needs who are planning to attend the hearing should contact Lola Brown, Office of Legal Services, at (512) 239-0348. Requests should be made as far in advance as possible.



## PROPOSED RULES FebrualJ 7

## 23, 2007 32 

## TexReg 715SUBMITIAL OF COMMENTS Comments may be submitted to Lola Brown, MC 205, Office of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. Electronic comments may be submitted at http://www5.tceq.state.tx.us/ru/es/ecommentsl. All comments should reference Rule Project Number 2006-053-1 01-PR. The comment period closes March 26, 2007. Copies of the proposed rules can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/ru/es/propose_adopt.htm/. For further information, please contact Becky Southard, Air Permits Division, at (512) 239-1638 or Tara Capobianco, Air Permits Division, at (512) 239-1117. 

## SUBCHAPTER A. GENERAL RULES 30 TAC §101.1, §101.23 STATUTORY AUTHORITY The amended sections are proposed under Texas Water Code, §5.103, concerning Rules, and §5.1 05, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.Q12, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The amended sections are also proposed under THSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.051 and §382.0518, concerning Permitting Authority ofCommission and Preconstruction Permit, that authorize the commission to issue preconstruction and operating air permits. The amended sections are also proposed under42 United States Code, §741 O(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, and 382.017; and Senate Bill 784, 79th Legislature, 2005. 

### §10

### 1.1. Definitions. Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules ofthe commission, the terms used by the commission have the meanings commonly ascribed to them in the field ofair pollution control. In addition to the terms that are defined by the TCAA, the following terms, when used in relation to air quality rules in this title [ehHJ*ef], have the following meanings, unless the context clearly indicates otherwise. (I) Account--For those sources required to be permitted under Chapter 122 ofthis title (relating to Federal Operating Permits Program), all sources thatareaggregated as asite. Forall othersources, any combination ofsources under common ownership or control and located on one or more contiguous properties, or properties contigu
## 32 TexReg 716 

## February 23,2007 Texas Register ous except for intervening roads, railroads, rights-of-way, waterways, or similar divisions. (2)

- (II) (No change.) (12) Cold solvent cleaning--A batch process that uses liquid solvent to remove soils from the surfaces of

### [metftl] parts or to dry thepartsbyspraying, brushing,flushing, and/orimmersionwhile maintaining the solventbelow its boiling point. Wipe cleaning (hand cleaning) is not included in this definition. (13)-(21) (No change.) (22) Conveyorizeddegreasing--A solventcleaningprocess that uses an automated parts handling system, typically a conveyor, to automatically provide a continuous supply of [il'letal] parts to be cleaned ordried using eithercold solvent or vaporized solvent. A conveyorized degreasing process is fully enclosed except for the conveyor inlet and exit portals. (23)-(41) (No change.) 

### ft42i HtmlreelfS WIls{e ffi!lnttgemeflt faeility-A+J conti-guellSlaOO,IDe+lIdtng s-tffic-iHfes; aprlffieflal'lGeS-; aRd etherimprovements en !-he taRd; used fef jffileessin-g-; 

### steRng, Of**~esi-ng** ef**ha'i"affiou~** Wffilte;- 'File teRn ffieHl6es a flUl*ieJy Of J.*Watcly ewned**hai':uffieu~** waste maoogement faei.ti.ty €flilSi.st.i.ng

### efjffileessi-ng, stemge, or disposal erera-Hen/H hazafdeus WIlstemanagemeRt units suc-h !IS one Of mere 

### SUffaeeimpooMmeffiS-; 

### J*le;r, incinemlOfS-;**l~oit** ers, aildtndustffiHfuma€es;includingeemefltk+lns-;tnjee!-ien we!h;**~aH** del'l'lewasteoontainmemea-vemtr;tand-treatmentfaeili+ies, Ofaeomffi-- flfr!-ien 

### efuntffi:1 ff'HjHaffiffi6US waste ffifrHftgemen\ u-ni+-A- taAdti-H; SlIrfaee irnrollfl6-mellt-; waste 

### pHe, aet!ef; indllstfial ft:tmaee.; tne-inemtof; eemefltlffifl.; ffi:jeetien welt; containef, dfum-; salt deme WIls{e ooRtatnmeffi eavem, OftaRe tfeatmentUR-i+; Ofany ethel' stfUoture, vessel; artruftenan<Je;- Ofethel' -imprevemeflt en 

## {ana lfSed te ffi!ll'lilg6**11iffilffieu~** WIlsteoj**[~]** Hazardous wastes--Any solid waste identified or listed as a hazardouswaste by the administratoroCtheUnited States Environmental Protection Agency under the federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Ac(, 42 United States Code, §§6901 et seq., as amended. [f#j} Heatset (used in off:,et lithogiaphic priiiting)-- Anyoperation whereheat is requiredto evaporate inkoil from theprinting ink, Hot air dryers are used to deliver the heat. 

## f±B**[~]** High-bake coatings--Coatings designed to cure at temperatures above 194 degrees Fahrenheit. [t4+)] High-volume Jow-pressure spray guns--Equipment used to apply coatings by means ofa spray gun that operates between 0.1 and 10.0pounds persquare inch gauge airpressure !1.1easureQ at the air cap. 

## 00 [f4&j]Incinerator--An enclosedcombustion apparatus and attachments that is used in the process ofburning wastes for the primary purpose ofreducing its volume and weight by removing the combustibles ofthe waste and is equipped with a flue for conducting products ofcombustion to the atmosphere. Any combustion device that bums 10% or more ofsolid waste on a total British thermal unit (Btu) heat inputbasis averaged over anyone-hourperiod is considered to be an incinerator. A combustion device without instrumentation or methodology to determine hourly flow rates ofsolid waste and burning 1.0% or more ofsolid waste on a total Btu heat input basis averaged annually is also considered to be an incinerator. An open-trench type (with closed ends) combustion unit may be considered an incineratorwhen approved by the executive director. Devices buming untreated wood scraps, waste wood, or sludge from the treatment ofwastewater from the process mills as a primary fuel for heat recovery are not included under this definition. Combustion devices permitted underthis title as combustion devices other than incinerators will not be considered incinerators for application ofany rule within this title provided they are installed and operated in compliance with the condition ofall applicable permits. {12) 

### [f491J Industrial boiler--A boiler located on the site ofa facility engaged in a manufacturing process where substances are transformed intonew products, including thecomponentparts ofproducts, by mechanical or chemical processes.**[~J** Industrial fumace--Cement kilns; lime kilns; aggregate kilns; phosphate kilns; cokeovens; blast furnaces; smelting, melting, or refining fumaces, including pyrometallurgical devices such as cupolas, reverberator furnaces, sintering machines, roasters, or foundry fumaces; titanium dioxide chloride process oxidation reactors; methane reforming fumaces; pulping recovery furnaces; combustion devices used in the recovery ofsulfur values from spent sulfuric acid; and other devices the commission may list. {12l**[~J** Industrial solid waste--Solid waste resulting from, or incidental to, any process ofindustry or manufacturing, or mining or agricultural operations, classified as follows. (A) Class 1industrial solidwasteorClass 1wasteis any industrial solid waste designated as Class 1 by the executive director as any industrial solid waste ormixture ofindustrial solid wastes that because ofits concentration orphysical or chemical characteristics is toxic, corrosive, flammable, a strong sensitizer or irritant, a generator ofsudden pressure by decomposition, heat, or other means, and may pose a substantial present or potential danger to human health or the environment when improperly processed, stored, transported, or otherwise managed, including hazardous industrial waste, as defined in §335.1 and §335.505 ofthis title (relating to Definitions and Class 1 Waste Determination). (B) Class 2industrial solidwaste is any individual solid wasteorcombinationofindustrial solidwastes that cannotbedescribed as Class I or Class 3, as defined in §335.506 ofthis title (relating to Class 2 Waste Determination). (C) Class 3 industrial solidwaste is any inertand essentially insoluble industrial solid waste, includingmaterials such as rock, brick, glass, dirt, and certainplastics and rubber, etc., that are not readily decomposable as defined in §335.507 ofthis title (relating to Class 3 Waste Determination). ill}**[~J** Intemalfloating cover--A coverorfloatingroof in a fixed rooftank that rests upon or is floated upon the liquid being contained, and is equippedwithaclosure seal orsealsto closethe space between the cover edge and tank shell. 

### llU**[~J** Lcak--Avolatile organic compound concentration greater than 10,000 parts per million by volume or the amount specified by applicable rule, whicheveris lower; orthe dripping orexuding ofprocess fluid based on sight, smell, or sound. ill}**[~J** Liquid fuel--A liquid combustible mixture, not derived from hazardous waste, with a hcating value ofat least 5,000 British thermal units per pound. 

## 012**[~J** Liquid-mounted seal--A primary seal mounted in continuous contact with the liquid between the tank wall and the floating roofaround the circumference ofthe tank.**[~]** Maintenance area--A geographic region ofthe state previously designated nonattainment underthcFederal CleanAir ActAmendments of1990and subsequently redesignatedto attainment subject to the requirement to develop a maintenance plan under 42 United States Code, §7505a. The following are the maintenance areas within the state: (A) Victoria Ozone Maintenance Area 60 (Federal Register (FR) 12453)

- Victoria County; and

. (B) Collin County Lead Maintenance Area (64 FR 55421)

- Portion of Collin County. Eastside: Starting at the intersection ofSouth Fifth Street and the fence line approximately 1,000 feet south ofthe Exide property line going north to the intersection of South Fifth Street and Eubanks Street; Northside: Proceeding west on Eubanks to the Burlington Railroad tracks; Westside: Along the Burlington Railroad tracks to the fence line approximately 1,000 feet south ofthe Exide property line; Southside: Fence line approximately 1,000 feet south ofthe Exide property line.**[~J** Maintenance plan--A revision to the applicable state implementation plan, meeting the requirements of42 United States Code, §7505a. 

### f222**[~J** Marine vessel--Any watercraft used, or capable ofbeing used, as a means oftransportation on water, and that is constructed or adapted to carry, or that carries, oil, gasoline, or other volatile organic liquid in bulk as a cargo or cargo residue. @**[~J** Mechanical shoeseal--A metal sheetthatis held vertically against the storage tank wall by springs or weighted levers and is connected bybraces to thefloating roof. A flexible coated fabric (envelope) spans the annular space between the metal sheet and the floating roof. 

### [f6GjJ Medical waste--Waste materials identified by the DepartmentofState Health Services as "special waste from health care-related facilities" and those waste materials commingled and discarded with special waste from health care-related facilities. 

## 022 [f6BJ Metropolitan Planning Organization--That organization designated as being responsible, together with the state, for conducting the continuing, cooperative, and comprehensive planning process under 23 United States Code (USC), § 134 and 49 USC, § 1607. 

### i2Q2**[~J** Mobile emissions reduction credit--The credit obtained from an enforceable, pemlanent, quantifiable, and surplus (to otherfederal and staterules) emissions reduction generatedby amobile source as set forth in Chapter 114, Subchapter 

### [.£ 

### &J F of this title ([relatittg te bew 

### .£m.i.ss.ioo Veltiele Fleet RetjtHremems 

## aooJ Vehicle' RetirementandMobileEmission Reduction Credits), and that has been banked in accordance with SubchapterH, Division I ofthis chapter. 

### i§l2 [f@jJ Motor vehicle--A self-propelled vehicle designed for transporting persons or property on a street or highway. 

### f..§l2 [(641J Motorvehicle fuel dispensing facility--Any site wheregasoline is dispensed to motorvehicle fuel tanks from stationary storage tanks. f.§l2**[f6~J** Municipal solid waste--Solid waste resulting from, or incidental to, municipal, community, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and all other solid waste except industrial solid waste. 

### iQ12 

### [f66:lJ Municipal solid waste facility--AIJ contiguous land, structures, other appurtenances, and improvements 011 the land uscd forprocessing, storing. ordisposing ofsolid waste. A facility may be publicly orprivately owned and may consist ofseveral processing, storage, or disposal operational units, e.g., one or more landfills, surface impoundments, orcombinations ofthem.


## PROPOSED RULES FebrualJ'23,2007 32 

## TexReg 717(ii1J [f6+1] Municipal solid waste landfill--A discrete area ofland or an excavation that receives household waste and that is not a land application unit, surface impoundment, injection well, or waste pile, as those terms are defined under 40 Code ofFederal Regulations §257.2. A municipal solid waste landfill (MSWLF) unit also may receive othertypes ofResource Conservation and Recovery Act Subtitle D wastes, such as commercial solid waste, nonhazardous sludge, conditionally exempt small-quantity generator waste, and industrial solid waste. Such a landfill may bepubliclyorprivatelyowned. An MSWLF unit may be a new MSWLF unit, an existing MSWLF unit, or a lateral expansion. (§Q2 [f6&:j] National ambient air quality standard--Those standards established under 42 United States Code, §7409, including standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhalable particulate matter. and sulfur dioxide. (§2) [f69i] Net ground-level concentration--The concentration of an air contaminant as measured at or beyond the property boundary minus the representative concentration flowing onto a property as measured at any point. Where there is no expected influence of the aircontaminantflowing onto a property from othersources, the net ground level concentration may be determined by a measurement at or beyond the property boundary. 

### UJ§J [f7O-J] New source--Any stationary source, the construction or modification of which was commenced after March 5, 1972. {@} Nitrogen oxides (NOJ--The sum of the nitric oxide and nitrogen dioxide in the flue gas or emission point, collectively ex-**~sed** as nitrogen dioxide. 

### QQ2 [f+I-1] Nonattainment area--A defined region within the state that is designated by the United States Environmental Protcction Agency (EPA) as failing to meet the national ambient air quality standard for a pollutant for which a standard exists. The EPA will designate the area as nonaUainment**unde~** the provisions of42 United States Code, §7407(d). For the official list and boundaries ofnonattainment areas, sec 40 Code ofFederal Regulations Part 81 and pertinent FederalRegister(FR) notices. The following areas comprise the nonattainment areas within the state forall national ambient airquality standards (NAAQS). EPA has indicatedthat itwill revoke the one-hour ozone standard in full, including the associated designations and classifications, on June! 5, 2005, which is oneyear following the effective date ofthe designations for the eight-hourNAAQS ofJune 15,2004. (A) Carbon monoxide (CO). El Paso CO nonaltainment area (56 FR 56694)--Classified as a Moderate CO nonattainment area with a design value less than orequal to 12.7 parts per million. Portion ofEI Paso County. Portion ofthe city limits ofEI Paso: Thatportion of the City ofEl Paso bounded on the north by Highway 10 from Porfirio Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to the Southern Pacific Railroad lines, the Southern Pacific Railroad lines from Raynolds Street to Highway 62, Highway 62 from the Southern Pacific Railroad lines to Highway 20, and Highway 20 from Highway 62 to Polo Inn Road. Bounded on the east by Polo Inn Road from Highway 20 to the Texas-Mexico border. Bounded on the south by the Texas-Mexico border from Polo Inn Road to Porfirio Diaz Street. Bounded on the west by Porfirio Diaz Street from the Texas-Mexico border to Highway 10. (B) Inhalable particulate malter (PM,.). EI Paso PM" nonaltainment area (56 FR 56694)--Classified as a Moderate PM" nonaltainment area. Portion ofE1 Paso County that comprises the E1 Paso city limit boundaries as they existed on November 15, 1990. (C) Lead. No designated nonaltainment areas.


## 32 TexReg 718 

## February 23,2007 Texas Register (D) Nitrogen dioxide. No designatednonaltainmentareas. (E) Ozone (one-hour). (i) Houston-Galveston-Brazoria (HGB) one-hour ozone nonattainment area (56 FR 56694)

- Classified as a Severe-17 ozone nonattainment area. Consists of Brazoria, Chambers, ForI Bend, Galveston, Harris, Liberty, Montgomery. and Waller Counties. (ii) E1 Paso one-hour ozone nonaltainment area (56 FR 56694)

- Classifiedas aSerious ozonenonattainmentarea. Consists ofEl Paso County. (iii) Beaumont-Port Arthur (BPA) one-hollr ozonc nonattainmenl area (69 FR 1(483)

- Classified as a Serious ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties. (iv) Dallas-Fort Worth one-hour ozone nonattainment area (63 FR 8128)

- Classified as a Serious ozone nonattainment area. Consists ofCollin, Dallas, Denton, and Tarrant Counties. (F) Ozone (eighl-hour). (i) HGB eight-hour ozone nonattaiIll11l:n! area (69 FR 23936)

- Classifiedas a Moderate ozone nonattainment area. Consists of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties. (ii) BPA eight-hour ozone nonattainment area (69 FR 23936)

- Classified as a Marginal ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties. (iii) Dallas-Fort Worth eight-hour ozone nonattainment area (69 FR 23936)

- Classified as a Moderate ozone nonattainment area. Consists ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties. (iv) San Antonio eight-hour ozone nonattainment area (69 FR 23936)

- Classified under the Federal Clean AirAct, Title I, Part D, Subpart I (42 United States Code, §7502), nonattainment deferred to September30, 2005, or as extended by EPA. (G) Sulfurdioxide. No designated nonattainmentareas. 

### Qll [f-+2j] Non-reportable emissions event--Any emissions eventthatin any 24-hourperioddoes notresult in an unauthorized emission from any emissions point equal to or in excess of the reportable quantity as defined in this section. @ 

### rf-H1] Opacity--The degree to which an emission of air contaminants obstructs the transmission oflight expressed as the percentage oflight obstructed as measured by an optical instrumentor trained observer. 

### Ql) 

### [f-747] Open-top vapor degreasing--A batch solvent cleaning process that is open to the air and that uses boiling solvent to create solvent vapor used to clean or dry 

### [meta-l] parts through condensation ofthe hot solvent vapors on the colder metal parts. 

# .cw**[~]** Outdoorburning--Anyfire orsmoke-producing process that is not conducted in a combustion unit. @ [f76j] Particulate matter--Any material, except uncombined water, that exists as a solid or liquid in the atmosphere or in a gas stream at standard conditions. @ 

### [fHiJParticulatematteremissions--Allfinely-divided solid or liquid material, other than uncombined water, emitted to the ambient air as measured by United States Environmental Protection Agency Reference Method 5, as specified at 40 Code ofFederal Regulations (CFR) Part 60, Appendix A, modified to include particulatecaught by an impinger train; by an equivalent or alternative method, as specified at 40 CFR Part 51 ;orby a test method specified in an approved state implementation plan. (77) [(-18j] Petroleum retinery--Any facility engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils, lubricants, orother products through distillation ofcrude oil, or through the redistillation, cracking, extraction, reforming, or other processing ofunfinished petroleum derivatives. @} [p.9j] PM",--Particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers as measured by areference method based on40 Code ofFederal Regulations (CFR) Part 50, Appendix J, and designated in accordance with 40 CFR Part 53, or by an equivalent method designated with that Part 53. ill} [f8Gj] PM", emissions--Finely-divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal ten micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or alternative method specified in 40 Code ofFederal Regulations Part 51, or by a test method specified in an approved state implementation plan. 

### lliQ2 [f8-B] Polychlorinated biphenyl compound--A compound subject to 40 Code ofFederal Regulations Part 761. .@ll [f&B] Process orprocesses--Any action, operation, or treatment embracing chemical, commercial, industrial, or manufacturing factors such as combustion units, kilns, stills, dryers. roasters, and equipmentused inconnectiontherewith, and all othermethods orforms ofmanufacturing or processing that may emit smoke, particulate matter, gaseous matter, or visible emissions. [f&B] Process weight per hour--"Process weight" is the total weight ofall materials introduced orrecirculated into any specific process that may cause any discharge ofair contaminants into the atmosphere. Solid fuels charged into the process will be considered as partofthe process weight, but liquid and gaseous fuels andcombustion air will not. The "process weight per hour" will be derived by dividing the total process weight by the number ofhours in one complete operation from the beginning ofany given process to the completion thereof, excluding any time during that the equipment used to conduct the process is idle. For continuous operation, the "process weight per hour" will be derivedby dividing the total process weight for a 24-hour period by 24. @ll [f&4j] Property--All land under common control or ownership coupled with all improvements on such land, and all fixed or movable objects on such land, or any vessel on the waters ofthis state. [(-&&j] Reasonable further progress--Annual incremental reductions in emissions ofthe applicable air contaminant that are sufficient to provide for attainment of the applicable national ambient air quality standard in the designated nonattainment areas by the date required in the state implementation plan. [E&6j]Regulated entity--All regulated units, facilities, equipment, structures, or sources at one street address or location that areowned oroperated by the sameperson. The termincludes any property under common ownership or control identified in apennit orused in conjunction with the regulated activity at the same street address or location. Owners or operators ofpipelines, gathering lines, and flowlines under common ownership or control in a particular cOllnty may be treated as a single regulated entity for purposes ofassessment and regulation ofemissions events. {fui} [(-&11] Remote reservoir cold solvent cleaning--Any cold solvent cleaning operation in which liquid solvent is pumped to a sink-like work area that drains solvent back into an enclosed containerwhile parts are being cleaned, allowing no solvent to pool in the work area. . 

## ® [E&8-l] Reportable emissions event--Any emissions event that in any 24-hour period, results in an unauthorized emission from any emissions point equal to or in excess of the reportable quantity as defined in this section. 

### @**[~]** Reportable quantity (RQ)--Is as follows: (A) for individual air contaminant compounds and specifically listed mixtures by name or Chemical Abstracts Service (CAS) number, either: (i) the lowest ofthe quantities: (1) listed in 40 Code of Federal Regulations (CFR) Part 302, Table 302.4, the column "final RQ"; (II) listed in 40 CFR Part 355, Appendix A, the column "Reportable Quantity"; or (Ill) listed as follows: (-a-) acetaldehyde

- 1,000 pounds, except in the Houston-Galveston-Brazoria (HGB) and Beaumont-Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) [(71)(E)(i) aml 

### fHi1] ofthis section, where the RQ must be ]00 pounds; (-b-) butanes (any isomer)

- 5,000 pounds; (-c-) butenes (any isomer, except 1,3-butadiene)

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) [(7

### J)(E)(i) aml 

### fHi1] ofthis section, where the RQ must be 100 pounds; (-d-) carbon monoxide

- 5,000 pounds; (-e-) l-chloro-I, I-difluoroethane (HCFCI42b)

- 5,000 pounds; (-f-) chlorodifluoromethane (HCFC-22)

- 5,000 pounds; (-g-) l-chloro-l-fluoroethane (HCFC-151 a)

- 5,000 pounds; (-h-) chlorofluoromethane (HCFC-31) 5,000 pounds; (-i-) chloropentafluoroethane (CFC-I ]5)

- 5,000 pounds; (-j-) 2-chloro-l.l,I,2-tetrafluoroethane (HCFC-124)

- 5,000 pounds; (-k-) I-chloro-l, I,2,2 tetrafluoroethane (HCFC-124a)

- 5,000 pounds; (-1-) 1,1, 1,2,3,4,4,5,5,5-decafluoropentane (HFC 43-1 Omee)

- 5,000 pounds; (-m-) decanes (any isomer)

- 5,000 pounds; (-n-) I, I-dichloro-l-fluoroethane (HCFC141b)

- 5,000 pounds; (-0-) 3,3-dichloro-l,I,2,2-pentafluoropropane (HCFC-225ca)

- 5,000 pounds; (-p-) I,3-dichloro-l,I,2,2,3-pentafluoropropane (HCFC-225cb)

- 5,000 pounds; (-q-) I,2-dichloro-l, 1,2,2-tetrafluoroethane (CFR-114)

- 5,000 pounds; (-r-) I,] [;]- dichlorotetrafluoroethane (CFC-I14a)

- 5,000 pounds; (-s-) I,2-dichloro-] , I,2-trifluoroethane (HCFC-123a)

- 5,000 pounds; (-t-) I,I-difluoroethane (HFC-152a)

- 5,000 pounds; (-u-) difluoromethane (HFC-32)

- 5,000 pounds;


## PROPOSED RULES FebruQI)' 23,2007 32 

## TexReg 719(-v-) cthanol

- 5,000 pounds; (-w-) ethylene

- 5,000 pounds, except in the HGB and BPA ozone nonatlainment areas as defined in paragraph (70)(E)(i) and (iii) 

### [f1ljtr:"iti1 HflEi 

### fi-i-B] 01' this section, where the RQ must be 100 pounds; (70)(E)(i) and (iii)**[~aOO** ft-iij] 01' this section, whcre the RQ must be 100 pounds; (ii) ifnot listed in clausc (i) of this subparagraph, 100 pounds;

(-tt-) I, I,I,2-tctrafluoroethane (HFC-134a)

- (-qq-) J , 1,2.2-terachlorodiftuorocthane (CFR

5,000 pounds; -I 12)

- 5,000 pounds; (C) for opacity from boilers andcombustion turbines as defined in this section fueled by natural gas, coal, lignite, wood, fuel oil containing hazardous air pollutants at a concentration of less than 0,02% by weight, opacity that is equal to orexceeds 15 additional percentage points above the applicable limit, averaged over a six-minute period, Opacity is the only RQ applicable to boilcrs and combustion turbines described in this paragraph; or (D) for facilities where aircontaminant compounds arc measured directly by a continuous emission monitoring system providing updated readings at a minimum 15-minute interval an amount, approved by ine cxecutive director based on any relevant conditions and a scrcening model, that would be reported prior to ground levcl concentrations reaching at any distance beyond the closest regulated entity property line: (i) less than onc-halfofany applicahlc amhicnt air (B) for mixtures ofair contaminant compounds: (i) where the relative amount ofindividual air contaminant compounds is known through common process knowledgc or prior engineering analysis or testing, any amount 01' an individual air contaminant compound that equals or exceeds the amount specificd in subparagraph (A) ofthis paragraph; (ii) where the relative amount 01'individual aircontaminant compounds in subparagraph (A)(i) of this paragraph is not known, any amount ofthc mixture that cquals or cxcecds thc amount I'or any single air contaminant compound that is present inthc mixturc and listed in subparagraph (A)(i) ofthis paragraph; (iii) where cach of the individual air contaminant compounds listed in subparagraph (A)(i) ofthis paragraph arc known to bc less than 0.02°;', by weight ofthe mixture, andeachofthe otherindividual air contaminant compounds covercd by subparagraph (A)(ii) ofthis paragraph arc known to be less than 2,0% by weight ol'thc mixture, any total amount ofthe mixture ofair contaminant compounds grcater than or equal to 5,000 pounds; or (iv) whcre natural gas excluding carbon dioxidc, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygcn or air emissions from crude oil are known to be in an amount grcatcr than or equal to 5,000 pounds or the associated hydrogen sulfldc and mcrcaptans in a total amount greater than 100 pounds, whichcver occurs first;

standards; and (ii) less than two times the concentration ofapplicable air emission limitations,(HFCI ,j, I ,2,3,3,3-hcptalluoropropane

l, 

### 1, l,3,3-pentaOuorobutane pcntafluoroethanc (HFC-125)

- 5,000 (-y -) pounds; (HFC-227ea);

5,000 pounds; (-hh-) 365ml'c)

- 5,000 pounds; (-ii-) pounds; (-x-) ethylfluoride (HFC-161) 5,000

(-jj-) I, 1.2,2,3-pentafluoropropane (HFC245ca)

- 5,000 pounds;(-kk-) 1,I,2J,3-pcntafluoropropane (HFC245ca)

- 5,000 pounds;(-11-) I, 1,1 ,2,3-pentafluoropropane (HFC245eb)

- 5,000 pounds;(-mm-) 

### t, I, I,J,J-pentafluoropropane (HFC-245fa)

- 5,000 pounds; (-nn-) pentanes (any isomer)

- 5,000 pounds; (-00-) propane - 5,000 pounds; (-pp-) propylene

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defincd in paragraph (70)(E)(i) and (iii) 

### [f7l-1fL"iftlilAa fi-i-B] ofthis section, where thc RQ must be 100 pounds; (-rr-) l, I,I,2-tctrachlorodifluoroethanc (CFC-I 12a) -5,000 pounds; (-ss-) I, I,2,2-tetrafluoroethanc (HFC-134)
5,000 pounds; (-z-) I, I, I,J,3,3-hexafluoropropane (HFC236I'a)

- 5,000 pounds; (-aa-) 1,I,I,2,J,J-hexafluoropropane (HFC-236ea)

- 5,000 pounds; (-bb-) hexanes (any isomer)

- 5,000 pounds; (-ce-) isopropyl alcohol- 5,000 pounds; (-dd-) mineral spirits

- 5,000 pounds; (-ee-) octanes (any isomer)

- 5,000 pounds; (.ff'-) oxidcs 01' nitrQgen

- 200 pounds in ozonc nonattainmcnt, ozonc maintcnance, carly action compact arcas, Nueces County, and San Patricio County, and 5,000 pounds in all other arcas ofthe statc, which should be uscd instcad 01' thc RQs I'or nitrogen oxide and nitrogen dioxide providcd in 40 CFR !'art 302, Table 302.4, the column "final RQ"; (-gg-) pentachlorofluoroethane (CFR-II I)
-

(-uu-) I, I,2-trichloro-I,2,2-trifluoroethane (CFR-113)

- 5,000 pounds; (-vv-) I,J,J-trichloro- 2,2,2- trilfJoroethane (CFC-113a)

- 5,000 pounds; (-ww-) I, 1,l-trifluoro-2,2-dichloroethane (HCFC-123)

- 5,000 pounds; (-xx-) I, I, I-trifluoroethane (HFC-143a)

- 5,000 pounds; (-yy-) triftuoromethane (HFC-23)

- 5,000 pounds; or (-zz-) toluene

- 1,000 pounds, except in thc HGB and BPA ozone nonattainment areas as defined in paragraph 

### @22 [t9lB] Rubbish--Nonputrescible solid waste, consisting ofboth combustible and noncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, fumiture, rubber, plastics, yard trimmings, leaves, and similar materials, Noncombustible rubbish includes glass, crockery, tin cans, aluminum cans, metal furniture, and like materials that will not bum at ordinary incinerator temperatures (l,600 degrees Fahrenheit to 1,800 degrees Fahrenheit), {2Q) [t9-B] Scheduled maintenance, startup, or shutdown activity--For activities with unauthorized emissions that are expected to exceedareportablequantity (RQ), a scheduled maintenance, startup, or shutdown activity is an activity thatthe owneroroperatorofthereg
## 32 TexReg 720 February 23,2007 Texas Registerulated entity whether performing or otherwise affected by the activity, provides priornotice and afinal report as required by §I01.211 ofthis title (relaling to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements); the notice or final report includes the information required in §1OJ.2ll ofthis title; and the actual unauthorized emissions from the activity do not exceed the emissions estimates submitted in the initial notification by more than an RQ. For activities with unauthorized emissions that are not expected to, and do not, exceed an RQ, a scheduled maintenance, startup, or shutdown activity is one that is recorded as required by §I01.211 of this title. Expected excess opacity events as described in §101.201(e) ofthis title (relating to Emissions Event Reporting and Recordkeeping Requirements) resulting from scheduled maintenance, startup, or shutdown activities are those that provide priornotice (ifrequired), and are recorded and reported as required by §101.211 ofthis title. 

### f.2..!.2 [flP-1] Sludge--Any solid or semi-solid, or liquid waste generated from a municipal, commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive ofthe treated effluent from a wastewater treatment plant; or air pollution conlrol equipment. 

## f.212**f~]** Smoke--Small gas-bornparticlesresulting from incomplete combustion consisting predominately ofcarbon and other combustible material and present in sufficient quantity to be visible. 

### 0J12 [t'M1] Solid waste--Garbage, rubbish, refuse, sludge from a waste water treatment plant, water supply treatment plant, or air pollution control equipment, and other discarded material, including solid, liquid, semisolid, orcontainerized gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations and from community and institutional activities. The term does not include: (A) solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by pemlit issued under the Texas Water Code, Chapter 26; (B) soil, dirt, rock, sand, andothernatural orman-made inert solid materials used to fill land, ifthe object ofthe fill is to make the land suilable for the construction ofsurface improvements; or (C) waste materials that result from activities associated with the exploration, development, or production of oil or gas, or geothermal resources, and other substance ormaterial regulated by the Railroad Commission of Texas under Natural Resources Code, §91.l01, unless the waste, substance, ormaterial results from activities associated with gasoline plants, natural gas liquids processing plants, pressure maintenance plants, orrepressurizing plants and is hazardous waste as defined by the administrator of the United States Environmental Protection Agency underthe federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Act, as amended (42 United States Code, §§6901 el seq.). 

### f.2.12**[t9~]** Sourcrude--A crudeoil thatwill emit asourgas when in equilibrium at atmospheric pressure. 

## .l2ll**[~]** Sourgas--Any natural gas containingmorethan 1.5 grains ofhydrogen sulfideper 100cubicfeet, ormore than 30grains oftotal suifur per 100 cubic feet. f.2§2 [(lhg] Source--A point oforigin ofair contaminants, whether privately or publicly owned or operated. Upon request ofa source owner, the executive director shall determine whether multiple processes emitting air contaminants from a single point of emission will be treated as a single source or as multiple sources. 

## f.212 [f9-8j] Special waste from health care-related facilities--A solid waste that ifimproperly treated or handled, may serve to transmitinfectious disease(s) and that is comprised ofthe following: animal waste, bulk blood and blood products, microbiological waste, pathological waste, and sharps. 

## i.2.ID [(-991] Standard conditions--A condition at atemperature of68 degrees Fahrenheit (20 degrees Centigrade) and a pressure of 14.7 pounds persquare inch absolute (101.3 kiloPascals). fPollCilanl eeneentrations from atl incineratorwill be 

### eerFeC-tetl to tl eenffitten 

### ef**~O-% a~**  atf #'

### tfle 

### inetnerator is epemti-ng at greater titan**~O%** eli

### ees-s air.] 

### f.2..2.2 [f+{l\B] Standard metropolitan statistical area--An area consisting ofa county or one or more contiguous counties that is officially so designated by the United States Bureau ofthe Budget. (100) [(-1-{}+1] Submergedfill pipenA fill pipe that extends from the top ofatank to have amaximum clearance ofsix inches (15.2 centimeters) from the bottom or, when applied to a tank that is loaded from the side, that has a discharge opening entirely submerged when the pipe used to withdraw liquid from the tank can no longer withdraw liquid in normal operation. 

### QQl2**[~]** Sulfur compounds--All inorganic or organic chemicalshaving anatomoratoms ofsulfurintheirchemical structure. U@**[~]** Sulfuric acid mist/sulfuric acid--Emissions of sulfuric acid mist and sulfuric acid are considered to be the same air contaminantcalculated as H,S04 and must include sulfuric acid liquid mist, sulfur trioxide, and sulfuric acid vapor as measured by Test Method 8 in 40 Code ofFederal Regulations Part 60, Appendix A. 

### UQll [f-W41] Sweet crude oil and gas--Those crude petroleum hydrocarbons that are not "sour" as defined in this section. {I 04)**[~]** Total suspended particulate--Particulate matter as measured by the method described in 40 Code ofFederal Regulations Part 50, Appendix B. {!@**[~]** Transfer efficiency--The amount of coating solids depositedontothe surfaceorapart ofproductdivided by thetotal amount ofcoating solids delivered to the coating application syslem. 

### UQ§2**[~]** True vaporpressure--The absolute aggregate partial vaporpressure, measured in pounds per square inch absolute, of all volatile organic compounds atthe temperature ofstorage, handling, or processing. 

### UQ7l [f-I-QS1] Unauthorized emissions--Emissions of any air contaminant except carbon dioxide, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen that exceed any air emission limitation in a permit, rule, or order of the cOlmnission or as authorized by Texas Clean Air Act, §382.0518(g).**ill~** 

### [fUWt] Unplanned maintenance, startup, or shutdown activity--For activities with unauthorized emissions that are expected to exceed a reportable quantity or with excess opacity, an unplanned maintenance, startup, or shutdown activity is: (A) a startup or shutdown that was not part ofnonnal or routine facility operations, is unpredictable as to timing, and is not the type ofevent normally authorized by permit; or (B) a maintenance activity that arises from sudden and unforeseeable events beyond the control ofthe operator that requires the immediate corrective action to minimize or avoid an upset ormalfunction. 

### .liQ2l [fl-W)] Upset event--An [an] unplanned and unavoidable breakdown or excursion of a process or operation that



## PROPOSED RULES FebruUlJI 

## 23, 2007 

## 32 TexReg 721results in unauthorized emissions. A maintenance, startup, or shutdown activity that was reported under §J01.211 ofthis title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements), but had emissions that exceeded the reported amount by more than a reportable quantity due to an unplanned and unavoidable breakdown or excursion ofa process or operation is an upset event. QlQ) 

### [f-!-++l] Utility boiler--A boiler used to produce electric power, steam, or heated or cooled air, or other gases or fluids for sale. 

## UllJ**[f-H~J** Vapor combuslor--A partially enclosed combustion device used to destroy volatile organic compounds by smokeless combustion without extracting energy in the fonn ofprocess heat or steam. The combustion flame may be partially visible, but at no time does the device operate with an uncontrolled flame. Auxiliary fuel and/or a flame air control damping system that can operate at all times to control the air/fuel mixture to thecombustor'sflame zone, may be required to ensure smokeless combustion during operation. 

### (!lll [(-l-l-J-l] Vapor-mounted seal--A primary seal mounted so there is an annular space underneath the seal. The annular vapor space is bounded by the bottom ofthe primary seal, the tank wall, the liquid surface, and the floating roofor cover. 

## LUll [f-l--I-4iJ Vent--Any duct, stack, chimney, flue, conduit, or other device used to conduct air contaminants into the atmosphere. 

## LU±l [f-I-l-:BJ Visible emissions--Particulate or gaseous matter that can be detected by the human eye. The radiant energy from an open flame is not considered [ta

## eel a visible emission under this definition. LIJi) [(--I-l.(}j] Volatile organic compound--As defined in 40 Code ofFederal Regulations §51.100(s), except §51.100(s)(2)

- (4), as amended on November 29, 2004 (69 FR 69290). 

## LilB [(+1--+-j]Volatileorganic compound(VOC) waterseparator--Any tank, box, sump, or other container in which any VOC, floating on or contained in water entering such tank, box, sump, or other container, is physically separated and removed from such water prior to outfall, drainage, or recovery ofsuch water. §IOI.23. Alternate Emission Reduction ("Bubble") Policv_ An owner or operator ofany facility that is affected by any control requirementofChapters \11, 112, 113, 115, and 117 ofthis title (relating to Control ofAir Pollution from Visible Emissions and Particulate Matter; Control ofAir Pollution from Sulfur Compounds; Standards ofPerformance for Hazardous Air Pollutants and for Designated Facilities and Pollutants; Control ofAir Pollution from Volatile Organic Compounds; and Control ofAirPollution from Nitrogen**COll}PQl!.~** ['fA-GB RegulatioflS -l-; H-; HI;¥,¥H;

## ll-fIaI*J adoptedon or afterMarch 30, 1979, may, priorto compliance with such requirement, request the executive director to approve control ofemissions from an alternate facility or from alternate facilities located on the affected property and owned or operated by or under the control ofthe owner or operator ofthe affected facility in lieu ofcompliance with the requirement as prescribed in the regulation, provided the alternate proposed controls are not required by any Texas Commission on Environmental Quality (TCEQ) [:fAGBJ rule, regulation, permit condition, commission [beafa] order, orcourt order. Theexecutivedirectorshall approve control ofemissions from alternate facilities ifthe applicant demonstrates that the alternate controls will yield, by the date specified in the rule, emission reductions that are substantially equivalent to the emissions reductions which would otherwise be required in terms oftheir quantity, character, air quality impacts including health and welfare effects,


## 32 TexReg 722 

## February 23,2007 Texas Register and area affected. Facilities which receive the executive director's approval ofan altemate emissions control plan will be deemed to have compliedwith the otherwise applicable TCEQ 

### [:rA-GB] rule. However, theexecutivedirectormay, afternotice andopportunity forpublichearing, revoke thecreditorauthority for alternatecontrols ifthe executive director [he] determines that any ofthe prerequisites for approval of the alternate controls are no longer met or iffurther emission reductions are needed to meet the intent ofthe Texas Clean Air Act. This agency herebycertifiesthatthe proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 2007. TRD-200700372 Robert Martinez Director. Environmental Law Division Texas Commission on Environmental Quality Earliest possible date of adoption: March 25. 2007 For further information. please call: (512) 239-0348


### 30 TAC §101.22 (Editor:S note: The text ofthefollowing section proposed/iJr repeal willnotbepublished. The section may be examinedin theoffices o/the Texas Commission on Environmental Quality orin the Texas Register office. Room 245, James Earl Rudder Building. 1019 Brazos Street. Austin.) STATUTORY AUTHORITY The repealed section is proposed under Texas Water Code, §5.103, concerning Rules, and §5.105, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382.017. concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes ofthe Texas Clean Air Act. The repealed section is also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control ofthe state's air. The repealed section implements THSC. §§382.002, 382.011, 382.012, and 382.017; and Senate Bill 784. 79th Legislature, 2005. §lOl.22. Effective Date_ This agency hereby certifiesthatthe proposal has been reviewed by legal counsel and found to bewithin the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 2007. TRD-200700373Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Earliest possible date ofadoption: March 25, 2007 Forfurther information, please cali: (512) 239-0348 

## SUBCHAPTER H. EMISSIONS BANKING AND TRADING DIVISION 1. 

## EMISSION CREDIT BANKING AND TRADING 30 TAC §101.302, §101.306 STATUTORY AUTHORITY The amended sections are proposed under Texas Water Code, §5,103, concerning Rules, and §5, 105, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382,017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purpose to safeguard the state's air resources, consistent with the protection ofpublic health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The amended sections are also proposed under THSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause aircontaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.051 and §382,0518, concerning Permitting Authority ofCommission and Preconstruction Permit, that authorize the commission to issue preconstruction and operating air permits, The amended sections are also proposed under42 USC, §7410(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, and 382.017; and Senate Bill 784, 79th Legislature, 2005. §IOI.302, GeneralProvisions. (a)

- (c) (No change.) (d) Protocol. (I) All generators or users ofemission credits shall use a protocol that has been submitted by the executive director to the EPA for approval, ifexisting for the applicable facility or mobile source, to measure and calculate baseline emissions. Ifthe generator or user wishes to deviate from aprotocol submitted by the executive director, EPA approval is required before the protocol can be used. Protocols must be lIsed as follows. (A) Facilities subject to the emission specifications under §flll.-IIO, 117.210, 117.310, 117.410, 117.1010,117.1110, 117.1210.117.1310,117.2010,117.2110, or 117.3310 [f§-l++.+Q6; +1-+.206; ef**~J** ofthis title (relating to Emission Specifications for Attainment Demonstration [f)emeRStfati.eas]; Emission Specifications for Eight-Hour Attainment Demonstration; and Emission Specifications) shall quantify reductions in nitrogen oxide emissions using the testing and monitoring methodologies identified to show compliance with the emission specification. (B)

- (C) (No change,) (2)

- (3) (No change.) (e)

- (I) (No change.) §IOI.306, Emission Credit Use, (a) (No change.) (b) Credit use calculation. (I)

- (2) (No change.) (3) For emission credits used to comply with §§117.123. 117.223,117.320,117.323,117.423,117.1020. 117,1120, 117.1220, or 117.3123**[f§-l~ ef~]**  ofthis title (relating to**[~** Gajr, atle] Source Cap; System Cap; and Dallas-Fon Worth Eight-Hour Ozone Attainment Demonstration Control Requirements), thenumberofemission creditsneeded for increasingthe 30-dayrolling average emission cap ormaximum daily cap should be determined according to the following equation plus an additional 10% to be retired as an environmental contribution. Figure: 30TAC §101.306(b)(3) (4) (No change.) (c) (No change.) This agency hereby certifiesthatthe proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 02007.

TRD-200700374 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Earliest possible date ofadoption: March 25, 2007 Forfurther information, please cali: (512) 239-0348 

## DIVISION 3. MASS EMISSIONS CAP AND TRADE PROGRAM 30 TAC §§101.350, 101.351, 101.353, 101.354, 101.360 STATUTORY AUTHORITY The amended sections are proposed under Texas Water Code, §5.103, concerning Rules, and §5.1 05, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382,017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of


## PROPOSEDRULES February 23, 

## 2007 32 

## TexReg 723the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The amended sections are also proposed under THSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop an emissions inventory; §382.016, concerning Monitoring Requirements, that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions; and §382.051 and §382.0518, concerning Permitting Authority of Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and operating air permits. The amended sections are also proposed under 42 USC, §741 0(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, and 382.017. §IOI.350. Definitions. The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. (I)

- (9) (No changc.) (10) Hotlston-Galveston-Brazoria 

### (HCiill [Hour ton/Ga-lvestoR EHGAi] ozone nonattainment area--As defined in §101.1 ofthis title (rclating to Definitions). (11)

- (14) (No change.) §IOI.351. Applicability. (a) This division applies to all facilities which emit nitrogen oxides (NO,) inthe !:!guston- Galveston-Brazoria [HoustonlCialveston] ozone nonattainment area, as defined in § 101.1 of this title (relating to Definitions) which arc subject to the emission specifications under**§§LLL1J~117** 

## .12I**~0.!:-lJl20** I0 [*J+7.,-HJ6, +++.-W6, ef+J-f-4.:7-!i] 0f this title (relating to Emission Specifications for Attainment Demonstra1!2Jl [DemonsffatiDns] and Emission Specifications) and which arc: (I) located at a site which meets the definition ofmajor 

### source, as defined in §

### 117.10oflhis litle (re!atingto Definitions);**t~]** 

### o!' (2) (No change.) (b) (No change.) §IOI.353. AlIocation oj'AlJowances. (a) Allowances will bc deposited into compliance accounts according to the following equation except as provided in subsection (b) or (h) ofthis section. Figure: 30 TAC §101.353(a) (b)

- (h) (No change.) §IOI.354. Al10wance Deductions. (a) Allowances will be deducted in tenths ofa ton from a site's compliance account for a control period based upon the monitoring and testingprotocols established in §§ 117.340, 117.1240, and 117.2035 

### [* 117.114,**+~** ami+J-7.A..79] ofthis title (relating to Continuous Demonstration ofCompliance; and Monitoring and Testing Requirements**[~** +estffig ilfl6 Monitoring .fer the Heuston/Galveston Ati"afRffient Demonstration; 

# ana Monitoring, Recordkeeping, 

### aRfl -RepeFtiRg ReEtuirements]J. (b)

- (d) (No change.)


## 32 TexReg 724 

## February 23,2007 Texas Register (e) Allowances shall be deducted from a site's compliance account in an amount equal to the nitrogen oxides (NO,) emissions increases from facilities not subject to an emission specification under §117.310 or §117.2010 

### [tl-!-+.W6 ef**f1--l~]** ofthis title (relating to Emission Specifications for Attainment Demonstration [±:lem(i!l

### strati-ens]; and Emission Specifications) which result from changes made after December 31, 2000, to facilities subject to this division and § 117.3I0(e)(3)**[~6fIBE31]** or §117.201O(Q**[§-I-I-H'7~tA]** of this title. Documentation detailing these increases in NO. emissions shall be included with the submittal of the ECT-!

### For~. Annual Compliance Report. (f)

- (g) (No change.) §I()I.360. Level oj'Activit)' Certijication. (a) Thc owner or operator ofany facibty subject to this division shall certify, no later than June 30, 2001, its historieallcvel oractivity by submitting to the executive directoracompleted ECT-3 Form, Level ofActivity Certification, along with any supporting informatioll such as usage records, testing ormonitoringdata, emission factors. and production records as follows: (I)

- (2) (No change.) (3) for new and modified facilities not in operation prior to January I, 1997, that arc subject to emission specifications under .§.§117.310, J 17.1210, or 117.2010 [H117.I06, 6f H-+.4'7-!i] ofthis title (relating to Emission Specifications for Attainmenl**P~ll'1()ll::** stration [f}emenstratiens]; and Emission Specifications) that were first adopted after April 1,2001, and either have submitted under Chapter 116 ofthis title an application which the executive director has determined to be administratively complete within 90 days ofthe effectivc date of this emission specification, or have qualified for a permit by rule under Chapter 106 ofthis title (frelating to Permits by**R-u~~]** and have commenced construction within 90 days ofthe effective date of the emission specification, the level ofactivity authorized by the executive director. (b)

- (c) (No change.) This agency hereby certifiesthatthe proposal has been reviewed by legal counsel and found to bewithin the agency's legal authority to adopt. Fiied v-Jith the Office of the Secretary of State on February 9, 2007. TRD-200700375 Robert Martinez Director. Environmental Law Division Texas Commission on Environmental Quality Earliest possible date of adoption: March 25. 2007 For further information. please call: (512) 239-0348 

### DIVISION 4. DISCRETE EMISSION CREDIT BANKING AND TRADING 30 TAC §101.372, §101.376 STATUTORY AUTHORITY The amended sections are proposed under Texas Water Code, §5.1 03, concerning Rules, and §5.1 05, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382.017,concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The amended sections are also proposed under THSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause aircontaminant emissions to submit information to enablethe commission to develop an emissions inventory; and §382.051 and §382.0518, concerning Permitting Authorityof Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and operating air permits. The amended sections are also proposed under42 USC, §741 0(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, and 382.017; and Senate Bill 784, 79th Legislature, 2005. §101.372. GeneralProvisions. (a)

- (c) (No change.) (d) Protocol. (I) All generatorsorusers ofdiscreteemission credits must use a protocol which has been submitted by the executive director to the EPA for approval, ifexisting for the applicable facility or mobile source, to measure and calculate baseline emissions. Ifthe generator or user wishes to deviate from a protocol submitted by the executive director, EPA approval is required beforethe protocol canbeused. Protocols shall be used as follows. (A) Facilities subject to the emission specifications under §Bill10, 117.210, 117.310, 117.410. 117.1010, 117.1110, 117.1210,117.1310, 117.2010, 117.2110. or 117.3310 [§§1l7.1O&;**6f~]** ofthis title (relating to Emission Specifications for Attainment Demonstration [Demonstrations]; Emission Specifications for Eight-Hour AttaiIUl1ent Demonstration; and Emission Specifications) shall quantify reductions in NO, using the testing and monitoring methodologies identified to show compliance with the emission specification. (B) Facilities subject to the requirements under §§115.112, 115.121, 115.122,115.162,115.211, 115.212, 115.352, 115.421,115.541, or 115.542 ofthis title (relating to [Emission**j.fi~** aoo] Control Requirements and Emission Specifications) shall quantify VOC reductions using the testing and monitoring methodologies identified to show compliance with the emission specifications or the requirements. (C) (No change.) (2)

- (3) (No change.) (e)
- (m) (No change.) §101.376. Discrete Emission Credit Use. (a)

- (c) (No change.) (d) Notice ofintent to use. (I) (No change.) (2) DERC use calculation. (A) To calculate the amount ofdiscrete emission credits necessary to comply with §lll1l23, 117.223, 117.320, 117.323, 117.423. 117.1020, ]]7.1120, 117.1220, 117.3020, or 117.3123 [Hl17.108, +J..+-.+3&, 6f**-H~]** of this title (relating to [System 8ljT, itHe] Source Cap; System Cap; and Dallas-Fort Worth Eight-Hour OzoneAttainment Demonstration Control Requirements), a user may use the equations listed in those sections, or the following equations. (i) For the rolling average cap: Figure: 30 TAC §I 01.376(d)(2)(A)(i) (ii) For maximum daily cap: Figure: 30 TAC §I01.376(d)(2)(A)(ii) (B)

- (E) (No change.) (3)

- (5) (No change.) (e) (No change.) This agency herebycertifies thatthe proposal has been reviewed by legal counsel and found to bewithin the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 2007. TRD-200700376 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Earliest possible date ofadoption: March 25, 2007 Forfurther information, please call: (512) 239-0348 

## DIVISION 5. SYSTEM CAP TRADING 30 TAC §101.383, §101.385 STATUTORY AUTHORITY The amended sections are proposed underTexas Water Code, §5.103, concerning Rules, and §5.105, concerning General Policy, that authorize the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, that establishes the commission purposeto safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The amended sections are also proposed under THSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause aircontaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.051 and §382.0518, concerning Permitting Authorityof Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and


## PROPOSED RULES February 23,2007 32 

## TexReg 725operating air permits. The amended sections are also proposed under42 USC, §741 0(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, and 382.017; and Senate Bill 784, 79th Legislature, 2005. §/O/.383. GeneralProvisions. (a) (No change.) (b) System car limits for units within an electric rower generating system as regulated under 

## ill1lQ2.0 

# r *-1-1-771-38] of lhis title (relating [0 System Car) may be exceedcd with surrlus emission ailowables obtained for that calendar year from another source owner or operator rartieirating in a system car. (c) (No change.) .\\'1 ()1.385. Recordke('IJing andReporting. (a) (No change.) (b) The owneroroperatorofa source participating in a system cap limit for sources subject to**§117~}(llO r~H-1-'7-c~]**  ofthis title (relating to System Cap) shall submit to the executive director an annual rerort. (I)

- (3) (No change.) (c) (No change.) This agency herebycertifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt. Filed with the Office of the Secretary of State on February 9, 2007. TRD-200700377 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Earliest possible date of adoption: March 25, 2007 For further information, please cali: (512) 239-0348 

## TITLE 31. NATURAL RESOURCES AND CONSERVATION 

# PART 2. TEXAS PARKS AND WILDLIFE DEPARTMENT CHAPTER 53. FINANCE Texas Parks and Wildlife Department (department) proposes amendments to §§53,2, 53.5, 53.6, 53.12, and 53.13, concerning License Fees and Boat and Motor Fees, and §53.60 concerning Stamps. The proposed amendments are part of an overall department initiative to reduce the number of types of licenses sold by the department. By combining or replacing certain licenses and license packages and eliminating others that are not popular, the department will reduce administrative costs and regulatory complexity while still offering a variety of licenses to meet the various types of recreational demand.



## 32 TexReg 726 

## February 23, 

## 2007 Texas Register The proposed amendment to §53.2, concerning License Issuance Procedures, Fees, Possession and Exemption Rules, would add a new paragraph (4) to subsection (a) to stipulate that persons underthe age of 17 are considered to be residents forthe purposes ofthe chapter. Under Parks and Wildlife Code, §42.001, the commission is authorized to designate categories of individual as residents. The proposed amendment to subsection (b)(2) would alter the license possession requirements to acknowledge that, due to the implementation of the one-day fishing package (which includes the saltwaterstamp), the stamp requirement is no longer universal. The proposed amendment to §53.5, concerning Recreational Hunting Licenses, Stamps, and Tags, would rename the Special Resident Hunting License to the Senior Resident Hunting License, restrict its use to residents who are 65 years of age or older, and create an additional license that is limited to persons under the age of 17. Under current rule, the Special Resident Hunting License is available to residents overthe age of 65 and any person under 17 years of age, regardless of residency status. The department wishes to be able to more accurately track demographic trends in purchasing and use, which makes it necessary to stratify the two age groups currently eligible to purchase the special resident license. The price ofthe licenses would remain unchanged. The proposed amendment to §53.6, concerning Recreational Fishing Licenses, Stamps, and Tags, would allow persons who are legally blind to be eligible to purchase the Special Resident Fishing License. The proposed amendment also would create a Senior Resident Fishing License for residents who are 65 years of age or older; create a Resident One-Day All-Water Fishing License ($10 fee), a Nonresident One-Day All-Water Fishing 

### license ($15 fee), rename the special license packages as senior license packages, and would implementafee of$3forthe Bonus Red Drum Tag. Under Parks and Wildlife Code, §46.004, the commission may establish a lower fee or waive the fee or license requirement for a resident who is blind as defined by Human Resources Code, §94.001. The department has always allowed legally blind persons to purchase a fishing license at a reduced cost; however, this has never been explicitly stated by rule. The 

### proDosed amendment VJou!d accomclish that. The On8=Dav All-Water license is intended to replace a variety of licenses. To that end, the proposed amendment to subsection (c) would also eliminate the following licenses: July and August Resident Fishing, Day Resident Fishing, and Day Nonresident Fishing; and the following license packages: July and August Resident Fishing (freshwater, saltwater, all water) and both the resident and nonresident "Day Plus" Fishing (freshwater, saltwater, all water). The implementation of a fee for the bonus red drum tag is necessary for the department to recoup the administrative cost of providing anglers with the opportunity to take a red drum in addition to the red drum allowed under afishing license. The proposed amendment also would eliminate obsolete references to effective dates and make additional nonsubstantive changes to simplify and clarify the regulations. The proposed amendment to §53.12, concerning Commercial Fishing Licenses and Tags, would eliminate both the Resident and Nonresident Commercial Fishing Boat License and create a single license for residents and nonresidents alike, which would be called the Commercial Fishing Boat License; and the new license would be required for any boat (resident or nonresident) used in taking aquatic products (except menhaden, oysters,

### Figure: 30TAC §

### 101.306(b)(3) Calculation ofEmissionReductions Neededfor SystemCap or Source Cap

Where: 

### N= 

### the total numberofemission units 

## in the source cap 

### i

## = eachemissionunit in the source cap 

## Hi

# = actual dailyheatinput, in million Britishthermal units (MMBtu) 

### perday, as calculated according to 

### §§117.123(b)(1), 117.223(b)(1), 117.320(c)(1), 117.323(b)(1), 117.423(b)(1), 117.l020(c)(1), 117.1 120(c)(1), or 117.l220(c)(1) ofthis title 

## Ri

# = the facility's emission factor, inpounds (lb)/MMBtu, is defmed as in 

### §§117.l23(b)(1), 117.223(b)(1), 117.320(c)(I), 117.323(b)(1), 117.423(b)(1), 117.1020(c)(I), 117.1120(c)(1), or 117.1220(c)(1) ofthis title 

### Hn

## = themaximumdailyheat input, 

## inMMBtuperday, expected for an emission unit during the use period 

## Rn

# = the maximumemission factor, in IblMMBtu, expected for an emissionunitduring the use period



## 32 TexReg 

## 924 FebruaJJ J

## 23,2007 Texas Register

### Figure: 30 TAC §101.353(a)

Where: (1) A= number ofallowances rounded to tenths oftons; (2) B = the facility's baseline emission rate and is calculated as follows: (A) For facilities in operation priorto January I, 1997: 

# B= (LAn

# *EF97)

# +(LA98

# *EF98)

# +(LA99*EF99) 

# 3(200Q
Where: LA97 = 

### the facility's level ofactivity, as certifiedby the executive director for 1997; LA98 = the facility's level ofactivity, as certifiedby the executive directorfor 1998; LA99 = the facility's level ofactivity, as certifiedby the executive directorfor 1999; EF97 = the facility's emission factor for 1997 orthe emission specifications under §§ 117.310, 117.1210, and 117.20I0 ofthis title (relating to Emission Specifications for AttainmentDemonstration; and Emission Specifications) (ESAD) whicheveris higher, in pounds perunit ofactivity, (not to exceed any applicable federal or state regulation, rule, orpermit limit), as certifiedby the executive director; EF98 = the facility's emission factor for 1998 orthe emission specifications under ESAD, whicheveris higher, in pounds per unit of activity, (not to exceed any applicable federal orstate regulation, rule, or permit limit), as certifiedby the executive director; EF99 = the facility's emissionfactor for 1999 orthe emission specifications underESAD, whicheveris higher, inpounds perunit of activity, (not to exceed any applicable federal or stateregulation, rule, or permit limit), as certifiedby the executive director.



## TABLESAND GRAPHICS February 23,2007 32 

## TexReg 925

### (B) Forexisting facilities not in operationpriortoJanuary 1, 1997 and thathave beenin operation less thanfive complete consecutive calendaryears beginning afterthe end ofthe adjustmentperiod and have notestablishedtwo years of baseline data:

Where: 

# B LAALLOWABLE

# *EF ALLOWABLE 

# 2000

LAAllowable

## =The level ofactivity authorizedby the executive director until such time two consecutive calendaryears ofactual level ofactivity data is available; EFAllowable

## =The emission factor orthe emission specifications under ESAD, whicheveris higher, authorizedby the executive directoruntil suchtime two consecutive calendaryears ofactual emission data is available. (C) Forexisting facilities not in operationpriortoJanuary 1, 1997, and that have establishedtwo consecutive calendaryears ofbaseline data out ofthe first five years ofoperation following the end ofthe adjustmentperiod: 

# B = 

# (LA YEAR

# -1

# *EFYEAR

# -1) 

# +(LA YEAR

- 

# 2

# *EFYEAR

- 

# 2) 

# 2(2000)
Where: LAYear-l 

## =the facility's level ofactivity, as certifiedby the executive director, for the first ofany two consecutive years within the first five years ofoperation; LAYear-2 = 

### the facility's level ofactivity, as certifiedbythe executive director, for the second ofany two consecutive years within the first five years ofoperation; EFYear-l = 

### the facility's emission factor orthe emission specifications underESAD, whicheveris higher, in pounds perunit ofactivity, (notto exceed any applicable federal or stateregulation, rule, orpermit limit), as certifiedby the executive director, for the first ofany two consecutive years within the first five years ofoperation;



## 32 TexReg 926 

## February 23, 

## 2007 Texas Register

### EFYear-2 = 

### the facility's emission factor orthe emission specifications underESAD, whicheveris higher, in pounds perunit ofactivity, (notto exceed any applicable federal or stateregulation, rule, orpermit limit), as certifiedby the executive director, for the second ofany two consecutive years within the first five years ofoperation. (3) X

## =reduction factor, where: (A) For all boilers, auxiliary steamboilers, and stationary gas turbines (including ductburners used in turbine exhaust ducts) within anelectric powergenerating system, as defined in §117.lO(l4)(A) ofthis title (relating to Definitions), located in the Houston-Galveston-Brazorianonattainment area: (i) forJanuary 1,2002throughMarch 31, 2003, X

## =0.00; (ii) for April 1,2003 through March 31, 2004, X == 

### 0.50; (iii) on or afterApril I, 2004, X

## = 1.00; (B) For facilities subjectto the emission specifications under §117.310(a)(l)(A) and (B), (2)(A), (5), (8)(A)(i), (8)(B), (9)(A)(ii), (10), or (11) ofthis title: (i) forJanuary 1,2002 through March 31, 2004, X = 

### 0.00; (ii) for April 1, 2004 through March 31, 2005, X

## =0.47; (iii) for April 1, 2005 through March 31,2006, X = 

### 0.80; (iv) for April 1,2006 through March 31, 2007, X == 

### 0.93; (v) on and afterApril 1, 2007, X = 

### 1.00; (C) For all otherfacilities: (i) forJanuary I, 2002 through March 31, 2004, X

## =0.00; (ii) for April 1,2004 through March 31,2005, X = 

### 0.389; (iii) for April 1, 2005 through March 31, 2006, X == 

### 0.667; (iv) for April 1, 2006 throughMarch 31, 2007, X

## =0.778; (v) on andafterApril 1, 2007, X 

## = 1.00; (D) Alternatively, facilities subjectto the reduction factors under subparagraph B ofthis paragraph may electto comply with the following: (i) forJanuary 1,2002 through March 31, 2005, X=O.OO; (ii) on and afterApril 1, 2005, X=l.OO.



## TABLESAND GRAPHICS February 23,2007 32 

## TexReg 927

### (E) Electionto comply with the alternative reduction schedule under subparagraph (D) ofthis paragraph shallbe made by letter to the executive directorno laterthanApril I, 2003. 

### (F) Forcalendaryears which include two differentreduction factors, the reduction factor shallbe adjusted using the appropriate ratio to reflectthe number ofmonths coveredby eachreduction factor. (4) 

## LAHA

# =historical average level ofactivity, where: (A) For facilities in operation on orbeforeJanuary I, 1997, the average level of activity, as certifiedby the executive director, for 1997, 1998, and 1999; or (B) For existing facilities whichbegan operation afterJanuary 1, 1997, LARA is: (i) the level ofactivity authorizedby the executive directoruntil such time two consecutive calendaryears ofactual level ofactivity data is available, beginningafter the end ofthe adjustmentperiod; or (ii) when two complete consecutive calendaryears ofactual level of activity datais available, beginning afterthe end ofthe adjustment period, the level ofactivitybecomes the average ofthe facility's actual level ofactivity overthosetwo consecutive calendaryears ofactual level ofactivity data. (5) EFfinal

## =emission factor, as listedin 

## §§ 117.310, 117.1210, or 117.2010 ofthis title. (6) For facilities using alternative emission specifications as allowed in 

## §117.310(a)(l7) or 

### §II7.201O(c)(6) ofthis title, the level ofactivity for any formula will be the lowestof the level ofactivity as calculated in variables (2)(A), (2)(B), orthe level ofactivity limitedby an enforceable limitor commitmentnecessary to qualify for an alternative emission specification in .§117.310(a)(l7) or 

## §117.201O(c)(6) ofthis title.

------------------------------------------------------



## 32 TexReg 928 

## FebrualJl 

## 23, 2007 TexasRegister

### Figure: 30 TAC §101.376(d)(2)(A)(i)



## Amount of DERCs N 

### Required = 

# [(EH; x

# ER;)

-(H; X

# R;)]x

# (2~OO)

(tons) Where: d == 

### the number ofdays in the use period i== 

### each emission unit in the source or systemcap N == 

### the total number ofemission units in the source or systemcap 

### Hi == actual dailyheat input, in million Britishthermal units (MMBtu) per day, as calculated according to §§ 117.123(b)(1), 117.223(b)(1), 117.320(c)(1) and (2), 117.323(b)(1), 117.423(b)(1), 117.1020(c)(1), 117.1120(c)(l), 117.1220(c)(1), or 117.3020(c) ofthis title (relating to Source Cap; and System Cap) as applicable 

## R;== actual emission rate, in pounds (lb)/MMBtu, as defined in §§ 117.123(b)(1), 117.223(b)(1), 117.320(c)(1) and (2), 117.323(b)(1), 117.423(b)(1), 117.1020(c)(1), 117.1120(c)(1), 117.1220(c)(1), or 117.3020(c) ofthis title as applicable 

## EH; == 

### expectednew daily heat input, in MMBtuper day 

### ER; == 

### expectednew emission rate, in Ib/MMBtu.



## TABLESAND GRAPHICS FebrualY23, 

## 2007 32 

## TexReg 929

### Figure: 30TAC §101.376(d)(2)(A)(ii)
N 

# 1 AmountofDERCS Required (tons)

# =:L[(EHMiXERi)-(HMiXRi)]-- i=1 

# 2000 Where: i = 

### each emission unit inthe source or system cap N = 

### the totalnumberofemission units in the source or systemcap 

## Ri = 

### inlb/MMBtu, is defined as in §§ 117.123(b)(l), 117.223(b)(1), 117.320(c)(3), 117.323(b)(1), 117.423(b)(l), 117.1020(c)(2), 117.1120(c)(2), or 117.1220(c)(2) ofthis title (relatingto Source Cap; Emission Specifications forAttainmentDemonstration; and SystemCap) as applicable HMi = 

### the maximum daily heat.input, in MMBtuJday, as defined in §§117.123(b)(l), 117.223(b)(l), 117.320(c)(3), 117.323(b)(l), 117.423(b)(l), 117.1020(c)(2), 117.1120(c)(2), or 117.1220(c)(2) ofthis title as applicable 

## EH Mi= 

### expectednew maximum daily heatinput, inMMBtuper day 

## ERi = 

### expectednew emissionrate, in lb/MMBtu.



## 32 TexReg 930 FebrualJl 23, 

## 2007 TexasRegisterKathleen HartnettWhite, 

### Chairman Larry 

### R. Soward, 

### Commissioner Martin 

### A. Hubert, 

### Commissioner Glenn Shankle, 

### ExecutiveDirector

Protecting Texas byReducing andPreventing Pollution 

## NOTICE OF PUBLIC HEARING BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY ON PROPOSED REVISIONS TO 30 TAC CHAPTER 101 AND TO THE STATE IMPLEMENTATION PLAN 

## The Texas Commission on Environmental Quality (commission) will conduct a public hearing to receive testimony regarding proposed revisions to 30 Texas Administrative Code (TAC) Chapter 101, General Air Quality Rules, and to the state implementation plan (SIP), under the requirements of Texas Health and Safety Code, §382.017; Texas Government Code, Chapter 2001, Subchapter B; and 40 Code of Federal Regulations §51.102 of the United States Environmental Protection Agency (EPA) regulations concerning SIPs. The proposed rulemaking would correct references to sections of30 TAC Chapter 117 which are changing due to the reorganization of Chapter 117. This rulemaking would also include revisions identified during the last review of Chapter 101, including changes to the definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. A definition for nitrogen oxides would be added, the definitions ofhazardous waste management facility and hazardous waste management unit would be deleted, references to the title ofthe commission would be corrected, and an obsolete effective date section would be removed. A public hearing on this proposal will be held in Austin, Texas, on March 20, 2007, at 10:00 a.m., in Building B, Room 201A, at the Texas Commission on Environmental Quality complex located at 12100 Park 35 Circle. The hearing will be structured for the receipt of oral or written comments by interested persons. Registration will begin 30 minutes prior to the hearing. Individuals may present oral statements when called upon in order ofregistration. There will be no open discussion during the hearing; however, commission staffmembers will be available to discuss the proposal 30 minutes prior to the hearing. Persons planning to attend the hearing, who have special communication or other accommodation needs, should contact Lola Brown, Office ofLegal Services, at (512) 239-0348. Requests should be made as far in advance as possible. Comments may be submitted to Lola Brown, MC 205, Texas Register Team, Office of Legal Services, Texas COlmnission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. Electronic COlmnents may be submitted at http://www5.tceq.state.tx.us/rules/ecomments. 

## The comment period closes March 26, 2007. All comments should reference Rule Project Number 2006-053- IOI-PR. 

## The proposed rules may be viewed on the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt. html. 

## For further information or questions concerning this proposal, please contact Becky Southard, Air Permits Division, at (512) 239-1638. Issued inAustin, Texas, on Februal)' 7, 

## 2007.

P.O. Box 13087 • Austin, Texas 78711-3087 II 512/239-1000 • Internet address: www.tceq.state.tx.us

# WRITTEN AND ORAL TESTIMONY

## Reference Number


## W-l W-2 

## INDEX OF WRITTEN TESTIMONY



## Submitted Bv


## The United States Environmental Protection Agency Eternal Springs Wellness

### UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1445 ROSS 

### AVENUE, SUITE 1200 DALLAS, TX 75202-2733 

# I )**,~/**



# MAR 23 

# 2007

Ms. LolaBrown Texas RegisterTeam (MC 205) Office ofLegal Services Texas CommissiononEnvironmental Quality P.O. Box 13087 Austin, TX 78711-3087 RE: Rule ProjectNumber2006-053-101-PR DearMs. Brown: Thankyou for the opportunityto review andcomment ontheproposedrevisions to the Texas Administrative Code (TAC) Title 30, Chapter 101 andthe associated revisions to theTexas State ImplementationPlan (SIP). This proposedrulemaking corrects cross references to sections in30TAC Chapter 117 thathave changed as aresult ofthe Chapter 117 reorganization andincludes changes to definitions andtheremoval of obsolete sections. The EnvironmentalProtectionAgency (EPA) appreciates thetime and attentionyourstaffhas devotedtoprocessingthis proposedrulemaking. 

## In general, we are supportive ofthis proposedrulemakingbutwouldliketo providethe following comments for your consideration. 1. 

## TheEPA appreciates yourefforts to update the defInitions andreferences in Chapter 101 that arechangingdue to thereorganization ofChapter 117. 2. TheAlternate EmissionReduction "Bubble" Policy at Chapter 101, section 101.23 is notpartofthe federally approvedregulations inthe Texas SIP. Therefore, EPAwillbeunableto approve theproposed administrative changes to this section. We suggest that TCEQclearly identifythis sectionandtheproposedrevisions as notpartofthe SIP. Additionally, itis EPA's expectationthat an alternative emissionreduction

Internet Address (URL). http://Www.spa,gov RecycledIReoyclable • Printed wnh Vegetable 011 Based Inks on ReCYCled Paper (MInimum 25% Postconsumer)

## 2 policythat is approved for an individual source in Texas wouldbe submitted as acase-specific revisionto the SIP. 3. lfthe Texas Commissionon Environmental Quality (TCEQ) intends to proposethe Alternate EmissionReduction Policy forinclusion in the Texas SIP, this program wouldneedto be developed andproposed in accordance with EPA's guidance on economic incentiveprograms, "ImprovingAirQuality withEconomic Incentive Programs" (January 2001, EPA-4521R-01-00l), in addition to meeting all other applicable requirements ofthe Clean AirAct. We also strongly encourage youto consultthe Region 6 office for assistance during this rule developmentprocess. 4. We note thatthe Chapter 101, SubchapterH, Division 1 Emission Credit Banking and TradingProgram applies to nonattainment areas. The proposed revision to section 101.302(d)(l)(A) includes acitationto section 117.3310, Emission Specifications forEight-HourAttainment Demonstrationfor East Texas Combustion Control. TheEPAbelieves that the inclusion ofsection 117.3310is incorrect since the EastTexas area is attainment forallpollutants. 5. There appears to be an inconsistencyregarding the cementkilns under section 117.3123 and the proposedrevisions to section 101.306(b)(3) and Figure 30 TAe § 101.306(b)(3). Section 101.306(b)(3) provides that emissionreduction credits canbeused for compliancewith the requirements at section 117.3123, but section 117.3123 is notincluded in the equationunderFigure 30 TAC § 101.306(b)(3) "Calculation of EmissionReductions Needed for SystemCap orSource Cap". Additionally, this sameinconsistency appears in theproposedrevisions to sections 101.372(d)(1)(A), 101.376(d)(2)(A), andFigure 30 TAC § 1 (\1 ?"'/>';{

### A)'(")\(A)'(;\ 

## ,,-rtho 

## n;s"ret'" Pml'ssl'on Ct"'Q1"tBank r

### ;ngl**'''n~** 'T',..."-l'n,, lVJ..J IU\..U**\...~)** J.) U.1. J. v LJI.. "" "",J.-J... ..... U
. u.- ..... .LU._U.L6 

## Program. Please review and updatethe citations accordingly. 6. Section 101.306(b)(3) provides thatthe amount ofemission credits needed forincreasingthe 30-dayrolling average emissioncap ormaximumdaily cap shouldbe determined accordingto Figure 30 TAC 

## § 101.306(b)(3). Wenote thatthe citations to Chapter 117 

## inFigure 30TAC § 101.306(b)(3) do notreference themaximum daily cap requirements. Pleasereview andupdate the citations accordingly. 7. Figure 30 TAC 

## § 101.376(d)(2)(A)(ii) provides the calculationto determine thenumberofdiscrete emission credits necessaryto comply withthe maximum daily cap requirements in Chapter 117. Wenote that sections 117.123(b)(1), 117.223(b)(1), 117.323(b)(1), and 117.423(b)(l) referto rolling 30-day average emission caps instead ofmaximumdaily

## 3
caps. Pleaseupdatethe citations to referencethe appropriatemaximum daily caps. Thank you again forthe opportunity to provide conunents. Please note thatthese corrunents do notconstitutefinal detenninations concerning approvability oftherevisions to the Texas SIP. We areproviding thesecomments to assist TCEQ inthe development ofregulatorylanguage. We look fOlWardto working 

## with TCEQ as youmove forward in responding to these comments andfinalizing therevisions to the Texas SIP. 

## Ifyouhave any questions, please 

## call Ms. AdinaWiley ofmy staffat (214) 665-2115. Sincerelyyours,

# ct~eobn8zJeffRobinson Chief 

## AirPermits Section

### 02/26/2007 04:32 PM
First Name: michele Last Name: bonilla Company/Organization: elternal springs wellness E-mail Address: mbonilla3@gmail.com Street Address: 1712 fairview City: houston State: tx Zip Code: 77006 Phone Number: Fax Number: Rule: 2006-053-101-PR Comments: i wanted to reference this and 2006-136114EN and tellyou that i want to be sure that there are concrete way to achieve clean air in any proposal. i now suffer from asthma and bronchitis die to the air quality of HOuston. As a long time**busines~** 

### woman here, i want to continue to contribute to the economy of Houston and do my workshopa dn businees here; yet there are so many cleaner venues for my clientel that i am concerned about their well-being and the economic impact on Houston. i would like to see the smog cleaned up now and not by 2018. i have the priveledge of travel and would like to see us implement the claifornia standards. I would like to see the VOC storage tank/degasing regulations and rules strengthened and implemented by jan1, 2009. We are at a critical time and have been for the last 50 years, our children and their children deserve a clean planet. i deserve to breathe and not have to use inhalers. thank you for your consideration michele bonilla

## INDEX OF ORAL TESTIMONY Public Hearing March 20, 2007, 

## in Austin

No orals comments were received for the proposed rulemaking.

# EVALUATION OF TESTIMONY

# Texas Commission on Environmental 

# Quality

__ INTEROFFICE MEMORANDUM


### To: Thru:

From:

Docket No.: Subject: Commissioners LaDOlm<J CastaflUela, ChiefClerk GleIm Shankle, Executive Director Dan Eden, Deputy Director Office ofPermitting, Remediation, and Registration 2006-2026-RUL Commission Approval for Rulemaking Adoption Chapter 101, General Air Quality Rules General Air Rules Citations Rule Project No. 2006-053-101-PR 

### Date: July 6, 2007

Reasons for the rule pacl-age:

• Under what authority are we adopting these changes? Texas Water Code, §5.102, General Powers, §5.103, Rules, and §5.105, General Policy; and Texas Health and Safety Code, §382.002, Policy and Purpose, §382.011, General Powers and Duties, §382.012, State Air Control Plan, §382.014, Emission Inventory, §382.016, Monitoring Requirements; Examination of Records, §382.017, Rules, §382.051, Permitting Authority of Commission; Rules, and 42 United States Code (USC), §741O(a)(2)(A), that requires state implementation plans (SIPs) to include enforceable measures or techniques including economic incentives such as fees, marketable permits, and auction ofemission rights.

• Is this rulemaking required by federal rule or state statute? Cross-referencing revisions to Chapter 101 were driven by the reorganization of Chapter 117, which also includes new sections which are part ofthe federalJy required SIP. This ru1emaking is not required by state statute.

• Are there any legal deadlines by 

### which these rules must be adopted or effecthe? No, but the 

## changes to Chapter 101 are intended to be effective as soon as possible after tbe cbanges to 

## Chapter 117 become**effe~tive.**



### • What issue(s) or problem(s) are we trying to solve? Chapter 101 contains references to sections of Chapter 1]7 whicb are changing due to the reorganization for Chapter 117, requiring that the cited references in Chapter 101 also change. This rule pacblge also includes revisions identified during the last quadrennial review ofChapter 101.

• Why is 

## it important that we do this rule p3ckage? Updating Chapter 101 will provide a more correct and less confusing set ofgeneral rules for the regulated community and the agency.

• Other important background or historical information. None. St:Ope of' the rulemaking: The amendments would update the cross-references to Chapter 117 and make minor revIsIOns and corrections (see staffrecommendations).

### Commissioners Page 2 

### July 6, 2007 Re: Docket No. 2006-2026-RUL Changes required by**f~deral** 

### rule: Cross-referencing reVISIOns to 

### Chapter 101 were driven by the reorganization of Chapter 117 whicl] also includes new sections which are

## part of the federally required SIP.

• Changes required by state statute: None.

• Staffrecommendations that are not expressly required by federal rule or state statute: Specifying that the definitions in 

## §101.J 

### apply to alJ air quality rules. Changing definitions of cold solvent cleaning, conveyorized degreasing, and open-top vapor degreasing by deleting the word "metal" so that the definition also applies to cleaning non-metal parts. Deleting definitions for hazardous waste management facility and hazardous waste management unit as they are no longer used in the rules. Revising the definition of high-volume, low-pressure spray guns to specify that the operating pressure ofthis equipment is measured at the air cap. Adding the Chapter 117 definition for nitrogen oxides. Changing the definition for standard conditions by deleting the last sentence, "Pollutant concentrations from an incinerator will be corrected to a condition of50percent excess air if the incinerator is operating at greater than 50 percent excess air." Updating the second sentence of the definition of visible emissions to read as fo]Jows: "The radiant energy from an open flame is not considered a visible emission under this definition," adding the word "not." Repealing 

### §101.22, Effective Date. Impact on the regulated community:

• Who will be**affect~d?** 

### Owners and operators offacilities**su~ject** 

### to Chapter 101.

• Does it create a group ofaffected persons who were not affected previously? No.

• Will there be a fiscal impact? No. lmpact on the public:

• Who wiJJ be affected'! N/A.

• Does 

## it create a group ofafTectecl persons who were not affected previously'! No.

• Will there be a riscal impact? No. Impact 011 

### agency pl'()gnullS: TIle changes to Chapter 101 will serve to more correctly reference the updated Chapter 117 and update the definitions portion ofthe rule.

### Commissioners Page 3 July 6, 2007 Re: Docket No. 2006-2026-RUL Stakeholder meetings:

• Have any stakeholder meetings been held? No.

• With whom? N/A.

• What were the general sentiments'! N/A.

• Were any changes made in response to stalceholder concerns? N/A. Policy issues:

• What policy issues are affected'! None.

• Are any policies that are not currently based on rule being made into a rule? No.

• What are the consequences if this rulemaking is not approved to go forward? Chapter 101 would be inaccurateand difficult to cross-reference with Chapter 117.

• Are there aJternatives? No. Potentially controversial matters: None. 

## Key points in adoption rulemaking schedule:



# • • 

# • Texas Registerpublication date: Anticipated effective date: Six-month adoption deadline: 

### 02123/07 08/l6/07 

### 08123107 Public comment: No comments were made al the public hearing. The United States Environmental Protection Agency (EPA) and one organization provided written comments. The organization's comments did no! pertain to the rule revision, but some ofEPA's comments resulted in reference changes within the rule. Significant changes from proposal: EPA's concerns were generally dealing with references that were unrelated to the Chapter 117 reorganization. EPA 

### also commented about inconsistencies in some sections ofSubch8pter 

### I-1 between the cit8tioll references and the corresponding figures. The rule has been revised to correct these references. There was one comment from EPA which asked for clarification as to whether or not a section was parl of the 

### SIP. The response to this commenl clarifies that 

### §101 .23 is not part of tbe federally approved regulations in the Tex.as SIP. The Commission currently applies the conditions of this section either lbrougll other rules oftbe commission or through individual permits. The Executive Director recommends that tIle proposed amendments to §J 

### 01.23 not be adopted.

### Commissioners Page 4 July 6,2007 Re: Docket No. 2006-2026-RUL 

## Agenc)' contacts: Becky Southard, Rule Project Manager, 239-1638, Air Permits Division Tim Eubank, StaffAttorney, 239-1976 Patricia Duron, Texas Register Coordinator, 239-6087

Attaclm1ents

cc: ChiefClerk, 5 copies Executive Director's Office David C. Schanbacher, P.E. Jason Skaggs Ashley 

## K. Wadick Becky Walker Office ofGenera] Counsel Bec.l)' Southard Patricia Duron

cc (without attachments): Tim Eubank, StaffAttorney Debi Dyer, Program Office Liaison Tara Capobianco, Division Liaison Booker Harrison, OL5 Liaison Russ Kimble, OLS

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-101-PR

The Texas Commission on Environmental Quality (TCEQ or commission) adopts amendments to Page I

§§10l.l, 101.302,101.306,101.350,101.351,101.353,101.354,101.360, 101.372,101.376,101.383, and 101.385 and the repeal of§ 101.22. Sections 101.1,101.302,101.306, 101.354,and 101.376 are adopted 

### with changes to the proposed text as published in the February 23, 2007 issue ofthe 

### Texas Register. Sections 101.22,101.350,101.351,101.353,101.360,101.372,101.383, and 101.385 are adopted 

### without changes to the proposed text and will not be republished.

The commission does not adopt the proposed amendments to 

### §101.23 as published in the February 23, 2007, issue ofthe 

### Texas Register.

The amended §§101.1, 101.302, 101.306, 101.350, 101.351,101.353,101.354,101.360,101.372, 101.376, 101.383, and 101.385 and the repeal of§101.22 will be submitted to the United States Environmental Protection Agency (EPA) as revisions to the Texas State Implementation Plan (SIP).

BACKGROUND AND SUMMARY OF THE FACTUALBASIS FOR THE ADOPTED RULES The commission has adopted revisions to 30 Texas Administrative Code (30 TAC) Chapter 117, Control ofAirPollution from Nitrogen Compounds, as part ofthe SIP for the Houston-Galveston-Brazoria (HGB) and Dallas-Fort W0l1h nonattainment areas. Underthose revisions, Chapter 117 was reorganized. Chapter 101, General Air Quality Rules, contains references to sections ofChapter 117 which have changed due to the reorganization, requiring that the cited references in Chapter 101 also change. This adoption also includes revisions identified during the last quadrennial review ofChapter 10I, including changes to the definitions ofcold solvent cleaning, conveyorized degreasing, high-volume low-pressure spray guns. open top vapor degJ'easing, standard conditions, and visible emissions. Other changes include

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule ProjectNo. 2006-053-10I-PR Page 2

the deletion ofthe definitions ofhazardous waste management facility and hazardous waste management unit, the addition ofa definition for nitrogen oxides, and the removal ofan obsolete effective date section. EPA comments dealing with some references unrelated to the Chapter 117 reorganization, resulted in

some changes.

SECTIONB YSECTIONDfSCUSSJON 

### §1 ()1.1. 

### Definitio/ls. The commission adopts the modification ofthe opening paragraph ofthis section to specify thatthe definitions in § 101.1 apply to all air quality rules. The commission adopts the changes to the definitions ofcold solvent cleaning, conveyorized degreasing, and open-top vapor degreasing by deleting the word "metal" so that the processes also apply to cleaning non-metal parts. The adopted amendmentdeletes the definitions ofhazardous waste management facility and hazardous waste management unit because references to these definitions are not found in any ofthe air rules. The adopted revision to the definition ofhigh-volume low-pressure spray guns specifies thatthe operating pressure ofthis equipment is measured at the aircap because this provides the most accurate measurement. The commission adopts the addition ofthe definition ofnitrogen oxides from Chapter 117 because this is a common term used throughout the commission's air quality rules. The adopted amendmentdeletes the last sentence ofthe definition ofstandard conditions thatreads: "Pollutantconcentrations from an incinerator will be corrected to a condition of50% excess air ifthe incinerator is operating at greater than 50e 

### X, excess air." The amount ofairpresent in combustion is variable and does not qualify as a standard condition. The commission adopts the change in the second sentence ofthe definition ofvisible emissions to read: "The radiant energy from an open flame is not considered a visible emission underthis definition." Radiant energy may manifest some visual effects but there is no air contaminant emitted.

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule ProjectNo. 2006-053-10I-PR

§101.22. Effective Date. 

### The commission adopts therepeal ofthis section because it is no longerrequired.**S~'1** 

### 01.302. GeneralProvisions. 

### Page 3

The commission adopts thereferences to the newly renumbered Chapter 117 sections. The section has been revised sinceproposal due to a comment submitted by the EPA to remove the reference to §117.3310, Emission Specifications for Eight-Hour AttainmentDemonstration, from 

## §101.302(d)(1)(A) 

### since the EastTexas area is attainmentfor all pollutants.

§101.306. Emission Credit Use. 

### The commission adopts thereferences to the newly renumbered Chapter 117 sections. The section has been revised sinceproposal to remove the reference to §

### 117.3123 from §

### 101.306(b)(3) because the rule does notrequire itto be referenced in the equation underFigure 30 TAC §

### 101.306(b)(3). Also, references to maximum daily cap and references to emission credits that are to be used for compliance with therequirements ono TAC Chapters 114, Control ofAir Pollution from Motor Vehicles, Chapter 115, Control ofAirPollution from Volatile Organic Compounds (VOCs), or Chapter 117 or other programs, were added to this section since proposal due to a comment submitted by the EPA.

§101.350. Definitions. 

### The commission adopts the replacement ofthe definition ofHouston/Galveston (HGA) ozone nonattainment area with HGB ozone nonattainment area because the name ofthe nonattainment area has changed.

### Texas Commission on Environmental Quality Chapter 

## 101

-General Air Quality Rules Rule ProjectNo. 

## 2006-053-10I-PR
§]()1.351. Appficahi/ity. 

### Page 4

The commission adopts the replacement ofreferences to Chapter 

## 117 section numbers with the newly renumbered Chapter I

## 17 sections.

§lOl.353. Allocation 

### of AIlowances. 

### The commission adopts the replacement ofreferences to Chapter I

## 17 section numbers with the newly renumbered Chapter 

## 117 sections. This section has been changed since proposal to add references to sections dealing with Initial Demonstration ofCompliance. These changes were unrelated to the
comments submitted by EPA.

§lOl.354. AllowanceDeductions. 

### The commission adopts the replacement ofreferences to Chapter 

## 117 section numbers with the newly renumbered Chapter 

## 117 sections.

§lOl.360. Level of Activity Cert!!teation. 

### The commission adopts the replacement ofreferences to Chapter 

## 117 section numbers with the newly renumbered Chapter 

## 117 sections.

§lOJ.372. GeneralProvisions. 

### The commission adopts the replacement ofreferences to Chapter 

## 117 section numbers with the newly renumbered Chapter 1

## 17 sections.

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-l0l-PR


### §101.376. Discrete Emission Credit Use. Page 5

The commission adopts the replacement ofreferences to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. This section has been changed since proposal due to a comment submitted by the EPA to correctly reference maximum daily caps instead ofrolling 30-day average emIssion caps.



### §101.383. GeneralProvisions. The commission adopts the replacement ofreferences to Chapter 117 section numbers with the newly renumbered Chapter 117 sections.



### §101.385. RecordkeepingandReporting. The commission adopts the replacement ofreferences to Chapter 117 section numbers with the newly renumbered Chapter 117 sections.

The commission also adopts minor administrative changes to address conformity to 

### Texas Register requirements and other agency rules and guidelines.

FINAL REGULATORY IMPACT ANALYSIS DETERMINATION The commissionreviewed the adopted rulemaking in light ofthe regulatory impact analysis requirements ofTexas Government Code, §200l.0225, and determined that this adoption is not subject to §200l.0225 because it does not meet the definition ofa majorenvironmental rule as defined in that statute. A "major environmental rule" means a rule, the specific intent ofwhich is to protect the environment orreduce risks to human health from environmental exposure and that may adversely affect in a material way the

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-10I-PR Page 6

economy, productivity, competition,jobs, the environment, or the public health and safety ofthe state or a sector ofthe state. Although the ultimate intent is to protect the environment, these adopted amendments

are mainly the result ofan administrative action only, to correct and update cross-references to Chapter 117, which has been reorganized, modify certain definitions, and make other procedural changes to Chapter 101
.
Chapter 117, Control ofAir Pollution from NitTogen Compounds, has been reorganized. Chapter 101, General Air Quality Rules, contains extensive references to sections ofChapter 117 that were renumbered because ofthe reorganization. The references contained in Chapter 101 must change accordingly. This adoption also includes revisions identified during the last quadrennial review ofChapter 101 by the executive director and includes changes to the definitions ofvisible emissions, cold solvent cleaning, conveyorized degreasing, open- top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. Other adopted changes include deleting the definitions ofhazardous waste management facility and hazardous waste management unit, adding a definition for nitrogen oxides, and removing an obsolete effective date section. The adopted rules will not adversely affect 

### in a material way the economy, a sector ofthe economy, productivity, competition,jobs, the environment, or the public health and safety ofthe state or a sector ofthe state.



### In addition, a regulatory impact analysis is not required because the rules do not meet any ofthe four applicability criteria for requiring a regulatory impact analysis ofa major environmental rule as defined in the Texas Government Code. Section 2001.0225 applies only to a majorenvironmental 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 ofstate law, unless the rule is specifically required by federal law; 3)

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-101-PR

exceed arequirement ofadelegation agreement or contractbetween the state and an agency or Page 7

representative ofthe federal government to implement a state and federal program; or4) adopt arule solely underthe general powers ofthe agency instead ofunder a specific state law. This rulemaking does
not exceed a standard set by federal law, and the adopted requirements are consistent with applicable federal standards. In addition, this adoption does not exceed an express requirement ofstate law and is not adopted solely underthe general powers ofthe agency, but is specifically authorized by the provisions cited in the STATUTORYAUTHORITY section ofthis preamble. Finally, thisrulemaking does not exceed arequirement ofadelegation agreement orcontract to implement a state and federal program.

The commission solicited comments on the draft regulatory impact analysis detern1ination and no comments werereceived.

TAKINGS IMPACT ASSESSMENT The commission evaluated this rulemaking action and performed an analysis ofwhetherthe adoptedrules

are subject to Texas Government Code, Chapter 2007. The primary purpose ofthe rulemaking is to update references to sections ofChapter 117, whichhas been reorganized, to modify certain definitions, and to make otherprocedural changes to Chapter 101. These amendments do not affect private property in amannerthat restricts or limits an owner's right to the propeliy that would otherwise exist in the absence ofthe governmental action. Promulgation and enforcement ofthese adopted rules is neither a statutory nor a constitutional taking because they do not affect private real property. Therefore, these rules do not constitute a taking under Texas Government Code, Chapter 2007.

### Texas Commission on EnvIronmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-10I-PR

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM Page 8

The commission reviewed the adopted rulemaking and found the adoption is arulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §SOS.11 (b)(2), relating to rules subject to the Coastal Management Program, and will, therefore, require that goals and policies ofthe Texas Coastal ManagementProgram (CMP) be considered during the rulemaking process. The commission reviewed this rulemaking for consistency with the CMP goals and policies In 

### accordance with the regulations ofthe Coastal Coordination Council and determined that the amendments are consistent with CMP goals and policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values ofcoastal natural resource areas (31 TAC §501.l2(1)). The adopted rules update references and definitions. No new sources ofair contaminants will be authorized and the revisions will maintain the same level ofemissions control as previous rules. The CMP policy applicable to this rulemaking action is the policy that the commission's rules comply with federal regulations In 

### 40 Code ofFederal Regulations, to protect and enhance air quality in the coastal areas (31 TAC §501.l4(q)). This rulemaking action complies with 40 Code ofFederal Regulations Part 51, Requirements for Preparation, Adoption, and Submittal ofImplementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirms that this rulemaking action is consistent with CMP goals and policies.

The commission solicited comments on the consistency ofthis rulemaking, but no comments on the CMP

were received.

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule ProjectNo. 2006-053-101-PR

PUBLIC COMMENT Page 9

Apublic hearing on the proposal was held in Austin onMarch 20, 2007 at the TCEQ. No comments

were received at the public hearing. The commissionreceived written comments from the EPA and Eternal Springs Wellness during the public commentperiod, which closed on March 26,2007.

EPA suggested modifications to the adopted rules as stated in the RESPONSE TO COMMENTS section ofthis preamble, and commented that they appreciate efforts made to update definitions and references in Chapter 101 that are changing due to the reorganization ofChapter 117.

RESPONSE TO COMMENTS Eternal Springs Wellness commented that they oppose delaying the plan until 2018 and would like to see cleanerairnow. Eternal Springs Wellness commented that they would like to see the implementation of California standards and VOC storage tank/degassing regulations strengthened and implemented by January 1, 2009.



### The commission appreciates the commenters' interest in air quality. The comments do not relate to the proposed Chapter 10] revisions, and no changes to the rule have been made in response to them.

EPA noted that since §101.23 IS 

### no longer part ofthe federally approved regulations in the Texas SIP, they would be unable to approve the proposed administrative changes to this section.

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule Project No. 2006-053-10I-PR Page 10



### The commission agrees that 

## §101.23 

### is not part ofthe federally approved regulations in the Texas SIP. The commission applies the conditions ofthis section eitherthrough other rules ofthe commission or throngh individual permits, and the proposed amendments to §101.23 have not been adopted.

EPA noted that, to be included in the Texas SIP, the Alternate Emission Reduction Policy would need to be developed in accordance with EPA's guidance on economic incentiveprograms, as well as meet applicable Clean Air Act requirements.



### The commission is not currently considering whether to adopt any rules regarding an alternate emission reduction policy.

EPA commented that 

### §I01.302(d)(I)(A) incorrectly references 

### §117.3310, since emission reduction credits (ERCs) only apply to nonattainment areas.



### The rule has been revised to remove the reference to §117.3310.

EPA commented that there is an lIlconsistency in 

### §101.306(b)(3) with Figure 30 TAC 

### §101.306(b)(3) and §101.376(d)(2) with Figure 30 TAC §101.376(d)(2)(A). Sections 101.306(b)(3) and 101.376(d)(2) allow the use ofcredits for compliance with §117.3123 but the section is not included in the figures Figure: 30 TAC §101.306(b)(3) and Figure: 30 TAC §I01.376(d)(2)(A).

### Texas Commission on Environmental Quality Chapter 101

- General Air Quality Rules Rule ProjectNo. 2006-053-10I-PR



### The rule has been revised to remove the reference to §117.3123 from §101.306(b)(3). SectionPage II



### 117.9800 allows ERCs and discrete emission reduction credits (DERCs) to be used for alternative compliance with §117.3123. However, the equation to determine complianceto the source cap in §117.3123 is different from the equations in Figure 30 TAC §101.306(b)(3) and Figure 30 TAC §101.376(d)(2)(A)(i). For compliance with §117.3123, the equations in §117.3123 are required to be used in place ofFigure 30 TAC §101.306(b)(3) orFigure 30 TAC §101.376(d)(2)(A)(i).

EPA commented that Figure 30 TAC §101.306(b)(3) does not reference the maximum daily cap requirements found in §101.306(b)(2).



### The rule has been revised to include references to both the 30-day rolling average and the maximum daily cap average requirements for system caps and source caps.

EPA commented thatFigure 30 TAC §101.376(d)(2)(A)(ii) incorrectly references §§ 117.123(b

### )(1), 117.223(b)(1), 117.323(b)(1), and 117.423(b)(1), which referto rolling 30-day average emission caps instead ofmaximum daily caps.



### The rule has been revised to change the citations to §§117.123(b)(2), 117.223(b)(2), 117.323(b)(2) and 117.423(b)(2).

# STAFF RECOMMENDATIONS

## CHAPTER 101: GENERAL AIR QUALITYRULES SUBCHAPTERA: GENERALRULES §101.1 §101.1. Definitions.

Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules ofthe commission, the terms used by the commission have the meanings commonly ascribed to them in the field ofairpollution control. In addition to the terms that are defined by the TCAA, the following terms, when used in the air quality rules in this title, have the following meanings, unless the context clearly indicates otherwise.

(1) Account--For those sources required to be permitted under Chapter 122 ofthis title (relating to Federal Operating Permits Program), all sources that are aggregated as a site. For all other
sources, any combination ofsources under common ownership or control and located on one or more contiguous properties, orproperties contiguous except for intervening roads, railroads, rights-of-way, waterways, or similardivisions.

(2) 

### Acid gas flare--A flare used exclusively for the incineration ofhydrogen sulfide and other acidic gases derived from natural gas sweetening processes.

(3) 

### Agency established facility identification nnmber--For the purposes ofSubchapter F ofthis chapter (relatingto Emissions Events and Scheduled Maintenance, Startup, and Shutdown Activities), a unique alphanumeric code required to be assigned by the owner or operator ofa regulated entity that the emission inventory repOliing requirements of

### § 101.10 ofthis title (relating to Emissions Inventory Requirements) are applicable to each facility at that regulated entity.

### (4) Ambient air--That portion ofthe atmosphere, external to buildings, to which the general public has access.

(5) Background--Background concentration, the level ofaircontaminants that cannotbe reduced by controlling emissions from man-made sources. It 

### is determined by measuring levels in 110nurban arcas.

(6) BoiJer--Any combustion equipment fired with solid, liquid, and/or gaseous fuel used
to produce steam or to heat water.

(7) Capture system--All equipment (including, but not limited to, hoods, ducts, fans, booths, ovens, dryers, etc.) that contains, collects, and transports an airpollutant to a control device.

(8) Captured facility--A manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed ofon a sharedbasis in an Il1tegrated waste management unit owned, operated by, and located within a contiguous manufacturing complex.

(9) Carbon adsorber--An add-on control device that uses activated carbon to adsorb volatile organic compounds from a gas stream.
(10) 

### Carbon adsorption system--A carbon adsorberwith an inlet and outlet for exhaust gases and a system to regenerate the saturated adsorbent.

### (11) Coating--A material applied onto or impregnated into a substrate for protective, decorative, orfunctional purposes. Such materials include, but are notlimited to, paints, varnishes, sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings.

(12) Cold solvent cleaning--A batch process that uses liquid solventto remove soils from the surfaces ofparts orto dry the parts by spraying, brushing, flushing, and/or immersion while maintaining the solventbelow its boiling point. Wipe cleaning (hand cleaning) is not included in this definition.

(13) Combustion unit--Any boilerplant, furnace, incinerator, flare, engine, or other device or systemused to oxidize solid, liquid, or gaseous fuels, butexcluding motors and engines used in propel1ing land, water, and airvehicles.

(14) Combustion turbine--Any gas turbine system that is gas and/or liquid fuel fired with orwithoutpower augmentation. This unit is either attached to a foundation or is portable equipment operated at a specific minor ormajor source for more than 90 days in any 12-monthperiod. Two or more gas turbines powering one shaft will be treated as one unit.

(15) Commercial hazardous waste managementfacility--Any hazardous waste management facility thataccepts hazardous waste orpolychlorinatedbiphenyl compounds for a charge, except a captured facilitythat disposes only waste generated on-site orafacility that accepts waste only from other facilities owned or effectively control1ed by the same person.

(16) Commercial incillerator--An incinerator used to dispose ofwaste material from retail and wholesale trade establishments.

### (17) Commercial medical waste incinerator--A facility that accepts for incineration medical waste generated outside the property boundaries ofthe facility.

(18) Component--A piece ofequipment, including, but not limited to, pumps, valves, compressors, and pressure reliefvalves that has the potential to leak volatile organic compounds.

(19) Condensate--Liqulds that result from the cooling and/or pressure changes of produced natural gas. Once these liquids are processed at gas plants orrefineries or in any other manner, they are no longer considered condensates.

(20) Construction-demolition waste--Waste resulting from construction ordemolition projects.

(21) Control system or control device--Any part, chemical, machine, equipment, contrivance, or combination ofsame, used to destroy, eliminate, reduce, or control the emission ofair contam1l1ants to the atmosphere.

(22) Conveyorized degreasing--A solvent cleaning process that uses an automated parts handling system, typically a conveyor, to automatically provide acontinuous supply ofparts to be cleaned

or dried using either cold solventor vaporized solvent. A conveyorized degreasing process is fully enclosed except for the conveyor inlet and exit portals.

(23) Criteria pollutant or standard--Any pollutant for which there is anational ambient air quality standard established under 40 Code ofFederal Regulations Part 50.

### (24) 

### Custody transfer--The transfer ofproduced crude oil andlorcondensate, after processing and/or treating in the producing operations, from storage tanks or automatic transferfacilities
to pipelines or any otherforms oftransportation.


### (25)

### Deminimis impact--A change in ground level concentration ofan air contaminant

as aresult ofthe operation ofany new major stationary source or ofthe operation ofany existing source that has undergone a majormodification that does not exceed the following specified amounts.

Figure: 30 TAC §101.1(25)



## AIR CONTAMINANT ANNUAL 24-HOUR 8-HOUR 3-HOUR I-HOUR Inhalable Particulate Matter (PMIO) 

### 1.0 I1g/m3 5 I1g/m3 SulfurDioxide I.Ol1g/ m3 5**~lg/m3** 

### 25**~lg/m3** 

### Nitrogen Dioxide 1.0**~lg/m3** 

### Carbon Monoxide 0.5 mg/m3 2 mg/m3

(26) 

### Domestic wastes--The garbage and rubbish nOffi1ally resulting from the functions of life within aresidence.

(27) 

### Emissions banking--A system for recording emissions reduction credits so they may be used or transferred for future use.

(28) 

### Emissions evcllt--Any upset event or unscheduled maintenance, startup, or shutdown activity, fi'om a common cause thatresults in unauthorized emissions ofaircontaminants fi'om

one or more emissions points at aregulated entity.

### (29) Emissions reduction credit--Any stationary source emissions reduction that has been banked in accordance with Chapter 101, Subchapter H, Division 1 ofthis title (relating to Emission Credit Banking and Trading).

(30) Emissions reduction credit certificate--The certificate issued by the executive director that indicates the amount ofqualified reduction available for use as offsets and the length oftime the reduction is eligible for use.

(31) 

### Emissions unit--Any part ofa stationary source that emIts, or would have the potential to emit, any pollutant subject to regulation underthe Federal Clean Air Act.

(32) Excess opacity event--When an opacity reading is equal to orexceeds 15 additional percentage points above an applicable opacity limit, averaged over a six-minute period.

(33) Exempt solvent--Those carbon compounds or mixtures ofcarbon compounds used

as solvents that have been excluded from the definition ofvolatile organic compound.

(34) External floating roof--A cover or roofin an open top tank that rests upon or is floated upon the liquid being contained and is equipped with a single or double seal to close the space between the roofedge and tank shell. A double seal consists oftwo complete and separate closure seals,

one above the other, containing an enclosed space between them.

(35) Federal motor vehicle regulation--Control ofAir Pollution from MotorVehicles and Motor Vehicle Engines, 40 Code ofFederal Regulations Part 85.

### (36) Federally enforceable--All limitations and conditions that are enforceableby the United States Environmental Protection Agency administrator, including those requirements developed under40 Code ofFederal Regulations (CFR) Parts 60 and 61; requirements within any applicable state implementation plan (SIP); and any permit requirements established under40 CFR §52.2l orunder regulations approved under40 CFRPart 51, Subpart 1, including operatingpermits issued underthe approved programthat is incorporated into the SIP and that expressly requires adherence to any permit issued under such program.

(37) Flare--An open combustion unit (i.e., lacking an enclosed combustion chamber) whose combustion air isprovidedby uncontrolled ambient air around the flame, and that is used as a control device. A flare may be equipped with aradiant heat shield (with or without arefractory lining), but is not equipped with aflame air control damping system to control the air/fuel mixture. In 

### addition, a flare may also use auxiliary fuel. The combustion flame may be elevated or at ground level. A vapor combustor, as defined inthis section, is not considered a flare.

(38) Fuel oiJ--Any oil meeting the American Society forTesting and Materials (ASTM) specifications for fuel oil in ASTM D396-01, Standard Specifications for Fuel Oils, revised 2001. This includes fuel oil grades 1, 1 (Low Sulfur), 2, 2 (Low Sulfur), 4 (Light), 4, 5 (Light), 5 (Heavy), and 6.

(39) Fugitive emission--Any gaseous orparticulate contaminantentering the atmosphere that could not reasonablypass through a stack, chimney, vent, or other functionally equivalent opening designed to direct or control its flow.

### (40) Garbage--Solid waste consisting ofputrescible animal and vegetable waste materials resulting from the handling, preparation, cooking, and consumption offood, including waste materials from markets, storage facilities, and handling and sale ofproduce and other food products.

(41) Gasoline--Any petroleum distillate having a Reid vapor pressure offour pounds per square inch (27.6 kilopascals) or greater that is produced for use as a motor fuel, and is commonly called gasoline.

(42) Hazardous wastes--Any solid waste identified or listed as ahazardous waste by 

### the admll1lstrator ofthe United States Environmental Protection Agency underthe federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Act, 42 United States Code, §§690

### I e! seq.. 

### as amended.

(43) Heatset (used 

### in offset lithographic printing)--Any operation where heat is required to evaporate ink oil from the printing ink. Hot air dryers are used to deliverthe heat.

(44) High-bake coatings--Coatings designed to cure at temperatures above 194 degrees Fahrenheit.

(45) High-volume low-pressure spray guns--Equipment used to apply coatings by

means ofa spray gun that operates between 0.1 and 10.0 pounds per square inch gauge airpressure measured at the aircap.
(46) Incinerator--An enclosed combustion apparatus and attachments that is used in the process ofburning wastes for the primary purpose ofreducing its volume and weight by removing the

### combustibles ofthe waste and is equipped with aflue for conductingproducts ofcombustion to the atmosphere. Any combustion device thatbums 10% ormore ofsolid waste on atotal British thermal unit (Btu) heat input basis averaged over anyone-hourperiod is considered to be an incinerator. A combustion device without instrumentation ormethodology to determine hourly flow rates ofsolid waste andburning 1.0% ormore ofsolid waste on atotal Btu heatinputbasis averaged annually is also considered to be an incinerator. An open-trenchtype (with closed ends) combustion unit maybe considered an incinerator when approvedby the executive director. Devicesburning untreated wood scraps, waste wood, or sludge from the treatment ofwastewaterfrom the process mills as aprimary fuel for heatrecovery are not included underthis definition. Combustion devices permitted underthis title as combustion devices other than incinerators will notbe consideredincinerators for application ofany rule within this title provided they are installed and operated in compliance withthe condition ofall applicablepermits. (47) Industrial boiJer--A

### boilerlocated on the site ofa facility engaged in a manufacturing process where substances are transformed into newproducts, including the component parts ofproducts, by mechanical or chemical processes.

(48) Industrial 

### furnace--Cement kilns; lime kilns; aggregate kilns; phosphate kilns; coke
ovens; blastfurnaces; smelting, melting, orrefining furnaces, including pyrometallurgical devices such as cupolas, reverberatorfurnaces, sintering machines, roasters, or foundry furnaces; titanium dioxide chloride process oxidationreactors; methanereforming furnaces; pulping recovery furnaces; combustion devices used in therecovery ofsulfur values from spent sulfuric acid; and otherdevices the commission may list.

(49) Industrial solid 

### waste--Solid wasteresulting from, or incidental to, any process of industry ormanufacturing, ormining or agricultural operations, classified as follows.

### (A) Class 1 industrial solid waste or Classl waste is any industrial solid waste designated as Class 1 by the executive director as any industrial solid waste or mixture ofindustrial solid
wastes that because ofits concentration orphysical or chemical characteristics is toxic, corrosive, flammable, a strong sensitizer or irritant, a generator ofsudden pressure by decomposition, heat, or other
means, and may pose a substantial present orpotential danger to human health or the environment when improperly processed, stored, transported, or otherwise managed, including hazardous industrial waste, as defined in §335.1 and §3J5.505 ofthis title (relating to Definitions and Class I Waste Determination).

(B) Class 2 industrial solid waste is any individual solid waste or combination of industrial solid wastes that cannot be described as Class 1 or Class 3, as defined in §335.506 ofthis title (relating to Class 2 Waste Determination).

(C) Class 3 industrial solid waste is any inert and essentially insoluble industrial solid waste, including materials such as rock, brick, glass, dirt, and certain plastics and rubber, etc., that

are not readdy decomposable as defined in §335.507 ofthis title (relating to Class 3 Waste Determination).

(50) 

## Internal floating cover--A cover or floating roofin a fixed rooftank thatrests upon

or is floated upon the liquid being contained, and is equipped with a closure seal or seals to close the space between the cover edge and tank shell.

(51) Leak--A volatile organic compound concentration greater than 10,000 parts per million by volume or the amount specified by applicable rule, whicheveris lower; or the dripping or exuding ofprocess fluid based on sight, smell, or sound.

### (52) 

### Liquid fuel--A liquid combustible mixture, not derived from hazardous waste, with

a heating value ofat least5,000 British thermal units per pound.

(53) 

### Liquid-mounted seal--A primary seal mounted in continuous contact with the liquid between the tank wall and the floating roofaround the circumference ofthe tank.

(54) 

### Maintenance area--A geographic region ofthe statepreviously designated nonattainment undertheFederal Clean Air Act Amendments of 1990 and subsequently redesignated to attainment subjectto therequirement to develop a maintenance plan under42 United States Code, §7505a. The following are the maintenance areas within the state:



### (A) Victoria Ozone Maintenance Area 60 

### (FederalRegister(FR) 12453)

- Victoria County; and

(B) Collin County Lead Maintenance Area (64 FR 55421)

- Portion ofCollin County. Eastside: Starting at the intersection ofSouth Fifth Street and the fence line approximately 1,000 feet south ofthe Exide property line going nOlih to the intersection ofSouthFifth Street and Eubanks Street; Northside: Proceeding west on Eubanks to the Burlington Railroad tracks; Westside: Along the Burlington Railroad tracks to the fence line approximately 1,000 feet south ofthe Exide property line; Southside: Fence line approximately 1,000 feet south ofthe Exide property line.

(55) 

### Maintenance plan--A revision to the applicable state implementation plan, meeting the requirements of42 United States Code, §7505a.

### (56) Marine vessel--Any watercraft used, or capable ofbeing used, as a means of transportation on water, and that is constructed or adapted to carry, or thatcarries, oil, gasoline, or other volatile organic liquid in bulkas a cargo or cargo residue.

(57) Mechanical shoe seal--A metal sheet that is held vertically against the storage tank wall hy springs or weighted levers and is connected by braces to the floating roof. A flexible coated fabric (envelope) spans the annular space between the metal sheet and the floating roof.

(58) Medical waste--Waste materials identified hy the Department ofState Health Services as "special waste from health care-related facilities" and those waste materials commingled and discarded with special waste from health care-related facilities.

(59) Metropolitan Planning Organization--That organization designated as heing responsible, together with the state, for conducting the continuing, cooperative, and comprehensive planning process under 23 United States Code (USC), 

### § 134 and 49 USC, 

### §1607.

(60) Mobile emissions reduction credit--The credit obtained from an enforceable, permanent, quantifiable, and surplus (to other federal and state rules) emissions reduction generated by a mobile source as set forth in Chapter 114, Subchapter F ofthis title (relating to Vehicle Retirement and Mobile Emission Reduction Credits), and that has been hanked in accordance with Subchapter H, Division 1 ofthis chapter.

(61) Motor vehicle--A self-propelled vehicle designed for transporting persons or property on a stTeet or highway.

### (62) Motor vehicle fuel dispensing 

### facility--Any site where gasoline is dispensed to motor vehicle fuel tanks from stationary storage tanks.

(63) Municipal solid 

### waste--Solid wasteresulting from, or incidental to, municipal, community, commercial, institutional, andrecreational activities, including garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and all other solid waste except industrial solid waste.

(64) Municipal solid 

### waste facility--A11 contiguous land, structures, other appurtenances, and improvements on the land used forprocessing, storing, or disposing ofsolid waste. A facility may be publicly orprivately owned and may consist ofseveral processing, storage, or disposal operational units, e.g., one or more landfills, surface impoundments, or combinations ofthem.

(65) Municipal solid 

### waste landfill--A 

### discrete area ofland or an excavation that receives household waste and that is not a land application unit, surface impoundment, injection well, or wastepile, as those terms are defined under40 Code ofFederal Regulations §257.2. A municipal solid waste landfill (MSWLF) unit also mayreceive othertypes ofResource Conservation and Recovery Act Subtitle D wastes, such as commercial solid waste, nonhazardous sludge, conditionally exempt smallquantity generatorwaste, and industrial solid waste. Such alandfill may be publicly orprivately owned. An MSWLF unit may be a new MSWLF unit, an existing MSWLF unit, or a lateral expansion.

(66) National ambient air quality 

### standard--Those standards established under42 United States Code, §7409, including standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhalable particulate matter, and sulfur dioxide.

### (67) Net ground-level concentration--The concentration ofan air contaminant as measured at or beyond the property boundary minus the representative concentration flowing onto a property as measured at any point. Where there is no expected influence ofthe air contaminant flowing
onto aproperty from other sources, the net ground level concentration may be determined by a measurement at or beyond the property boundary.

(68) Ncw sourcc--Any stationary source, the construction or modification ofwhich was commenced after March 5, 1972.

(69) Nitrogen oxides (NOx)--The sum ofthe nitrIC oxide and nitrogen dioxide mthe flue gas or emission point, collectively expressed as nitrogen dioxide.

(70) Nonattainment area--A defined region within the state that is designatedby the United States Environmental Protection Agency (EPA) as failing to meetthe national ambient airquality standard for a pollutant for which a standard eXists. The EPA will designate the area as nonattainment under the provisions of42 United States Code, §7407(d). For the official list and boundaries of
nonattamment areas, see 40 Code ofFederal Regulations Part 81 and pertinent

### Federal Register(FR) notices. The following areas comprise the nonattainment areas within the state for all national ambient all' 

### quality standards (NAAQS). EPA has indicated that it will revoke the one-hour ozone standard in full, including the associated designations and classifications, on June 15,2005, which is one year following the effective date ofthe designations for the eight-hourNAAQS ofJune 15,2004.

(A) Carbon monoxide (CO). EI Paso CO nonattainment area (56 FR 56694)-- Classified as a Moderate CO nonattainment area with a design value less than orequal to 12.7 parts per million. Portion ofE1 Paso County. Portion ofthe city limits ofEI Paso: Thatportion ofthe City ofEl

### Pasobounded on the northby Highway 10 from Porfirio Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to the SouthernPacific Railroad lines, the Southern Pacific Railroad lines from Raynolds Streetto Highway 62, Highway 62 from the Southern PacifIc Railroad lines to Highway 20, and Highway 20 from Highway 62 to Polo Inn Road. Bounded on the eastby Polo Inn Road from Highway 20 to the Texas-Mexico border. Bounded on the southby the Texas-Mexico border from Polo Inn Road to Porfirio Diaz Street. Bounded on the westby Porfirio Diaz Streetfrom the Texas-Mexico border to Highway 10.

(B) Inhalable particulate matter (PM 10)' 

### El Paso PM 10 

### nonattainment area (56 FR 56694)--Classified as aModerate PM 10 

### nonattainment area. Portion ofEl Paso County that comprises the EI Paso city limitboundaries as they existed on November 15, 1990.

(C) Lead. No designated nonattainment areas.

(D) Nitrogen dioxide. No designated nonattainment areas.

(E) Ozone (one-hour).

(i) Houston-Galveston-Brazoria (HGB) one-hour ozone nonattainment

area (56 FR 56694)

- Classified as a Severe-17 ozone nonattainment area. Consists ofBrazoria, Chambers, FortBend, Galveston, Harris, LibeIiy, Montgomery, and Waller Counties. (ii) El Paso one-hour ozone nonattainl11ent area (56 FR 56694)

- Classified as a Serious ozone nonattainment area. Consists ofEl Paso County.

### (iii) Beaumont-Port Arthur (BPA) one-hour ozone nonattainment area (69 FR 16483)

- Classified as a Serious ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties.

(iv) Dallas-FortWorth one-hour ozone nonattainment area (63 FR 8128)

- Classified as a Serious ozone nonattainment area. Consists ofCollin, Dallas, Denton, and Tarrant Counties.

(F) Ozone (eight-hour).

(i) 

### HGB eight-hourozone nonattainment area (69 FR 23936)

- Classified

as a Moderate ozone nonattainment area. Consists ofBrazoria, Chambers, FortBend, Galveston, Harris, Libeliy, Montgomery, and WallerCounties.

(ii) BPA eight-hour ozone nonattainment area (69 FR 23936)

- Classified as a Marginal ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties.

(iii) Dallas-Fort Worth eight-hourozone nonattainment area (69 FR 23936)

- Classified as a Moderate ozone nonattainment area. Consists ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties. (iv) San Antonio eight-hour ozone nonattainment area (69 FR 23936)

- Classified under the Federal Clean Air Act, Title I, Part D, Subpart 1 (42 United States Code, §7502), nonattainment deferred to September 30,2005, or as extended by EPA.

(G) Sulfurdioxide. No designated nonattainment areas.

### (71) Non-reportable 

### emissions event--Any emissions event that in any 24-hourperiod does notresult in an unauthorized emission from any emissions point equal to or in excess ofthe reportable quantity as defined in this section.

(72) Opacity--The degree to which an emission ofair contaminants obstructs the transmission oflight expressed as thepercentage oflight obstructed as measured by an optical instrument

ortrained observer.

(73) Open-top vapor 

### degreasing--A batch solvent cleaningprocess that is open to the airand that uses boiling solvent to create solventvapor used to clean or dry parts through condensation of the hot solvent vapors onthe parts.

(74) Outdoor 

### burning--Any fire or smoke-producingprocess that is not conducted in a combustion unit.

(75) Particulate 

### matter--Any material, except uncombined water, that exists as a solid

orliquid in the atmosphere or in a gas stream at standard conditions. (76) Particulate matter 

### emissions--All finely-divided solid or liquid material, otherthan uncombined water, emitted to the ambient air as measured by United States Environmental Protection Agency Reference Method 5, as specified at 40 Code ofFederal Regulations (CFR) Part 60, Appendix A, modified to include particulate caughtby an impinger train; by an equivalent or alternative method, as specified at 40 CFR Part 51; orby atest method specified in an approved state implementation plan.

### (77) Petroleum retinery--Any facility engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils, lubricants, or other products through distillation ofcrude oil, or through the redistillation, cracking, extraction, reforming, or otherprocessing ofunfinished petroleum derivatives.

(78) PMw--Particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers as measured by a reference method based on 40 Code ofFederal Regulations (CFR) Part 50, Appendix 

### J, and designated in accordance with 40 CFR Part 53, or by an equivalent method designated with that Part 53

(79) PM lO 

### emissions--Finely-divided solid or liquid material with an aerodynamic diameter less than orequal to a nominal ten micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or alternative method specified in 40 Code ofFederal Regulations Part 51, or by a test method specified in an approved state implementation plan.

(80) Polychlorinated biphcnyl compound--A compound subject to 40 Code ofFederal Regulations Part 761. (81) Process or processes--Any action, operation, or treatment embracing chemical, commercial, industrial, ormanufacturing factors such as combustion units, kilns, stills, dryers, roasters, and equipment used in connection therewith, and all other methods or forms ofmanufacturing or processing thatmay emit smoke, particulate matter, gaseous matter, or visible emissions.

(82) Process weight pcr hour--"Process weight" is the total weight ofall materials introduced orrecirculated into any specific process that may cause any discharge ofair contaminants into the atmosphere. Solid fuels charged into the process will be considered as part ofthe process weight, but

### liquid and gaseous fuels and combustion air will not. The "process weight per hour" will be derived by dividing the total process weightby the number ofhours in one complete operation from the beginning of any given process to the completion thereof, excluding any time during that the equipment used to conductthe process is idle. For continuous operation, the "process weight per hour" will be derived by dividing the total process weight for a 24-hourperiod by 24.

(83) Property--Allland under common control or ownership coupled with all improvements on such land, and all fixed or movable objects on such land, or any vessel on the waters of this state.

(84) Reasonable further progress--Annual incremental reductions in emissions·ofthe applicable air contaminant that are sufficient to provide for attainment ofthe applicable national ambient air quality standard in the designated nonattainment areas by the date required in the state implementation plan.

(85) Regulated entity--All regulated units, facilities, equipment, structures, or sources at

one street address orlocation that are owned or operated by the same person. The tern1 includes any property under common ownership or control identified in apermit or used in conjunction with the regulated activity at the same street address orlocation. Owners or operators ofpipelines, gathering lines, and flowlines under common ownership or control in aparticularcounty may be treated as a single regulated entity for purposes ofassessment andregulation ofemissions events.

(86) Remote reservoir cold solvent cleaning--Any cold solvent cleaning operation in which liquid solvent is pumped to a sink-like work area that drains solvent back into an enclosed container whileparts are being cleaned, allowing no solvent to pool in the work area.

### (87) Reportable emissions event--Any emissions event that in any 24-hourperiod, results in an unauthorized emission from any emissions point equal to or in excess ofthe reportable quantity as defined in this section.

(88) Reportable quantity (RQ)--ls as follows:

(A) for individual air contaminant compounds and specifically listed mixtures by

name or Chemical Abstracts Service (CAS) number, either:

(i) 

### the lowest ofthe quantities:
(I) listed in 40 Code ofFederal Regulations (CFR) Part 302, Table 302.4, the column "final RQ"; (II) 

### listed in 40 CFR Part 355, Appendix A, the column "Reportable Quantity"; or

(Ill) listed as follows:

(-a-) acetaldehyde

- 1,000 pounds, except in the Houston-Galveston-Brazoria (HGB) and Beaumont-Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ mllst be 100 pounds;

(-b-) butanes (any isomer)

- 5,000 pounds;

### (-c-) butenes (any isomer, except 1,3-butadiene)

- 5,000 pounds, exceptin the HGB and BPA ozone nonattainment areas as defined inparagraph (70)(E)(i) and (iii) ofthis section, where the RQ mustbe 100pounds;

(-d-) carbon monoxide

- 5,000 pounds;

(-e-) l-chloro-l,l-difluoroethane (HCFC-142b)

- 5,000 pounds;

(-f-) chlorodifluoromethane (HCFC-22)

- 5,000 pounds;

(-g-) l-chloro-I-fluoroethane (HCFC-15Ia)

- 5,000 pounds; (-h-) chlorofluoromethane (HCFC-31)

- 5,000 pounds;

(-i-) chloropentafluoroethane (CFC-115)

- 5,000 pounds;

(-j-) 2-chloro-l, 1,1 ,2-tetrafluoroethane (HCFC-124)

- 5,000 pounds;

(-k-) l-chloro-I,1,2,2 tetTafluoroethane (HCFC-124a)- 5,000 pounds;

(-1-) 1,U ,2,3,4,4,5,5,5-decafluoropentane (HFC 43- 10mee)

- 5,000 pounds;

### pounds;

225ca)

- 5,000 pounds;

225cb)

- 5,000 pounds;

5,000 pounds;

pounds;

5,000 pounds; (-m-) decanes (any isomer)

- 5,000 pounds;

(-n-) I,I-dichloro-I-fluoroethane (HCFC-14Ib)

- 5,000

(-0-) 3,3-dichloro-l,I,2,2-pentafluoropropane (HCFC-

(-p-) I,3-dichloro-l,I,2,2,3-pentafluoropropane (lICFC-

(-q-) 1,2-dichloro-I,1 ,2,2-tetrafluoroethane (CFR-114)-

(-r-) 1,1- dichlorotetTafluoroethane (CFC-114a)

- 5,000

(-s-) I,2-dichloro-l,I,2-trifluoroethane (HCFC-123a)

-

(-t-) I,I-difluoroethane (HFC-152a)

- 5,000 pounds;

(-u-) difluoromethane (HFC-32)

- 5,000 pounds;

### (-v-) ethanol- 5,000 pounds;

(-w-) ethylene

- 5,000 pounds, exceptinthe HGB and BPA ozone nonattainment areas as defined inparagraph (70)(E)(i) and (iii) ofthis section, where the RQ
mustbe 100pounds;

(-x-) ethylfluoride (HFC-161)

- 5,000 pounds;

(-y -) 1,1,1,2,3,3,3-heptat1uoropropane (HFC-227ea);

(-z-) 1,1,1,3,3,3-hexat1uoropropane (HFC-236fa)

- 5,000 pounds;

(-aa-) 1,1,1,2,3,3-hexat1uoropropane (HFC-236ea)- 5,000pounds;

(-bb-) hexanes (any isomer)

- 5,000 pounds;

(-cc-) isopropyl alcohol

- 5,000 pounds;

(-dd-) mineral spirits

- 5,000 pounds;

(-ee-) octanes (any isomer)

- 5,000 pounds;

### (-ff-) oxides ofnitrogen

- 200 pounds in ozone nonattainment, ozone maintenance, early action compact areas, Nueces County, and San Patricio County, and 5,000 pounds In 

### all other areas ofthe state, which should be used instead ofthe RQs for nitTogen oxide and nitrogen dioxide provided in 40 CFR Part 302, Table 302.4, the column "final RQ";

(-gg-) pentachlorot1uoroethane (CFR-l !!)
- 

### 5,000 pounds; (-hh-) 1, 

### 1,1 ,3,3-pentafluorobutane (HFC-3G5mfc)

- 5,000 pounds; (-il-) pentafluoroethane (HFC-125)

- 5,000 pounds;


### (-jj-) 

### 1,1 ,2,2,3-pentafluoropropane (HFC-245ca)

- 5,000 pounds;

(-kk-) 

### 1,1 ,2,3,3-pentalluoropropane (HFC-245ea)

- 5,000 pounds;

(-11-) 

### 1,1,1 ,2,3-pentafluoropropane (HFC-245eb)

- 5,000 pounds;

(-mm-) 

### 1,1,1 ,3,3-pentafluoropropane (HFC-245fa)

- 5,000 pounds;

(-nn-) pentanes (any isomer)

- 5,000 pounds;

### (-00-) propane - 5,000 pounds;

(-pp-) propylene

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined inparagraph (70)(E)(i) and (iii) ofthis section, where the RQ
mustbe 100 pounds;

(-qq-) 1,1,2,2-terachlorodifluoroethane (CFR -112)- 5,000pounds;

(-rr-) 1,1,l,2-tetrachlorodifluoroethane (CFC-112a)- 5,000pounds;

(-ss-) 1,1 ,2,2-tetrafluoroethane (HFC-134)

- 5,000 pounds;

(-tt-) 1,1,1 ,2-tetrafluoroethane (HFC-134a)

- 5,000 pounds;

(-uu-) 1,1 ,2-trichloro-l,2)-trifluoroethane (CFR-I13)

- 5,000pounds;

(-vv-) 1,1,I-trichloro- 2,2,2- trilfloroethane (CFC- 113a)

- 5,000pounds;

### (-ww-) 1,1,I-trifluoro-2,2-dichloroethane (HCFC-123)- 5,000 pounds;

(-xx-) 1,I, I-trifluoroethane (HFC-143a)

- 5,000 pounds;



### (-yy-) trinuoromethane (HFC-23)

- 5,000 pounds; or

(-zz-) toluene

- 1,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ
must be 100 pounds;

(ii) ifnot listed in clause (i) ofthis subparagraph, 100 pounds;

(B) for mixtures ofair contaminant compounds:

(i) where the relative amount ofIndividual air contaminant compounds is known through common process knowledge or prior engineering analysis or testing, any amount ofan individual air contaminant compound that equals or exceeds the amount specified in subparagraph (A) of this paragraph;

(ii) where the relative amount ofindivIdual air contaminant compounds in subparagraph (A)(i) ofthis paragraph is not known, any amount ofthe mixture that equals or exceeds the amount for any single air contaminant compound that is present in the mixture and listed in subparagraph (A)(i) ofthis paragraph;

### (iii) where each ofthe individual air contaminant compounds listed in subparagraph (A)(i) ofthis paragraph are known to be less than 0.02% by weight ofthe mixture, and each ofthe otherindividual air contaminant compounds covered by subparagraph (A)(ii) ofthis paragraph are known to be less than 2.0% by weight ofthe mixture, any total amount ofthe mixture ofair contaminant compounds greater than or equal to 5,000 pounds; or

(iv) where natural gas excluding carbon dioxide, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen or air emissions from crude oil are known to be in an amount greater than or equal to 5,000 pounds orthe associated hydrogen sulfide and mercaptans in atotal
amountgreater than 100pounds, whichever occurs first;

(C) 

### for opacity from boilers and combustionturbines as defined in this section fueled by natural gas, coal, lignite, wood, fuel oil containing hazardous airpollutants at a concentration of less than 0.02% by weight, opacity that is equal to or exceeds 15 additional percentage points above the applicable limit, averaged over a six-minute period. Opacity is the only RQ applicable to boilers and combustion turbines described in this paragraph; or

(D) for facilities where air contaminant compounds are measured directly by a continuous emission monitoring system providing updated readings at a minimum IS-minute interval an amount, approved by the executive director based on any relevant conditions and a screening model, that would bereported priorto ground level concentrations reaching at any distancebeyond the closest regulated entityproperty line:

(i) less than one-halfofany applicable ambient air standards; and

### (ii) less than two times the concentration ofapplicable air emission limitations.

(89) Rubbish--Nonputrescible solid waste, consisting ofboth combustible and noncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, furniture, rubber, plastics, yard trimmings, leaves, and similar materials. Noncombustible rubbish includes glass, crockery, tin cans, aluminum cans, metal furniture, and like materials that will not burn at ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit).

(90) 

### Scheduled maintenance, startup, 

### or shutdown activity--For activities with unauthorized emissions that are expected to exceed areportable quantity (RQ), a scheduled maintenance, startup, or shutdown activity is an activity that the owner or operator ofthe regulated entity whether performing or otherwise affected by the activity, provides priornotice and a final report as required by §I0 1.211 ofthis title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements); the notice or final report includes the information required in 

### § 101.211 of this title; and thc actual unauthorized cmissions from the activity do not exceed the emissions estimates submitted in the initial notification by more than an RQ. For activities with unauthorized emissions that

are not expected to, and do not, exceed an RQ, a scheduled maintenance, startup, or shutdown activity is

one that is recorded as required by § 101.21 I ofthis title. Expected excess opacity events as described in 

## §I01.20I(e) ofthis title (relating to Emissions Event Reporting and Recordkeeping Requirements) resulting from scheduled maintenance, startup, or shutdown activities are those that provide prior notice (ifrequired), and are recorded and reported as required by § 1OJ .211 ofthis title.

### (91) 

## Sludge--Any solid or semi-solid, or liquid waste generated from amunicipal, commercial, orindustrial wastewater treatmentplant; water supply treatment plant, exclusive ofthe treated effluent from a wastewater treatmentplant; orairpollution control equipment.

(92) Smoke--Small gas-bornparticles resulting from incomplete combustion consisting predominately ofcarbon and othercombustible material and present in sufficientquantity to be visible.

(93) 

## Solid waste--Garbage, rubbish, refuse, sludge from a waste watertreatmentplant,
water supply treatmentplant, orairpollution control equipment, and other discarded material, including solid, liquid, semisolid, orcontainerized gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations and from community and institutional activities. The
term does not include:

(A) solid or dissolved material in domestic sewage, or solid ordissolved material in irrigationreturn flows, or industrial discharges subjectto regulation by permit issued under the Texas Water Code, Chapter 26;

(B) soil, dirt, rock, sand, and othernatural or man-made inert solid materials used
to fill land, ifthe object ofthe fiJ] is to make the land suitable for the construction ofsurface improvements; or

(C) waste materials thatresult from activities associated with the exploration, development, orproduction ofoil or gas, orgeothermal resources, and other substance or material regulated by the Railroad Commission ofTexas underNatural Resources Code, §91.1 0I, unless the waste, substance, ormaterial results from activities associated with gasoline plants, natural gas liquids

### processingplants, pressure maintenance plants, orrepressurizing plants and is hazardous waste as defined by the administrator ofthe United States Environmental Protection Agency underthe federal SolidWaste Disposal Act, as amended by Resource Conservation andRecoveryAct, as amended (42 United States Code, §§690I etseq.).

(94) Sour crude--A crude oil thatwill emit a sour gas when in equilibrium at atmospheric pressure.

(95) Sour gas--Any natural gas containing more than 1.5 grains ofhydrogen sulfide per 100 cubic feet, ormore than 30 grains oftotal sulfurper 100 cubic feet.

(96) Source--Apoint oforigin ofair contaminants, whetherprivately orpublicly owned

or operated. Upon request ofa source owner, the executive director shall determine whethermultiple processes emitting aircontaminants from a singlepoint ofemission willbetreated as a single source or as multiple sources.

(97) Specialwastefrom health care-related facilities--A solid waste that ifimproperly treated orhandled, may serve to transmit infectious disease(s) and that is comprised ofthe following: animal waste, bulkblood and blood products, microbiological waste, pathological waste, and sharps.

(98) Standard conditions--A condition at atemperature of68 degrees Fahrenheit (20 degrees Centigrade) and apressure of14.7 pounds per square inch absolute (101.3 kiloPascals).

(99) Standard metropolitan statistical area--An area consisting ofa county orone or
more contiguous counties that is officially so designated by the United States Bureau ofthe Budget.

### (100) Submerged fill 

### pipe--A fill pipe that extends from the top ofa tank to have a maximumclearance ofsix inches (15.2 centimeters) from the bottom or, when applied to a tank that is loaded from the side, thathas a discharge opening entirely submerged when the pipe used to withdraw liquid from the tank can no longer withdraw liquid in normal operation.

(101) Sulfur compounds--All inorganic ororganic chemicals having an atom or atoms ofsulfurin their chemical structure.

(102) Sulfuric acid mist/sulfuric acid--Emissions ofsulfuric acid mist and sulfuric acid

are considered to be the same air contaminant calculated as H2

### S04 

### and must include sulfuric acid liquid mist, sulfurtrioxide, and sulfuric acid vapor as measured by TestMethod 8 in 40 Code ofFederal Regulations Part 60, Appendix A.

(103) Sweet crude oil and gas--Those crude petroleumhydrocarbons that are not "sour"

as defined in this section.

(104) Total suspended particulate--Particulate matteras measured by the method described in40 Code ofFederal Regulations Part 50, Appendix B.

(105) Transfer efficiency--The amount ofcoating solids deposited onto the surface or a part ofproductdivided by the total amount ofcoating solids delivered to the coating application system.

### (106) True vapor 

### pressure--The absolute aggregate partial vaporpressure, measured in pounds persquare inch absolute, ofall volatile organic compounds atthe temperature ofstorage, handling, orprocessing.

(107) Unauthorized 

### emissions--Emissions ofany air contaminant except carbon dioxide, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen that exceed any air emission limitation in apennit, rule, ororderofthe commission oras authorized by Texas Clean AirAct, §382.0518(g).

(108) Unplanned maintenance, startup, or shutdown 

### activity--For activities with unauthorized emissions thatare expected to exceed areportable quantity or with excess opacity, an unplanned maintenance, startup, or shutdown activity is:

(A) a startup or shutdown that was notpart ofnonnal orroutine facility operations, is unpredictable as to timing, and is not the type ofeventnonnally authorized bypennit; or
(B) amaintenance activity that arises from sudden and unforeseeable events beyond the control ofthe operatorthatrequires the immediate corrective action to minimize oravoid an upsetormalfunction.

(109) Upset 

### event--An unplanned and unavoidablebreakdown orexcursion ofaprocess
oroperation thatresults in unauthorized emissions. A maintenance, startup, or shutdown activity that was reported under §I01.211 ofthis title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements), but had emissions that exceeded thereported amount by

### more thana reportable quantity due to an unplanned and unavoidable breakdown or excursion ofa process or operation is an upset event.

(110) Utility boiler--A 

### boilerused toproduce electric power, steam, orheated or cooled air, orother gases or fluids for sale.

(II I) Vapor combustor--A 

### partially enclosed combustion device used to destroy volatile organic compounds by smokeless combustion withoutextracting energy in the form ofprocess heat or steam. The combustion flame may be partially visible, but at no time does the device operate with an uncontrolled flame. Auxiliary fuel and/or a flame air control damping systemthatcan operate at all times
to control the air/fuel mixture to the combustor's flame zone, may be required to ensure smokeless combustion during operation.

(112) Vapor-mounted 

### seal--A primary seal mounted so there is an annular space underneath the seal. The annularvapor space is bounded by the bottom ofthe primary seal, the tankwall, the liquid surface, and the floating roofor cover.

(113) Vent--Any duct, stack, chimney, flue, conduit, orother device used to conduct air contaminants into the atmosphere.

(114) Visible 

### emissions--Particulate orgaseous matterthatcan be detected by the human eye. The radiant energy from an open flame is not considered a visible emission underthis definition.

(115) Volatile organic compound--As 

### defined in 40 Code ofFederal Regulations §51.100(s), except §51.100(s)(2)

- (4), as amended on November 29, 2004 (69 FR 69290).

### Ll.lQ) 

### Volatile organic compound (VOC) water separator--Anytank, box, sump, or othercontainerin which any

# vae, floating on or contained in water entering such tank, box, sump, or othercontainer, is physically separated andremov.ed from such waterpriorto outfall, drainage, or recovery ofsuch water.

### SUBCHAPTER H: EMISSIONS BANKING AND TRADING DIVISION 1: EMISSION CREDIT BANKING AND TRADING §101.302, §101.306



## §101.302. General Provisions.

(a) Applicable pol1utants. Reductions ofcriteria pol1utants, excluding lead, orprecursors of criteriapoIIutants for which an area is designated nonattainment, may qualify as emission credits. Reductions ofone pol1utantmay not be used to meet the requirements for anotherpol1utant, unless urban airshed modeling demonstrates that one ozone precursor may be substituted for another, subjectto executive director and United States Environmental Protection Agency (EPA) approval.

(b) Eligible generatorcategories. The following categories are eligible to generate emission credits:

(1) facilities, including area sources;

(2) mobile sources; and

(3) any facility, including area sources, or mobile source associated with actions by federal agencies under 

### §

### I01.30 ofthis title (relating to Conformity ofGeneral Federal Actions to State Implementation Plans).

(c) Emission creditrequirements.

### (1) Emission reduction credits are certified reductions thatmeetthe following requirements:

(A) reductions mustbe enforceable, permanent, quantifiable, real, and surplus;

(B) the certified reduction must be surplus atthe time itis created, as well as when itis used;

(C) in orderto become certified, the reduction musthave occurred after themost recentyear ofemissions inventory used in the state implementation plan (SIP); and

(D) the facility's annual emissions priorto the reduction strategy must have been reported orrepresented in the emissions inventory lIsed in the SIP.

(2) Mobile emissionreduction credits are certified reductions that meet the following requirements: (A) reductions must be enforceable, permanent, quantifiable, real, and surplus;
(B) 

### the certified reduction mustbe surplus at the time itis created, as well as when itis used;

(C) in orderto become certified, the reduction musthave occurred after the most recentyear ofemissions inventory used in the SIP; (D) the mobile source's annual emissions priorto the emission credit application
musthavebeen represented in the emissions inventory used in the SIP; and

### (E) the mobile sources must have been included in the attainment demonstration baseline emissions inventory.

(3) Emission reductions from a facility ormobile source that are certified as emission credits underthis division cannot be recertified in whole or in part as credits under anotherdivision within this subchapter.

(d) Protocol.

(1) All generators or users ofemission credits shall use aprotocol that has been submitted by the executive directorto the EPA for approval, ifexisting forthe applicable facility ormobile source, to measure and calculate baseline emissions. Ifthe generatoror user wishes to deviate from aprotocol submitted by the executive director, EPA approval is required before the protocol canbe used. Protocols
mustbe used as follows.

(A) Facilities subjectto the emission specifications under §§ I J

### 7.110, 117.210, 117.310,117.410,117.1010,117.1110,117.1210, 117.1310, 117.201O,orl17.21100fthistitle(relating
to Emission Specifications for AttainmentDemonstration; Emission Specifications for Eight-Hour AttainmentDemonstration; and Emission Specifications) shall quantifyreductions in nitrogen oxide emissions using the testing and monitoring methodologies identified to show compliance with the emission specification. (B) Facilities subjectto the requirements under §§ 115.112, 115.121, 115.122, 115.162, 115.211, 115.212, 115.352, 115.421, 115.541, or 115.542 ofthis title (relating to Control Requirements; and Emission Specifications) shall quantify volatile organic compound reductions using

### the testing and monitoring methodologies identified to show compliance withthe emission specifications

orrequirements.

(C) 

### Ifthe executive directorhas not submittedaprotocol for the applicable facility ormobile source to the EPA for approval, the following requirements apply:

(i) the amount ofemission credits from a facility ormobile source, in
tons peryear, wi1l be determined and certifiedbased on quantification methodologies at leastas stringent

as the methods used to demonstrate compliance with any applicable requirements for the facility or mobile source;

(ii) the generator sha11 co11ectrelevant data sufficientto characterize the facility's or mobile source's emissions ofthe affected pollutant andthe facility's or mobile source's activity level for a11 representative phases ofoperation in orderto characterize the facility's ormobile source's baseline emissions;

(iii) facilities with continuous emissions monitoring systems or predictive emissions monitoring systems in place shall use this data in quantifying actual emissions;

(iv) the chosen quantificationprotocol mustbe made available for public
commentfor a period of30 days and must be viewable on the commission's Web site; (v) the chosen quantification protocol and any comments received during the public commentperiod shall be submitted to the EPA for a45-day adequacy review; and

### (vi) quantification protocols shall not be accepted for use with this division ifthe executive director receives a letter objecting to the use ofthe protocol from the EPA during the 45-day adequacy review or the EPA adopts disapproval ofthe protocol in the 

### FederalRegister.

(2) In the eventthatthe monitoring and testing data required underparagraph (1) ofthis subsection is missing or unavailable, the facility may report actual emissions for thatperiod oftime using these listed methods in the following order ofpreference to determine actual emissions:

(A) continuous monitoring data;

(B) periodic monitoring data;



### (C) testing data;
(D) manufacturer's data;

(E) 

### EPA Compilation of AirPollution Emission Factors (AP-42), September 2000; or

(F) material balance. (3) When quantifying actual emissions in accordance with paragraph (2) ofthis subsection, the generator shall use the most conservative method for replacing the missing data, submit thejustification for not using the methods in paragraph (1) ofthis subsection, and submit thejustification for the method used.

### (e) Credit certification.

(l) The amount ofemission credits in tons peryear will be determined and certified, to the nearest tenth ofatonperyear.

(2) Applications for certification will bereviewed in orderto determine the credibility of thereductions. Reductions determined tobe creditable will be certified by the executive director.

(3) The applicantwill be notified in writing ifthe executive director denies the emission credit application. The applicant may submit arevised application in accordance withtherequirements of this division.

(4) Ifa facility's or mobile source's actual emissions exceed its allowable emission limit, reductions ofemissions exceeding the limitmay not be certified as emission credits.

(5) Applications for certification ofemission credit fromreductions quantified under subsection (d)(l)(C) 

### ofthis section may onlybe approved upon completion ofthe public commentperiod.

(f) Geographic scope. Except as provided in §

### 101.305 ofthis title (relating to Emission Reductions Achieved Outside the United States), only emissionreductions generated in nonattainment

areas can be certified. An 

### emission creditmustbe used in the nonattainment area in which itis generated unless the user has obtainedprior written approval ofthe executive director and the EPA; and

### (l) 

### a demonstration has been made and approved by the executive director and the EPA
to show that the emissionreductions achieved in another county or stateprovide an improvementto the air quality in the county ofuse; or

(2) the emission credit was generated in anonattainment area that has an equal orhigher nonattainmentclassification than the nonattainment area ofuse, and ademonstration has been made and approved by the executive director and the EPA to show thatthe emissions from the nonattainment area where the emission creditis generated contribute to aviolation ofthe national ambient air quality standard in the nonattainment area ofuse.
(g) Recordkeeping. The generator shall maintain a copy ofall notices andbackup information submitted to the registry for a minimum offive years. The user shall maintain acopy ofall notices and backup information submitted to the creditregistry from the beginning ofthe use period and for at least five years after. The user shall also make such records available upon requesttorepresentatives ofthe executive director, EPA, and any local enforcement agency. Therecords mustinclude, butnotnecessarily be limited to:

(l) 

### the name, emission pointnumber, and facility identificationnumber ofeach facility or any other identifying number for each mobile source using emission credits;

(2) the amount ofemission credits being used by each facility or mobile source; and

(3) the specific number, name, or other identification ofemission credits used for each facility or mobile source.

### (h) Public information. All information submitted withnotices, reports, and trades regarding the nature, quantity, and sales price ofemissions associated withthe use, generation, and transferofan emission credit is public information and may notbe submitted as confidential. Any claim of confidentiality for this type ofinformation, orfailure to submit all information, may result in the rejection ofthe emission credit application. All nonconfidential notices and informationregarding the generation, availability, use, and transfer ofemission credits shall be immediatelymade available to the public.

(i) Authorization to emit. 

## An emission credit created underthis division is a limited authorization to emitthe pollutants identified in subsection (a) ofthis section, unless otherwise defined, in accordance with the provisions ofthis section, 42 United States Code, §§740l 

### et**~eq.,** 

### and Texas Health and Safety Code, Chapter382, as wellas regulations promulgated thereunder. 

## An emissioncredit does not constitute

apropertyright. Nothing in this division maybe construed to limitthe authority ofthe commission orthe EPA to terminate orlimit such authorization.

U) Programparticipation. The executive director has the authorityto prohibit an organization fromparticipating in emission credittrading either as agenerator oruser, ifthe executive director determines that the organization has violated the requirements ofthe program, orabused the privileges provided by the program.
(k) Complianceburden. Users may not transfertheir complianceburden and legal responsibilities to athird-party participant. Third-partyparticipants may only act in an advisory capacity to the user.
(I) 

### Credit ownership. The owner ofthe initial emission creditcertificate shall be the owner or operatorofthe facility ormobile source creating the emission reduction. The executive directormay approve adeviation from this subsection considering factors such as, butnot limited to:

### (1) whether an entity otherthan the owner or operator ofthe facility or mobile source incurred the cost ofthe emission reduction strategy; or

(2) whetherthe owner oroperator ofthe facility or mobile source lacks the potential to generate 1110 ton ofcredit.



### §101.306. Emission Credit Use.

(a) Uses for emission credits. Unless precluded by a commission order or a condition or conditions within an authorization underthe same commission accountnumber, emission credits may be used as the following: (1) offsets for anew source, as defined in 

## §101.1 ofthis title (related to Definitions), or major modification to an existing source;

(2) mitigation offsets for action by federa

### I agencies under § 101.30 ofthis title (relatingto Conformity ofGeneral Federal Actions to State Implementation Plans);

(3) an alternative means ofcompliance with volatile organic compound and nitrogen oxides reduction requirements to the extent allowed in Chapters 114, 115, and 117 ofthis title (relating to Control ofAirPollution from Motor Vehicles; Control ofAir Pollution from Volatile Organic Compounds; and Control ofAirPollution from Nitrogen Compounds);

### (4) reductions certified as emission credits may be used in netting by the original applicant, ifnot used, sold, reserved for use, or otherwise relied upon, as provided in §116.150 ofthis title (relating to New Major Source or MajorModification in Ozone Nonattainment Areas);

(5) an annual allocation ofallowances as provided in §101.356 and §101.399 ofthis title (relating to Allowance Banking and Trading);

(6) compliance with motorvehicle fleet requirements to the extent allowed by §114.201 ofthis title (relating to Mobile Emission Reduction Credit Program); or

(7) compliance with otherrequirements as allowable within the guidelines oflocal, state, and federal laws.

(b) Credit use calculation.

(1) The number ofemission credits neededby the user for offsets shall be determined as provided in 

### §116.150 ofthis title.

(2) For emission credits used in compliance with Chapters 114, 115, or 117 ofthis title, the number ofemission credits needed shouldbe determined according to the following equationplus an additional 10% to be retired as an environmental contribution.

Figure: 30 TAC §

### 101.306(b)(2) Calculation ofEmission Credits Needed

### Where: 

## A = 

### maximum projected annual activity level during use period EF p 

### = 

### projected emission rate per unit ofactivity during use period EF, 

## = emission rate perunit ofactivity required by Chapter 114, 115, or 117

### (3) For emission credits used to comply with §§ 117.123, 117.223, 117.320, 117.323, 117.423, 117.1020, 117.1120, or 117.1220 ofthis title (relating to Source Cap; and System Cap), the number ofemission credits needed for increasing the 30-dayrolling average emission cap or maximum daily cap should be determined according to the following equation plus an additional 10% to be retired as an environmental contribution. Figure: 30 TAC §I01.306(b)(3) Calculation ofEmission Reductions Needed for System Cap or Source Cap

Where: 

### N

## =the total number ofemission units in the source cap i 

## =eachemission unit in the source cap 

## Hi

## = actual daily heatinput, in million British thermal units (MMBtu) per day, as calculated according to §§ 117.123(b)(1) or (2), 117.223(b)(1) or (2), 117.320(c)(I)

- (3), 117.323(b)(1) or (2), 117.423(b)(1) or (2), 117.1020(c)(1) or (2), 117.1120(c)(1) or (2), or 117.1220(c)(1) or (2) ofthis title 

### R

i

### =the facility's emission factor, in pounds (lb)/MMBtu, is defined as in §§ 117.123(b)(1) or (2), 117.223(b)(I) or (2), 117.320(c)(1)

- (3), 117.323(b)(1) or (2), 117.423(b)(1) or (2), 117.1020(c)(1) or (2), 117.1120(c)(I) or (2), or 117.1220(c)(1) or (2) ofthis title 

### HII

## =the maximum daily heat input, in MMBtu per day, expected for an emission unit during the use period 

## RII

## = the maximum emission factor, in 

## Ib/MMBtu, expected for an emission unit during the use period (4) Emission credits used for compliance with any other applicable program should be detennined in accordance with the requirements ofthat program and must contain at

### least 10% extra to be retired as an environmental contribution, unless otherwise specified by that program.

(c) Notice ofintent to use emission credits.

(1) 

### For emission credits which are to be used as offsets in a New Source Review permit in accordance with Chapter 116 ofthis title (relating to Control ofAir Pollution by Permits for New Construction orModification), the emission credits mustbe identified prior to permit issuance. Priorto construction, the offsets must be provided through submittal ofacompleted EC-3 Form, Notice ofIntent to Use Emission Credits, along with the original emission credit certificate.

(2) For emission credits that are to be used for compliance with the requirements ofChapters I 14, 115, or 117 ofthis title or otherprograms, the usermust submit acompleted EC3 Form along with the original emission credit certificate, at least 90 days priorto the planned use ofthe emission credit. Emission credits may be used only afterthe executive director grants approval ofthe notice ofintent to use. The usermust also keep a copy ofthe emission credit certificate, the notice, and all backup in accordance with § I01.302(g) ofthis title (relating to General Provisions).

(3) 

### Ifthe executive director denies the facility or mobile source's use ofemission credits, any affected person by the executive director's decision may file a motion for reconsideration within 60 days ofthe denial. Notwithstanding the applicability provisions of §50.3 I(c)(7) 

### ofthis title (relating to Purpose and Applicability), the requirements of§50.39 of this title (relating to Motion for Reconsideration) shall apply. Only an affected person may file a motion for reconsideration.

### SUBCHAPTER H: EMISSIONS BANKING AND TRADING DIVISION 3: MASS EMISSIONS CAP AND TRADE PROGRAM §§101.350, 101.351, 101.353, 101.354, 101.360

§101.350. Definitions.

The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise.

(1) 

### Adjustment period--A period oftime, beginning on the first day ofoperation ofa facility and ending no more than 180 consecutive days later, used to make corrections and adjustments to achieve normal technical operating characteristics ofthe facility.

(2) Allowance--The authorization to emit one ton ofnitrogen oxides, expressed in tenths ofaton, during a control period.

(3) Authorized account representative--The responsible person who is authorized, in writing, to transfer and otherwise manage allowances.

(4) Banked allowance--An allowance which is notused to reconcile emissions in the designated year ofallocation, but which is carried forward for up to one year and noted in the compliance orbroker account as "banked."

(5) 

### Broker--A person not required to participate in the requirements ofthis division who opens an account underthis division for the purpose ofbanking and trading allowances.

### (6) Broker account--The accountwhere allowances held by abrokerare recorded. Allowances held in abroker accountmaynotbe used to satisfy compliance requirements for this division.

(7) Compliance account--The accountwhere allowances held by afacility or multiple facilities ata single site are recorded for thepurposes ofmeeting the requirements ofthis division.

(8) Control period--The I2-month periodbeginningJanuary I and ending December 31 ofeach year. The initial control periodbegins January 1,2002.

(9) Existing Facility--Anew ormodified facility that eitherhas submitted an application for apermit underChapter 116 ofthis title (relating to Control ofAirPollution by Permits forNew Construction orModification) which the executive directorhas determined to be administratively completebefore January 2,200I, orhas qualified for apermit byrule under Chapter 106 ofthis title (relating to Permits by Rule) and commenced construction before January 2, 2001.

(10) Houston-Galveston-Brazoria (HGB) ozone nonattainment area--As defined in 

## §101.1 ofthis title (relating to Definitions).

(11) Level ofactivity--The amount ofactivity at afacility measured in temlS of production, fuel use, raw materials input, or othersimilarunits.

### (12) Person--For the purpose ofissuance ofallowances under this division, a person includes an individual, apartnership oftwo ormore persons having ajointor common interest, amutual or cooperative association, or acorporation.

(13) Site--As defined in § 122.1 0 ofthis title (relating to General Definitions).

(14) 

### Uncontrolled design capacity--The maximum capacity ofafacility to emit

a pollutantwithoutregard to any enforceable orphysical operational limitations including air pollution control equipment.



### §101.351. Applicability.

(a) This division applies to all facilities which emit nitrogen oxides (NOx) in the Houston- Galveston-Brazoria ozone nonattainment area, as defined in §101.1 ofthis title (relating
to Definitions) which are subject to the emission specifications under §§ 117.31 0, 117.1210, or 117.20I0 ofthis title (relating to Emission Specifications for AttainmentDemonstration and Emission Specifications) and which are:

(1) located at a site which meets the definition ofmajor source, as defined in § I 17.10 ofthis title (relating to Definitions); or

(2) located at a site where they collectively have an uncontrolled design capacity
to emit ten tons or more peryear ofNOx.
(b) A site which met the definition ofmajor source as ofDecember 31, 2000 shall always be classified as a major source for purposes ofthis chapter. A site which did notmeet the

### definition,ofmajor source (i.e., was aminor source, or did notyet exist) on December 31, 2000, but which at any time afterDecember 31, 2000 becomes amajor source, shall from that time forward always be classified as amajor source for purposes ofthis chapter.

§101.353. Allocation ofAHowances.



### (a) Allowances will be deposited into compliance accounts according to the following equation except as provided in subsection (b) or (h) ofthis section.

Figure: 30TAC §I01.353(a)

Where: (1) A=number ofallowances rounded to tenths oftons; (2) B = the facility's baseline emission rate and is calculated as follows: (A) Forfacilities in operation priorto January 1, 1997: 

# B

# =(LAn

# *EF97)

# +(LAY8

# *EF98)

# +(LA99

# *EF99) 3(200C)

Where: LA97 

### = the facility's level ofactivity, as certified by the executive director for 1997; LA98 

### = the facility's level ofactivity, as certified by the executive director for 1998; LA99 

### = the facility's level ofactivity, as celtified by the

### executive director for 1999; EF97 

### = 

### the faciI ity's emission factor for 1997 orthe emission specifications under 

### §§ 117.31 0, 117.1210, and 117.2010 ofthis title (relating to Emission Specifications for Attainment Demonstration; and Emission Specifications) (ESAD) whichever is higher, in pounds per unit ofactivity, (notto exceed any applicable federal or state regulation, rule, orpermit limit), as certified by the executive director; EF98 

### = 

### the facility's emission factor for 1998 or the emission specifications under ESAD, whichever is higher, in pounds per unitofactivity, (notto exceed any applicable federal or state regulation, rule, orpennit limit), as certified by the executive director; EF99 

## =the facility's emission factor for 1999 orthe emission specifications under ESAD, whichever is higher, in pounds per unit ofactivity, (notto exceed any applicable federal or stateregulation, rule, orpennit limit), as certified by the executive director. (B) For existing facilities not in operationprior to January 1, 1997 and that have been in operation less than five complete consecutive calendar years beginning afterthe end ofthe adjustmentperiod and have not established two years ofbaseline data:

Where:

# B LAALLOWABLE 

# * EFALLOWABLE 

# 2000
LAAllowable 

## =The level ofactivity authorized by the executive director until such time two consecutive calendar years ofactual level ofactivity data is available; EFAllowable = 

### The emission factor or the emission specifications under ESAD, whichever is higher, authorized by the executive director until such time two consecutive calendar years ofactual emission data is available. (C) For existing facilities not in operation prior to January 1, 1997, and that have established two consecutive calendaryears ofbaseline data out ofthe first five years ofoperation following the end ofthe adjustmentperiod:

# B 

# =(LA YEAR

- 

# 1

# *EFYEAR

- 

# 1)

# +(LA YEAR

- 

# 2

# * EFYEAR

- 

# 2) 2(2000)

Where: LA Year-I

## =the facility's level ofactivity, as certified by the executive director, for the first ofany two consecutive years withinthe first five years ofoperation; LA Year-2 = 

### the facility's level ofactivity, as certified by the executive director, for the second ofany two consecutive years within the first five years ofoperation; EF Year-I = 

### the facility's emission factor orthe emission specifications under ESAD, whichever is higher, in pounds perunit ofactivity, (not to exceed any applicable federal or state regulation, rule, orpermitlimit), as certifiedby the executive director, for the first ofany two consecutive years within the first five years of operation; EF Year-2 = 

### the facility's emission factor orthe emission specifications underESAD, whichever is higher, in pounds perunit ofactivity, (notto exceed any applicable federal or state regulation, rule, orpermit limit), as certifiedby the executive director, for the second ofany two consecutive years withinthe first five years of operation. (3) X = 

### reduction factor, where: (A) For all boilers, auxiliary steamboilers, and stationary gas turbines (including ductburners used in turbine exhaust ducts) within an electric power generating system, as defined in §117.1 O(14)(A) of this title (relating to Definitions), located in the Houston-GalvestonBrazorianonattainment area: (i) for January 1,2002 throughMarch 31, 2003, X = 

### 0.00; (ii) for April 1, 2003 throughMarch 31, 2004, X = 

### 0.50; (iii) on or after April 1,2004, X = 

### 1.00; (B) For facilities subjectto the emission specifications under §

### 117.31 O(a)(1 )(A) and (B), (2)(A), (5), (8)(A)(i), (8)(B), (9)(A)(ii), (10), or (11) ofthis title: (i) for January 1,2002 throughMarch 31, 2004, X = 

### 0.00; (ii) for April 1, 2004 throughMarch 31,2005, X 

## = 0.47;

### (iii) for April 1,2005 throughMarch 31, 2006, X =0 

### 0.80; (iv) for April 1,2006 throughMarch 31, 2007, X =0 

### 0.93; (v) on and after April 1, 2007, X 

## = 1.00; (C) 

### For all other facilities: (i) for January 1,2002 through March31, 2004, X '" 0.00; (ii) for April 1,2004 through March 31, 2005, X =0 

### 0.389; (iii) for April 1,2005 through March 31, 2006, X =0 

### 0.667; (iv) for April I, 2006 through March 31, 2007, X '" 0.778; (v) on and after April 1, 2007, X =0 

### 1.00; (D) 

### Alternatively, facilities subjectto the reduction factors under subparagraph B 

### ofthis paragraph mayelect to comply withthe following: (i) for January 1,2002 through March31,2005, 

## X=O.OO; (ii) on and after April 1,2005, 

## X=l.OO. (E) Election to comply withthe alternativereduction schedule under subparagraph (D) 

### ofthis paragraph shall be made by letter to the executive director no laterthan April 1,2003. (F) For calendaryears which include two differentreduction factors, the reduction factor shall be adjusted using the appropriate ratio to reflectthe number ofmonths coveredby each reduction factor. (4) 

### LAHA =0 

### historical average level ofactivity, where: (A) For facilities in operation on orbeforeJanuary 1, 1997, the average level ofactivity, as certified by the executive director, for 1997, 1998, and 1999; or (B) For existing facilities which began operation afterJanuary 1,1997, LAHA 

### is: (i) the level ofactivity authorized by the executive directoruntil such time two consecutive calendaryears ofactual level of activity data is available, beginning after the end ofthe adjustment period; or (ii) when two complete consecutive calendaryears ofactual level of activity data is available, beginning after the end ofthe

### adjustment period, the level ofactivity becomes the average of the facility's actual level ofactivity overthose two consecutive calendaryears ofactual level ofactivity data. (5) EFfillal = 

### emission factor, as listed in §§ 117.310, 117.1210, or 117.2010 ofthis title. (6) For facilities using alternative emission specifications as allowed in §117.31O(a)(l7) or §II 

### 7.20I

### O(c)(6) ofthis title, the level ofactivity for any formula will be the lowest ofthe level ofactivity as calculated in variables (2)(A), (2)(B), orthe level ofactivity limited by an enforceable limit or commitmentnecessary to qualify for an alternative emission specification in §117.31O(a)(17) or §117.201 0(c)(6) ofthis title.

(b) For anew and/or modified facility that has submitted, under Chapter 116 ofthis title (relating to Control ofAirPollution by PermitforNew Construction ofModification), an application which the executive director has not determined to be administratively complete before January 2, 200I, 

### orhas qualified for apermitbyrule underChapter 106 ofthis title (relating to Permits by Rule) and has notcommenced construction before January 2, 2001, allowances for eachcontrol period orthe annual allocationrights shall be acquired from facilities alreadyparticipatingunder this division, orin accordance with § I

### 0l.356(g) ofthis title (relating to Allowance Banking and Trading).

(c) Ifactual emissions ofnitrogen oxides during a control period exceed the amountof allowances held in acompliance account on March 1 following the control period, allowances for the nextcontrol period will be reducedby an amount equal to the emissions exceeding the allowances in the compliance account plus an additional 10%. This does notpreclude additional enforcement action by the executive director.

(d) Allowances will be allocated by the executive director, who will deposit allowances into

### each compliance account:
(1) 

### initially, by January 1,2002; and

(2) subsequently, by January I ofeach following year.

(e) The annual deposit for any control period may be adjusted by the executive director to reflectnew orexisting state implementation plan requirements.
(f) 

### Allowances may be added or deducted by the executive director from compliance
accounts following the review ofreports required under 

### §101.359 ofthis title (relating to Reporting).

(g) The owner oroperator ofa facility may, due to extenuating circumstances, request a baseline period morerepresentative ofnormal operation as determined by the executive director. Applications for extenuating circumstances must be submitted by the owneror operator ofthe facility to the executive director:
(1) 

### no later than June 30,2001 to request an alternative three consecutive calendaryear period for facilities in operation prior to January 1, 1997;

(2) no laterthan 90 days after completion ofthe baseline period to request up to two additional calendaryears to establish a baselineperiod for facilities whose baseline as described by variable (2)(C) listed in the figure contained in subsection (a) ofthis section is notcomplete by June 30, 200I; or

### (3) at any time as authorized by the executive director.

(h) Allowances calculated under subsection (a) ofthis section will continue to be based

on historical activitylevels, despite subsequentreductions in activity levels. Ifallowances are being allocated based on allowables and the facility does not achieve two complete consecutive calendaryears ofactual level ofactivity data, then allowances will not continue to be allocated if the facility ceases operation or is not built.

§101.354. Allowance Deductions.

(a) Allowances will be deducted intenths ofaton from a site's compliance account for a control period basedupon the monitoring and testing protocols established in 

### §§] J

### 7.335, ] 17.340, 117.1235, ] 17.1240, 

### and 117.2035 ofthis title (relating to Initial Demonstration of Compliance; Continuous Demonstration ofCompliance; and Monitoring andTesting Requirements)
.
(b) Inthe eventthat the monitoring and testing datarequired under subsection (a) ofthis section is missing orunavailable, the facility may report actual emissions for that period oftime usmg the following equation or otherlisted methods in the following order to determine actual emISSIOns: continuous monitoring data; periodic monitoring data; testing data; manufacturer's data, and EPA Compilation of AirPollution Emission Factors 

### (AP-42), September2000. 

### When reporting actual emissions as required under this subsection, the facility must also submit thejustification for not usmg

### the methods in subsection (a) ofthis section and thejustification for the method used.

Figure: 30 TAC § 101.354(b) (No change.)

### Where: 

# A 

# LA Cp 

# * EF Cp 

# 2000

A 

## =Allowances to be subtracted from the compliance accountin tenths oftons LAcp = 

### the level ofactivity during the control period EFcp = 

### the emission factor for the control period in Ib ofnitrogen oxides (NO

### x) perunit ofactivity

(c) Ifthe protocol used to show compliance with this section differs from the protocol usedby the commission to establish the allocation ofallowances under 

## §] 01.353 

### ofthis title (relating to Allocation ofAllowances), the executive director may recalculate the numberofallowances allocated peryear for consistencybetween the methods.

(d) When deducting allowances from a site's compliance account for acontrol period, the executive director will deductthe allowances beginning withthe mostrecently allocated allowances before deductingbanked allowances.

(e) Allowances shall be deducted from a site's compliance account in an amount equal to the nitrogen oxides (NOx) emissions increases fr0111 facilities not subjectto an emission specification under 

## §117.3 10 

### or 

## §I 17.20

### I0 

### ofthis title (relating to Emission Specifications for AttainmentDemonstration; and Emission Specifications) whichresult from changes made after

### December 31,2000, to facilities subject to this division and 

### §117.3 1 

## O(e)(3) or 

### §117.201 

## O(n of this title. Documentation detailing these increases in NOx emissions shall be included with the submittal ofthe ECT-I Form, Annual Compliance Report.

(f) Allowances allocated in accordance with the variables in (a)(2)(B) listed in the figure contained in 

### §I01.353(a) ofthis title may only be used by the facility for which they were allocated and may not be used by other facilities at the same site during the same control period.

(g) On March I after every control period, a site shall hold a quantity ofallowances in its compliance account that is equal to or greater than the total NOx emissions emitted during the pnor control period.



### §101.360. Level ofActivity Certification.

(a) The owner or operator ofany facilitY subject to this division shall certify, no later than June 30, 200I, its historical level ofactivity by submitting to the executive director a completed ECT-3 Form, Level ofActivity Certification, along with any supporting information such as usage records, testing or monitoring data, emission factors, and production records as follows:

(I) for facilities in operation priorto January 1, 1997, the level ofactivity averaged over 1997, 1998, and 1999; (2) for new and modified facilities not in operation prior to January 1, 1997 and either have submitted, under Chapter 116 ofthis title (relating to Control ofAirPollution by Permits for New Construction orModification), an application which the executive directorhas

### determined to be administratively complete before January 2, 2001, orhave qualified for apermit by rule under Chapter 106 ofthis title (relating to Permits by Rule) and have commenced constructionbefore January 2, 2001, the level ofactivity authorized by the executive director; and

(3) fornew and modified facilities not in operation priorto January 1, 1997, that

are subjectto emission specifications under §§ 117.310, 117.1210, or 117.20I0 ofthis title (relating to Emission Specifications for AttainmentDemonstration; and Emission Specifications) thatwere first adopted afterApril 1, 2001, and eitherhave submittedunder Chapter 116ofthis title an application whichthe executive director has determined to be administratively complete within 90 days ofthe effective date ofthis emission specification, orhave qualified for apermit byrule under Chapter 106 ofthis title and have commenced construction within 90 days ofthe effective date ofthe emission specification, the level ofactivity authorized by the executive director.

(b) The owneroroperator ofany facility subjectto this division who has certified a facility's allowable level ofactivity under subsection (a)(2) ofthis section shall:
(1) 

### certify no laterthan 90 days from the end ofthe fifth yearofoperation the actual level ofactivity and actual emission factors for the two complete consecutive calendaryears chosen as abaseline by submitting to the executive director a completed ECT-3 Form, Level of Activity Certification, along with any supporting information such as usage records, testing or monitoring data, andproductionrecords; and

(2) receive no benefit ofallowances allocated based on actual operation until January 1 ofthe control period following the certification in paragraph (l) 

### ofthis subsection.

### (c) Owners or operators ofa site or facility that becomes subjectto this division on or after April 1, 2001 shall certify the level ofactivity, as determinedby the executive director, in accordance with subsections (a) and (b) ofthis section. Such certification shall be submitted no laterthan 90 days from the date the site or facility becomes subject to this division orno later than 90 days from the effective date ofthis rule, whichever is later.

### SUBCHAPTER H: EMISSIONS BANKING AND TRADING DIVISION 4: DISCRETE EMISSION CREDIT BANKINGAND TRADING §101.372, §101.376

§101.372. General Provisions.



### (a) Applicable pollutants. Reductions ofvolatile organic compounds (VOC), nitrogen oxides (NOx), 

### carbon monoxide (CO), sulfur dioxide (S02) and particulate matterwith an aerodynamic diameter ofless than or equal to anominal ten microns (PM IO) 

### may qualify as discrete emission credits as appropriate. Reductions ofother criteriapollutants are not creditable. Reductions ofone pollutantmay notbe used to meet the reductionrequirements for another pollutant, unless urban airshed modeling demonstrates that onemay be substituted for another subjectto approval by the executive director and the United States Environmental Protection Agency (EPA).

(b) Eligible generator categories. Eligible categories include the following:

(1) 

### facilities (including area sources);

(2) mobile sources; or
(3) any facility, including area sources, or mobile source associated with actions by 

### federal agencies under §101.30 

### ofthis title (relating to Conformity ofGeneral Federal Actions
to State Implementation Plans).

(c) Discreteemission creditrequirements.

### (I) To be creditable as a discrete emission reduction credit (DERC), an emission reduction must meet the following:

(A) the reduction be real, quantifiable, and surplus at the time the discrete emission credit is generated;

(B) the reduction must have occurred afterthe most recent yearof emissions inventory used in the state implementation plan 

### (SIP) forall applicable pollutants; and

(C) the facility's annual emissions priorto the reduction strategy must have been reported orrepresented in the emissions inventory used for the SIP.

(2) To be creditable as a mobile discrete emission reduction credit (MDERC), an emissionreduction must meetthe following:

(A) the reduction must be real, quantifiable, and surplus at the time it is. created; (B) the reduction must have occurred afterthe most recentyear of emissions inventory used 

### in the SIP for all applicable pollutants;

(C) 

### the mobile source's emissions must have been represented 

### in the emissions inventory used for the SIP; and

### (D) the mobile sources must have been included in the attainment demonstrationbaseline emissions inventory. Ifamobile reduction implemented is not in the baseline for emissions, this reduction does not constitute a discrete emissionreduction.

(3) Emissionreductions from afacility ormobile source which are certified as discrete emission credits underthis division cannotbe recertified in whole orin part as emission credits under another division within this subchapter.

(d) Protocol.



### (I) All generators orusers ofdiscrete emission credits must use aprotocol which has been submittedby the executive director to the EPA for approval, ifexisting for the;'i
. applicable facility ormobile source, to measure and calculate baseline emissions. Ifthe generator

oruserwishes to deviate from aprotocol submittedby the executive director, EPA approval is requiredbefore the protocol canbe used. Protocols shall be used as follows.

(A) Facilities subjectto the emission specifications under 

### §§ 117.110, 117.210,117.310,117.410,117.1010,117.1110,117.1210, 117.1310, 117.2010, 117.211O,or 117.3310 ofthis title (relating to Emission Specifications forAttainment Demonstration; Emission Specifications for Eight-HourAttainmentDemonstration; and Emission Specifications) shall quantify reductions in NO,using the testing and monitoring methodologies identified to show compliancewith the emission specification.

(B) Fac

### ilities subjectto the requirements under 

### §§115.112, I ]

### 5.12] , 115.122,115.162,115.211,115.212,115.352, 115.421, 115.541, or 115.542 ofthis title (relating
to Control Requirements; and Emission Specifications) shall quantify VOC reductions using the

### testing and monitoring methodologies identified to show compliance with the emission specifications orthe requirements.

(C) 

### Ifthe executive directorhas not submitted aprotocol for the applicable facility ormobile source to the EPA for approval, the following applies:

(i) the amount ofdiscrete emissioncredits from a facility or mobile source, in tons, will be determined and certified based on quantification methodologies at least as stringent as the methods used to demonstrate compliance with any applicable requirements for the facility or mobile source;

(ii) the generator must collectrelevantdata sufficientto characterize the facility's or mobile source's emissions ofthe affected pollutantand the facility's

or mobile source's activity level for all representative phases ofoperation in orderto characterize the facility's or mobile source's baseline emissions;

(iii) facilities with continuous emissions monitoring systems or predictive emissions monitoring systems in place shall use this datain quantifying actual emlsslOns;

(iv) the chosen quantification protocol shall be made available for public comment for aperiod of30 days and shall be viewable 011 

### the commission's Web site;

(v) the chosen quantification protocol and any comments received during the public commentperiod shall, upon approval by the executive director, be submitted to the EPA for a 45-day adequacy review; and

### (vi) quantification protocols shall notbe accepted for use with
. this division (relating to Discrete Emission Credit Banking and Trading) ifthe executive director receives aletter objecting to the use ofthe protocol from the EPA during the 45-day adequacy review orthe EPAproposes disapproval ofthe protocol in the 

### FederalRegister.

(2) In the event thatthe monitoring and testing datarequired underparagraph (1) ofthis subsection is missing orunavailable, the facility mayreport actual emissions forthat period oftime usingthese listed methods in the following order ofpreference to determine actual emIsSIOns:

(A) continuous monitoring data;

(B) periodic monitoring data;

(C) testing data;

(D) manufacturer's data;

(E) 

### EPA Compilation of AirPollution Emission Factors (AP-42), September2000; or

(F) material balance.

(3) When quantifying actual emissions in accordance with paragraph (2) ofthis subsection, the generator shall use the most conservative method for replacing the missing data,

### submit thejustification for not using the methods in paragraph (I) ofthis subsection, and submit thejustification for the method used.

(e) Creditcertification.

(I) The amount ofdiscrete emission credits shall berounded down to the nearest tenth ofa ton when generated and shall be rounded up to the nearesttenth ofaton when used.

(2) Applications for certification will be reviewed in order to determine the credibility ofthe reductions. Reductions determined to be creditable will be certified by the executive director.

(3) The applicant will be notified in writing ifthe executive director denies the discrete emission creditnotification. The applicant may submit arevised discrete emission credit notification in accordance with the requirements ofthis division.

(4) Ifa facility's or mobile source's emission's exceed its allowable emission limit, the amount ofemissions exceeding the limit may not be certified as discrete emission credits.
(f) 

### Geographic scope. Except as provided in paragraph (7) ofthis subsection and 

### §101.375 ofthis title (relating to Emission Reductions Achieved Outside the United States), only emissionreductions generated in the State ofTexas may be creditable and used in the state with the following limitations.

### (1) VOC and NOx

### discrete emission credits generated in an ozone attainmentarea may be used in any county orportion ofacounty designated as attainment orunclassified, except

as specified in paragraphs (4) and (5) ofthis subsection and may notbe used in an ozone nonattainment area. (2) VOC and NOx

### discrete emission credits generated in an ozone nonattainment

area may be used either in the same ozonenonattainment area in which they were generated, or in any county orportion ofacounty designated as attainmentorunclassified.

(3) VOC and NOx

### discrete emission credits generated in an ozone nonattainment

area may notbe used in any other ozonenonattainmentarea, exceptas provided in this subsection.

(4) VOC discrete emi,ssion credits are prohibited from use within the covered attainment counties, as defined in §

### 115,10 ofthis title (relating to Definitions), ifgenerated outside ofthe covered attainment counties. VOCdiscrete emission credits generated in a nonattainment area may be used in the covered attainment counties, exceptthose generated in EI Paso.

(5) NOx

### discrete emission credits are prohibited from use within the covered

.attainment counties, as defined in §115.10 ofthis title, ifgenerated outside ofthe covered attainment counties. NOx 

### discrete emission credits generated in anonattainment area, except those generated in EI Paso, may be used in the covered attainment counties.

(6) CO, 

### 802, 

### and PMIQ discrete emission credits mustbe used in the same metropolitan statistical area (as defined in Office ofManagement and BudgetBulletin Number

### 93-17 entitled "Revised Statistical Definitions for Metropolitan Areas" dated June 30, 1993) in which the reduction was generated.

(7) VOC and NOx 

### discrete emission credits generated in other counties, states, or emission reductions in other nations may be used in any attainmentor nonattainment county provided a demonstration has been made and approved by the executive director and the EPA, to show that the emission reductions achieved in the other county, state, or nation improve the air quality in the county where the credit is being used.

(g) Ozone season. In areas having an ozone season ofless than 12 months (as defined in 40 Code ofFederal Regulations Part 58, Appendix D) VOC and NOx

### discrete emission credits generated outside the ozone season may notbe used during the ozone season.

(h) Recordkeeping. The generatormustmaintain a copy ofall notices andbackup information submitted to the registry for aminimum offive years, following the completion of the generationperiod. The usermust maintain a copy ofall notices and backup information submittedto the registry for a minimum offive years, following the completion ofthe use period. Otherrelevantreference material orraw data must also be maintained on-site by theparticipating facilities or mobile sources. The user must also maintain a copy ofthe generator's notice and backup information for a minimum offive years after the use is completed. The records shall include, butnotnecessarily be limited to:

(1) the name, emission pointnumber, and facility identification number ofeach facility or any otheridentifying number for mobile sources using discrete emission credits;

### (2) the amount ofdiscrete emission credits being usedby each facility or mobile source; and

(3) the specific number, name, or other identification ofdiscrete emission credits used for each facility ormobile source.

(i) Public information. All information submitted withnotices, reports, and trades regarding the nature, quantity ofemissions, and sales price associatedwith the use or generation ofdiscrete emissioncredits is public information and may notbe submitted as confidential. Any claim ofconfidentiality for this type ofinformation, orfailure to submitall information may result in therejection ofthe discrete emissionreduction application. All nonconfidential notices and information regarding the generation, use, and availability ofdiscrete emission credits may be obtained from theregistry.
(j) 

### Authorization to emit. A discrete emission credit createdunder this division is a limited authorization to emitthe specified pollutants in accordance with the provisions ofthis section, the Federal Clean AirAct, andthe Texas Clean AirAct, as well as regulations promulgated thereunder. A discrete emission credit does not constitute aproperty right. Nothing in this division should be construed to limitthe authority ofthe commission orthe EPA to terminate orlimit such authorization.

(k) Programparticipation. The executive directorhas the authority to prohibit a company from participating in discrete emission credit trading either as a generatororuser,ifthe executive director determines that the companyhas violated the requirements ofthe program or abusedthe privileges provided by the program.

### (I) 

### Compliance burden and enforcement.

(I) The user is responsible for assuring that a sufficientquantity ofdiscrete emission credits are acquired to coverthe applicable facility or mobile source's emissions forthe entire use period.

(2) The user is in violation ofthis section ifthe userdoes not possess enough discrete emission credits to coverthe compliance need for the useperiod. Ifthe user possesses an insufficientquantity ofdiscrete emission credits to cover its compliance need, the userwill be out ofcompliance for the entire use period. Each day the user is out ofcompliance may be considered

a violation.

(3) Users may not transfer their compliance burdenand legal responsibilities to a third-party participant. Third-party participants may only act in an advisory capacity to the user.

(m) Credit ownership. The owner ofthe initial discrete emission creditcertificate shall be the owneror operator ofthe facility or mobile source creating the emission reduction. The executive director may approve a deviation from this subsection considering factors such as, but not limited to:

(I) whether an entity otherthan the owner or operator ofthe facility ormobile

source incurred the cost ofthe emission reduction strategy; or

(2) whetherthe owner or operator ofthe facility ormobile source lacks the potential to generate one tenth ofaton ofcredit.

### §101.376. DiscreteEmission CreditUse.

(a) Requirements to use discrete emission credits. Discrete emission credits may be used ifthe following requirements are met.

(1) The user shall have ownership ofa sufficient amount ofdiscrete emission credits before the use period for which the specific discrete emission credits are to be used.

(2) The user shall hold sufficient discrete emission credits to cover the user's compliance obligation at all times.

(3) The user shall acquire additional discrete emission credits during the use period ifit is detennined the user does not possess enough discrete emission credits to coverthe entireuse period. The user shall acquire additional credits as allowed under this section priorto the shortfall, orbe in violation ofthis section.

(4) Facility ormobile source operators may acquire and use only discrete emission credits listed on the"registry.

(b) Use ofdiscrete emission credits. With the exception ofuses prohibited in subsection (c) ofthis section orprecluded by commission order orcondition within an authorization under the same commission accountnumber, discrete emission credits maybe used to meet or demonstrate compliance with any facility or mobile regulatory requirement including the following:

(1) to exceed any allowable emission level, ifthe following conditions are met:

### (A) in ozone nonattainment areas, permitted facilities may use discrete emission credits to exceedpermitallowables by no more than ten tons for nitrogen oxides or five
tons for volatile organic compounds in a 12-monthperiod as approved by the executive director. This use is limited to one exceedance, up to 12 months within any 24-month period, per use strategy. The user shall demonstrate thatthere will beno adverse impacts from the use ofdiscrete emission credits at the levels requested; or


### (B) atpermitted facilities in counties orportions ofcounties designated

as attainment or unclassified, discrete emission credits may be used to exceed permit allowables by values not to exceed the prevention ofsignificant deterioration significance levels as provided in 40 Code ofFederal Regulations (CFR) §52.21 (b)(23), as approved by the executive director prior to use. This use is limited to one exceedance, up to 

### 12 months within any 24-monthperiod, per use strategy. The user shall demonstrate that there will be no adverse impacts from the use of discrete emission credits at the levels requested;

(2) as new sourcereview (NSR) permit offsets, ifthe following requirements are met:

(A) the user shall obtain the executive director's approval prior to the use ofspecific discrete emission credits to cover, at a minimum, one year ofoperation ofthe new or modified facility in the NSRpermit;

(B) the amount ofdiscrete emission credits needed for NSR offsets equals the quantity oftons needed to achieve the maximum allowable emission level set in the user's NSR permit. The user shall also purchase and retire enough discrete emission credits to

### meet the offset ratiorequirement in the user's ozone nonattainment area. The user shall purchase and retire eitherthe environmental contribution of 10% orthe offsetratio, whichever is higher; and

(C) the NSRpermit must meetthe following requirements:

(i) the permitmust contain an enforceable requirement thatthe facility obtain at least one additional yearofoffsets before continuing operation in each subsequent year;

(ii) priorto issuance ofthepermit the user shall identify the discrete emission credits; and (iii) priorto start ofoperationthe user shall submit a completed DEC-2 Form, Notice ofIntentto Use Discrete Emission Credits, along with the original certificate;

(3) to complywiththe Mass Emissions Cap and Trade Programrequirements as provided in §101.356(g) ofthis title (relating to Allowance Banking and Trading); or

(4) to comply with Chapters 114, 115, and 117 ofthis title (relating to Control of AirPollution from MotorVehicles; Control ofAirPollution from Volatile Organic Compounds; and Control ofAirPollution from Nitrogen Compounds), as allowed.

(c) Discreteemission credituse prohibitions. A discrete emission credit may notbe used under this division:

### (I) before ithas been acquired by the user;

(2) for netting to avoid the applicability offederal and state NSR requirements;

(3) to meet (as codified in 42 United States Code (USC), Federal Clean Air Act (FCAA)) requirements for:

(A) new source performance standards under FCAA, §III (42 USC, §7411);

(B) lowest achievable emission rate standards under FCAA, §I73(a)(2) (42 USC, §7503(a)(2));

(C) best available control technology standards under FCAA, § I65(a)(4) (42 USC, §7475(a)(4)) orTexas Health and Safety Code, §382.0518(b)(l);

(D) hazardous air pollutants standards under FCAA, §112 (42 USC, §7412), including the requirements for maximum achievable control technology;

(E) standards for solid waste combustion under FCAA, §129 (42 USC, §7429);

(F) requirements for a vehicle inspection and maintenance program under FCAA, § I82(b)(4) or (c)(3) (42 USC, §7511 a(b)(4) or (c)(3));

### (G) ozone control standards set under FCAA, §l83(e) and 

### (t) (42 USC, §7511 bee) and 

### (t);

(H) 

### clean-fueled vehicle requirements under FCAA, §246 (42 USC, §7586);

(1) 

### motor vehicle emissions standards under FCAA, §202 (42 USC, §752l);

(J) 

### standards for non-road vehicles under FCAA, §213 (42 USC, §7547);

(K) requirements forreformulated gasoline under FCAA, §2l1 (k) (42 USC, §7545); or

(L) requirements for Reid vapor pressure standards underFCAA, §2l ](11) and (i) 

### (42 USC, §7545(h) and (i»;



### (4) to allow an emissions increase ofan air contaminant above a level authorized in a permit or other authorization that exceeds the limitations of§106.261 or 

## §106.262 ofthis title (re]ating to Facilities (Emission Limitations); andFacilities (Emission and Distance Limitations)) except as approved by the executive director and the United States Environmental Protection Agency. This paragraph does not apply to limitthe use ofdiscrete emission reduction credits (DERC) ormobile discrete emission reduction credits in lieu ofallowances under §101.356(h) of this title;

### (5) to authorize a facility whose emissions are enforceably limited to below applicable major source threshold levels, as defined 

## in §122.1 0 ofthis title (relating to General Definitions), to operate with actual emissions above those levels without triggering applicable requirements that would otherwise be triggered by such major source status; or

(6) to exceed an allowable emission level where the exceedance would cause or contribute to a condition ofair pollution as determined by the executive director.

(d) Notice ofintent to use.

(1) A completed DEC-2 Form, signed by an authorizedrepresentative ofthe applicant shall be submitted to the executive director in accordance with the following requirements.

(A) Discrete emission credits may be used only after the applicant has submitted the notice and received executive director approval.

(B) The application mustbe submitted at least45 days prior to the first day ofthe use period ifthe discrete emission credits were generatedfrom a facility, 90 days ifthe discrete emission credits were generated from a mobile source, and every 12 months thereafter for each subsequent year ifthe use period exceeds 12 months.

(C) 

### A copy ofthe application shall also be sent to the federal land manager 30 days prior to use ifthe useris located within 100kilometers ofa Class I area, as listed in 40 CFRPart 81 (2001).

### (D) The application mustinclude, butis not limited to, the following infonnation for eachuse:
(i) 

### the applicable state and federal requirements that the discrete emission credits will be used to comply with and the intended use period;

(ii) the amount ofdiscrete emission credits needed;

(iii) the baseline emissionrate, activity level, and total emissions forthe applicable facility ormobile source;
(iv) the actual emission rate, activity level, and total emissions for the applicable facility ormobile source;
(v) the most stringent emissionrate and the most stringent emission level for the applicable facility ormobile source, considering all applicable regulatory requirements;

(vi) acomplete description ofthe protocol, as submitted by the executive director tothe United States Environmental Protection Agency for approval, used to calculate the amount ofdiscrete emission credits needed;

(vii) the actual calculations perfom1ed by the user to determine the amount ofdiscrete emission credits needed;

### (viii) the date that the discrete emission credits were acquired or wi

### II be acquired;

(ix) the discrete emission credit generator and the original certificate ofthe discrete emission credits acquired or to be acquired;

(x) the price ofthe discrete emission credits acquired or the expected price ofthe discrete emission credits to be acquired, except for transfers between sites under common ownership or control;

(xi) a statementthat due diligence was taken to verify thatthe discrete emission credits were notpreviously used, the discrete emission credits were not generated as aresultofactions prohibited under this regulation, andthe discrete emission credits will notbe used in a mannerprohibited under this regulation; and

(xii) a certification ofuse, that must contain certification under penalty oflaw by aresponsible official ofthe user oftruth, accuracy, and completeness. This certification must state thatbased on information and beliefformed afterreasonable inquiry, the
statements and information in the document are true, accurate, and complete.

(2) DERC use calculation.

(A) To calculate the amount ofdiscrete emission credits necessary to complywith§§117.123, 117.223, ]]7.320,117.323,117.423, 117.lO20, 117.]120, 117.1220,or 117.3020 ofthis title (relating to Source Cap; and System Cap), a user may use the equations listed in those sections, or the following equations.

### Required (tons) (i) Forthe rolling average cap:
Figure: 30 TAC §101.376(d)(2)(A)(i)

Amount of DERCs N


# = [(

# EH iX

# ER,)

-(Hi X

# R;)] x (

# 2~OOJ
Where: d = 

### the number ofdays in the use period i = 

### each emission unit in the source or system cap 

## N 

## = the total number ofemission units in the source or system cap 

## Hi = 

### actual daily heat input, in million Britishthermal units (MMBtu) per day, as calculated according to §§ 117.123(b)(I), 117.223(b)(]), 117.320(c)(I) and (2), 117.323(b)(I), 117.423(b)(l), 117.I020(c)(1), 117.1120(c)(1), 117.1220(c)(1), or 117.3020(c) ofthis title (relating to Source Cap; and System Cap) as applicable 

## R; 

## = actualemission rate, in pounds (Ib)/MMBtu, as defined in §§ 117.123(b)(I), 117.223(b)(1), 117.320(c)(1) and (2), 117.323(b)(I), 117.423(b)(1), 117.1020(c)(1), 117.1120(c)(1), 1I7.1220(c)(1), or 117.3020(c) ofthis title as applicable 

### EH; 

## = expectednew daily heat input, in MMBtu perday ER; = 

### expected new emission rate, in Ib/MMBtu.

(ii) Formaximum daily cap:
Figure: 30 TAC §101.376(d)(2)(A)(ii)

### N 

## 1 Amount ofDERCS Required (tons)

## =

# I [(EHMiXERi)-(HMiXRi)]-- i=1 

## 2000 Where: i = 

### each emission unit in the source or system cap 

## N = 

### the total number ofemission units in the source or system cap 

## R;= in Ib/MMBtu, is defined as 

## in §§117.123(b)(2), I 17.223(b)(2), 117.320(c)(3), 117.323(b)(2), 117.423(b) (2), 117.1020(c)(2), 117.1 120(c)(2), or 117.1220(c)(2) ofthis title (relating to Source Cap; and System Cap) as applicable HMi 

## = the maximum daily heat input, in MMBtu/day, as defined in §§ 117. 123(b)(2), 117.223(b)(2), 117.320(c)(3), 117.323(b)(2), 117.423(b)(2), 117.1020(c)(2), 117.1120(c)(2), or 117.1220(c)(2) ofthis title as applicable 

## EH Mi.=

### expected new maximum daily heat input, inMMBtu per day 

### ERi = 

### expected new emission rate, in Ib/MMBtu.

(B) The amount ofdiscrete emission credits needed to demonstrate compliance or meet a regulatory requirement is calculated as follows.

Figure: 30TAC §I01.376(d)(2)(B)

(ELA) x (EER

- RER) = 

### discrete emission credits needed Where: ELA 

### = expected level ofactivity EER = 

### expected emission rate per unit activity RER

## =regulatory emissionrate per unit activity.

### (C) The amount ofdiscrete emission credits needed to exceed an allowable emissions level is calculated as follows.
Figure: 30 TAC 

## §] 01.376(d)(2)(C)

Where: (ELA

- PLA) x (PER) 

## =discrete emission credits needed ELA = 

### expected level ofactivity PLA = 

### permitted level ofactivity PER = 

### permitted emission rate perunit activity

(D) The user shall retire]0% more discrete emission credits than are needed, as calculated in this paragraph, to ensure thatthe facility or mobile source environmental contributionretirement obligation will 

### be met.

(E) Ifthe amount ofdiscrete emission credits needed to meet aregulatory requirement orto demonstrate compliance is greaterthan ten tons, an additional 5.0% ofthe discrete emission credits needed, as calculatedin this paragraph, mustbe acquired to ensure that sufficient discrete emission credits are available to the user with an adequate compliance margin.

(3) A user may submit anotice late in the case ofan emergency, butthe notice
mustbe submitted before the discrete emission credits canbe used. The user shall include a complete description ofthe emergency situation in the notice ofintentto use. All othernotices submitted less than 45 days prior to use, or 90 days priorto use for amobile source, will be considered late and in violation.

### (4) The user isresponsible for detennining the credits itwill purchase and notifying the executive director ofthe selected generating facility ormobile source in the notice ofintentto use. 

### Ifthe generator's credits are rejected orthe notice ofgeneration is incomplete, the use ofdiscrete emission credits by the usermay be delayed by the executive director. The user cannot use any discrete emission credits thathave not been certifiedby the executive director. The executive director may reject the use ofdiscrete emission credits by a facility or mobile

source ifthe credit and use cannotbe demonstrated to meet the requirements ofthis section.

(5) Ifthe facility is in an area with an ozone seasonless than 12 months, the user shall calculate the amount ofdiscrete emission credits needed for the ozone season separately from the non-ozone season.

(e) Notice ofuse.

(I) The user shall calculate:

(A) the amount ofdiscrete emission credits used, including the amountof discrete emission credits retired to coverthe environmental contribution, as described in subsection (d)(2)(C) ofthis section, associated with actual use; and (B) the amount ofdiscrete emission credits not used, including the amount ofexcess discrete emission credits that werepurchased to coverthe environmental contribution, as described in subsection (d)(2)(C) ofthis section, butnot associated with the actual use, and available for future use.

(2) DERC use is calculatedby the following equations.

### (A) The amount ofdiscrete emission credits used to demonstrate compliance ormeetaregulatoryrequirement is calculated as follows.
Figure: 30 TAC §101.376(e)(2)(A) (ALA) x (AER

- RER) := 

### discrete emission credits used Where: ALA := 

### actual level ofactivity AER = 

### actual emissionrate perunit activity RER

## =regulatory emissionrate perunitactivity

(B) The amount ofdiscrete emission credits usedto comply withpermit allowables is calculated as follows.

Figure: 30 TAC §101.376(e)(2)(B)

(ALA

-PLA) x (AER)

## =discrete emissioncredits used Where: ALA 

## = actual level ofactivity PLA 

## =permitted level ofactivity AER 

## =permitted emissionrate perunit activity

(3) ADEC-3 Form, Notice ofUse ofDiscrete Emission Credits, shall be \ 

### submitted to the commission in accordance with the following requirements.

(A) The notice mustbe submitted within 90 days after the end ofthe use period.

### (B) The notice must be submitted within 90 days ofthe conclusion of each 12-month use period, ifapplicable.
(C) 

### The notice is to be used as the mechanism to update or amend the notice ofintent to use and must include any information different from that reported in the notice ofintent to use, including, but not limited to, the following items:



### (i) purchase price ofthe discrete emission credits obtained prior
to the current use period, except for transfers between sites under common ownership or control;

(ii) the actual amount ofdiscrete emission credits possessed during the use period;

(iii) the actual emissions during the use period for volatile organic compounds and nitrogen oxides;

(iv) the actual amount ofdiscrete emission credits used; (v) the actual environmental contribution; and

(vi) the amount ofdiscrete emission credits available for future

use.

(4) Discrete emission credits that are notused during the use period are surplus and remain available for transfer or use by the holder. 

## In addition, any portion ofthe calculated environmental contribution not attributed to actual use is also available.

### (5) The useris in violation ofthis section ifthe user submits thereport ofuse laterthanthe allowed 90 days following the conclusion ofthe useperiod.

### SOBCHAPTER H: EMISSIONS BANKING AND TRADING DIVISION 5: SYSTEM CAP TRADING 

### §101.383, §101.385

§101.383. General Provisions.

(a) System cap limits may be exceeded with surplus emission allowables obtained for that day from another source owner oroperatorparticipating in a systemcap. The owner or operator may exceed the:

(1) maximum daily cap with one-day surplus emission allowables generated on the same day; and

(2) rolling 30-day average daily system cap emission limitation with surplus emission allowables generated overthe same period.

(b) System cap limits for units within an electric power generating systemas regulated under § 117.3020 ofthis title (relating to System Cap) may be exceeded with surplus emission allowables obtained for that calendaryear from another source owner or operatorparticipating in

a system cap.

(c) The cap requirements ofChapter 117 ofthis title (relating to Control ofAir Pollution from Nitrogen Compounds) continue to apply, except as modified in subsections (a) and (b) of this section.



### §101.385. Recordkeeping and Reporting.

### (a) The owner or operator ofa source in an ozone nonattainment area participating with this division shall submitto the executive director a quarterly report.

(I) Each quarterly reportwill be based on athree-calendar month period beginning on January 1 ofeach year.

(2) The report shall be submitted within 30 days following the end ofthe quarterly period.

(3) The report shall detail the following:

(A) the daily nitrogen oxides (NOx) emissions from each source along with supporting calculations for the maximum daily cap and the rolling 30-day average system cap emission limitation;

(B) all emission trades conducted under this division during the reported time period including the trade date orperiod, quantity traded, and trading participants.

(b) The owner or operator ofa source participating in a system cap limitfor sources subjectto 

## §117.3020 ofthis title (relating to SystemCap) shall submitto the executive director an annual report.

(l) 

### Each annual report willbe based on a l2-month calendarperiodbeginning on January I ofeach year.

### (2) The report shall be submitted within 30 days following the end ofthe annual period.

(3) 

### The report shall detail the following:

(A) the annual NOxemissions from each source along with supporting calculations; and

(B) all emissions trades conducted underthis division during the reported time period including trade date, quantity traded, and trade participants.

(c) The owner or operator ofany systemparticipating in this division shall report within 48 hours to the executive director any time that the system exceeded its daily orrolling 30-day average system cap emission limitation, orwithin 30 days any time thatthe system exceeded its annual system cap, and did not obtain surplus emission allowables for that time period. This report shall include:

(I) cause ofthe exceedence with supporting data;

(2) date orperiod ofexceedence;

(3) amount ofexceedence with data to demonstrate the amount ofemissions in

excess ofthe applicable limit; and

(4) number ofsurplus emission allowables traded on the date ofor during the period ofthe exceedence.

## TEXAS COMMISSION ON

# ENVIRONMENTAa~~JIMS ._ Ihereby**ce~lbat** 

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## QualitY

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# if**~~** Givenu 

### myhand

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. AUG 03

# 2001
La 

### CastanueIa.ChiefClerk TexasCommission on 

### EnvironmentalQuality 

## ORDER ADOPTING AMENDED AND REPEALED RULES AND REVISIONS TO THE STATE IMPLEMENTATION PLAN
Docket No. 2006-2026-RUL
On July 25, 2007, the Texas Commission on Environmental Quality (COlmnission), during a public meeting, considered adoption of amendments to Sections 101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal ofSection 101.22 of30 TAC Chapter 101. The Commission adopts these amendments and repeal, in Chapter 101, General Air Quality Rules; and corresponding revisions to the state implementation plan (SIP). The amended sections §§101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of §101.22 will be submitted to the United States Enviromnental Protection Agency (EPA) as revisions to the Texas State Implementation Plan (SIP). The adoption corrects references to sections of30 TAC Chapter 117, Control ofAir Pollution from Nitrogen Compounds, which have changed due to the reorganization ofChapter 117, revises definitions, removes an obsolete effective date, and corrects references to the commission. Under Tex. Health & 

## Safety Code AIm. §§ 

## 382.011, 382.012, and 382.023 (Vemon 2001), the Commission has the authority to control the quality ofthe state's air and to issue orders consistent with the policies and purposes of the Texas Clean Air Act, Chapter 382 of the Tex. Health & 

## Safety Code. The proposed rules were published for comment in the February 23, 2007 issue ofthe 

## Texas Register (32 TexReg 713). Pursuant to Tex. Health & 

## Safety Code Ann. § 

## 382.017 (Vernon 2001), Tex. Gov't Code Chapter 2001 (Vernon 2000 & 

## Vernon Supp. 2005), and 40 Code ofFederal Regulations § 

## 51.102, and after proper notice, the Commission conducted a public hearing to consider the amended and repealed rules and revisions to the SIP. Proper notice included prominent advertisement in the areas affected at least 30 days prior to the date ofthe hearing. Apublic hearing was held in Austin, TX onMarch 20, 2007. The Commission circulated hearing notices of its intended action to the public, including interested persons, the Regional Administrator ofthe EPA, and all applicable local air pollution control agencies. The public was invited to submit data, views, and recOlmnendations on the proposed amended and repealed rules and SIP revisions, either orally or in writing, at the hearing or during the comment period. Prior to the scheduled hearing, copies ofthe proposed amended and repealed rules and SIP revisions were available for public inspection at the Commission's central office and on the Commission's Web site. Data, views, and recOlmnendations of interested. persons regarding the proposed amended and repealed rules and SIP revisions were submitted to the Commission during the comment period, and were considered by the Commission as reflected in the analysis of testimony incorporated by reference to this

### Docket No. 2006-2026-RUL



### [,

# ~. Data, views,

# ar:tc:l,'r~cc>mmenclations of interested persons regarding the proposed amended and

repealed**r~les** 

### and SIPrevisions 'were submitted to the Commission during the comment period, and were considered by the ConimissiQll' as retlected in the analysis of testimony incorporated by reference to this Order. The Commission finds that the analysis of testimony includes the names of all interested groups or associations offering comment on the proposed amended and repealed rules and the SIP revisions and their position concerning the same. IT IS THEREFORE ORDERED BY THE COMMISSION that the amended and repealed rules and revisions to the SIP incorporated by reference to this Order are hereby adopted. The Commission further authorizes staff to make any non-substantive revisions to the rules necessary to comply with 

## Texas Register requirements. The adopted rules and the preamble to the adopted rules and the revisions to the SIP are incorporated by reference in this Order as ifset forth at length verbatim in this Order. 

## IT IS FURTHER ORDERED BY THE COMMISSION that on behalf of the Commission, the Chairman should transmit a copy of this Order, together with the adopted rules and revisions to the SIP, to the Regional Administrator ofEPA as a proposed revision to the Texas SIP pursuant to the Federal Clean Air Act, § 110, codified at 42 U.S. Code Ann. §§ 7401

- 7671q, as amended. This Order constitutes the Order of the Commission required by the Administrative Procedure Act, Tex. Gov't Code, § 2001.033 (Vernon 2000 

### & Vernon Supp. 2005). If any portion of this Order is for any reason held to be invalid by a court of competentjurisdiction, the invalidity ofany portion shall not affect the validity ofthe remaining portions.

Date issued: 

# AUG 0

# 22001 TEXAS COMMISSION ON ENVIRONMENTAL QUALITY 

# ) 

# I/

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.

## / ( '-. ' .•..r-) ,

# '---~ \{tLO(YJLQA/L/ ttllleen Hartnett White, ChairmanIn 2003, the 78th Texas Legislature enacted HB 3459, adding TEC, §7.027 (renumbered to §7.028 in subsequent legislative session), which limits compliance monitoring by the state. TEC, §7.028, gives the board oftrustees ofaschool districtorthe governing body ofan open-enrollment charter school the primary responsibility for ensuring that the district or school complies with all applicable requirements of state educational programs. As a consequence ofTEC, §7.028, activities relating to provisions under TEC, §37.008(m), including rulemaking requirements, were suspended. In addition to TEC, §7.028, TEC, §37.008(m-1), was added and directs the commissioner to identify districts that indicate high risk of data and compliance violations. As a result of these two legislative requirements, the TEAdeveloped a newagency-wide Performance-Based Monitoring (PBM) system. This new monitoring system replaced the former process outlined in the rule being repealed and includes a data validation component. The adopted repeal of 19 TAC Chapter 97, Subchapter CC, §97.1021, implements these legislative changes. The public comment period on the proposal began June 1, 2007, and ended July 1,2007. No public comments were received. The repeal is adopted under the Texas Education Code (TEC), §7.028, which establishes a limitation on compliance monitoring (inclUding suspension of rulemaking requirements under TEC, §37.008(m)) and TEC, §37.008(m-1), which directs the commissioner to identify districts that indicate a high risk of data and compliance violations. As a result of TEC, §7.028 and §37.008(m-1), the TEA developed a new agency-wide Performance-Based Monitoring system that includes a data validation component. The repeal implements the TEC, §7.028 and §37.008(m-1). This agency herebycertifies thatthe adoption has been reviewed by legal counsel and found to be a valid exercise ofthe agency's legal authority. Filed with the Office of the Secretary of State on July 26, 2007. TRD-200703247 Cristina De La Fuente-Valadez Director, Policy Coordination Texas Education Agency Effective date: August 15, 2007 Proposal publication date: June 1, 2007 For further information, please call: (512) 475-1497 

# • • • TITLE 30. ENVIRONMENTAL QUALITY 

## PART 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY CHAPTER 101. GENERAL AIR QUALITY RULES The Texas Commission on Environmental Quality (TCEQ or commission) adopts amendments to §§101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of §101.22. Sections 101.1,101.302,101.306,101.353,101.354, and 101.376 are adopted with changes to the proposed text as published in the February 23,2007, issue of the Texas Register. Sections 101.22,101.350,101.351,101.360,101.372, 101.383, and 101.385 are adopted without changes to the proposed text and will not be republished. The commission does not adopt the proposed amendment to §101.23 as pUblished in the February 23,2007, issue of the Texas Register. The amended §§101.1, 101.302, 101.306,101.350,101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of§1 01.22will be submitted to the United States Environmental Protection Agency (EPA) as revisions to the Texas State Implementation Plan (SIP). BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES The commission has adopted revisions to 30 TAC Chapter 117, Control ofAir Pollution from Nitrogen Compounds, as partofthe SIP for the Houston-Galveston-Brazoria (HGB) and Dallas-Fort Worth nonattainment areas. Underthose revisions, Chapter 117 was reorganized. Chapter 101, General Air Quality Rules, contains references to sections ofChapter 117which have changed due to the reorganization, requiring that the cited references in Chapter 101 also change. This adoption also includes revisions identified during the last quadrennial review of Chapter 101, including changes to the definitions of cold solvent cleaning, conveyorized degreasing, high-volume low-pressure spray guns, open top vapor degreasing, standard conditions, and visible emissions. Other changes include the deletion of the defi-

. nitions of hazardous waste management facility and hazardous waste management unit, the addition of a definition for nitrogen oxides, and the removal of an obsolete effective date section. EPA comments dealing with some references unrelated to the Chapter 117 reorganization, resulted in some changes. SECTION BY SECTION DISCUSSION §101.1. Definitions. The commission adopts the modification of the opening paragraph ofthis section to specifythatthe definitions in §101.1 apply to all airquality rules. The commission adoptsthe changes tothe definitions of cold solvent cleaning, conveyorized degreasing, and open-top vapor degreasing by deleting the word "metal" so that the processes also apply to cleaning non-metal parts. The adopted amendment deletes the definitions of hazardous waste managementfacility and hazardouswaste management unit because references to these definitions are notfound in any ofthe air rules. The adopted revision to the definition of high-volume low-pressure spray guns specifies thatthe operating pressure of this equipment is measured at the air cap because this provides the most accurate measurement. The commission adopts the addition ofthe definition of nitrogen oxides from Chapter 117 because this is a common term used throughoutthe commission's air quality rules. The adopted amendment deletes the last sentence of the definition of standard conditions that reads: "Pollutant concentrations from an incineratorwill be corrected to acondition of 50% excess air if the incinerator is operating at greater than 50% excess air." The amount of air present in combustion is variable and does not qualify as a standard condition. The commission adopts the change in the second sentence of the definition of visible emissions to read: "The radiant energy from an open flame is not considered a visible emission under this definition." Radiant energy may manifest some visual effects but there is no air contaminant emitted.



## ADOPTEDRULES August10,2007 32 

## TexReg 4985§101.22. Effective Date. The commission adopts the repeal of this section because it is no longer required. §101.302. General Provisions. The commission adoptsthe references to the newly renumbered Chapter 117 sections. The section has been revised since proposal due to acomment submitted bythe EPAto remove the reference to §117.3310, Emission Specifications for Eight-HourAttainment Demonstration, from §1 01.302(d)(1 HA) since the East Texas area is attainment for all pollutants. §101.306. Emission Credit Use. The commission adopts the references tothe newly renumbered Chapter 117 sections. The section has been revised since proposal to remove the reference to §117.3123 from §1 01.306(b)(3) becausethe rule does not require itto be referenced in the equalion under Figure 30 TAC §101.306(b)(3). Also, references to maximum dailycap and references to emission credits thatareto be used for compliance with the requirements of 30 TAC Chapters 114, Control of Air Pollution from Motor Vehicles, Chapter 115, Control of Air Pollution from Volatile Organic Compounds (VOCs), or Chapter 117 or other programs, were added to this section since proposal due to a comment submitted by the EPA. §101.350. Definitions. The commission adopts the replacement of the definition of Houston/Galveston (HGA) ozone nonattainment area with HGB ozone nonattainment area because the name of the nonattainment area has changed. 

### § 

### 101.351. Applicability. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.353. Allocation ofAllowances. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. This section has been changed since proposal to add references tosections dealing with Initial Demonstration ofCompliance. These changes were unrelated to the comments submitted by EPA. §101.354. Allowance Deductions. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.360. LevelofActivity Certification. The commission adopts the replacement of references to Chapter 117 section numberswith the newly renumbered Chapter 117 sections. §101.372. General Provisions. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. §101.376. Discrete Emission Credit Use. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. This section has been changed since proposal due to a



## 32 TexReg 4986 

## August 10, 2007 Texas Register comment submitted bythe EPAto correctly reference maximum daily caps instead of rolling 30-day average emission caps. §101.383. General Provisions. The commission adopts the replacement of references to Chapter 117section numbers with the newly renumbered Chapter 117 sections. §101.385. Recordkeeping and Reporting. The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 sections. The commission also adopts minor administrative changes to address conformity to Texas Register requirements and other agency rules and guidelines. FINAL REGULATORY IMPACTANALYSIS DETERMINATION The commission reviewed the adopted rulemaking in light oUhe regulatory impact analysis requirements of Texas Government Code, §2001.0225, and determined thatthis adoption is notsubject to §2001.0225 because it does not meet 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, productivity, competition, jobs, the environment, or the public health and safety of the state ora sector of the state. Although the ultimate intent is to protecLthe environment, these adopted amendments are mainlythe result of an administrative action only, to correct and update cross-references to Chapter 117, which has been reorganized, modify certain definitions, and make other procedural changes to Chapter 101. Chapter 117, Control ofAir Pollution from Nitrogen Compounds, has been reorganized. Chapter 101, General Air Quality Rules, contains extensive references to sections of Chapter 117 that were renumbered because of the reorganization. The references contained in Chapter 101 must change accordingly. This adoption also includes revisions identified during the last quadrennial review of Chapter 101 bythe executive directorand includes changes to the definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard conditions. Other adopted changes include deleting the definitions of hazardous waste management facility and hazardous waste management unit, adding a definition for nitrogen oxides, and removing an obsolete effective date section. The adopted rules will not 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. In addition, a regulatory impact analysis is not required because the rules do not meet any of the four applicability criteria for requiring a regulatory impact analysis of a major environmental rule as defined in the Texas Government Code. Section 2001.0225 applies onlyto 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 underthe generalpowers ofthe agency instead of under a specific state law. This rulemaking does not exceed a standard set by federal law, and the adopted requirements are consistent with applicable federal standards. In addition, this adoption does not exceed an express requirement of state law and is not adopted solely under the general powers of the agency, but is specifically authorized by the provisions cited in the STATUTORY AUTHORITY section of this preamble. Finally, this rulemaking does not exceed a requirement of a delegation agreement or contract to implement a state and federal program. The commission solicited comments on the draft regulatory impact analysis determination and no comments were received. TAKINGS IMPACT ASSESSMENT The commission evaluated this rulemaking action and performed an analysis of whether the adopted rules are subject to Texas Government Code, Chapter 2007. The primary purpose of the rulemaking is to update references to sections of Chapter 117, which has been reorganized, to modify certain definitions, and to make other procedural changes to' Chapter 101. These amendments do not affect private property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of the governmental action. PromUlgation and enforcement of these adopted rules is neither a statutory nora constitutional taking because they do notaffect private real property. Therefore, these rules do not constitute a taking under Texas Government Code, Chapter 2007. 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 §505.11(b)(2), relating to rules subject to the Coastal Management Program, and will, therefore, require that goals and policies of the Texas Coastal Management Program (CMP) be considered during the rulemaking process. The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council and determined that the amendments are consistent with CMP goals and policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas (31 TAC §501.12(1)). The adopted rules update references and definitions. No new sources of air contaminants will be authorized and the revisions will maintain the same level of emissions control as previous rules. The CMP policy applicable to this rulemaking action is the policy that the commission's rules comply with federal regulations in 40 Code of Federal Regulations, to protect and enhance air quality in the coastal areas (31 TAC §501.14(q)). This rulemaking action complies with 40 Code of Federal Regulations Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirmsthat this rulemaking action is consistent with CMP goals and policies. The commission solicited comments on the consistency of this rulemaking, but no comments on the CMP were received. PUBLIC COMMENT A public hearing on the proposal was held in Austin on March 20, 2007 at the TCEQ. No comments were received at the public hearing. The commission received written comments from the EPA and Eternal Springs Wellness during the public comment period, which closed on March 26, 2007. EPA suggested modifications to the adopted rules as stated in the RESPONSE TO COMMENTS section of this preamble, and commented that they appreciate efforts made to update definitions and references in Chapter 101 that are changing due to the reorganization of Chapter 117. RESPONSE TO COMMENTS Eternal SpringsWellness commented that they oppose delaying the plan until 2018 and would like to see cleanerair now. Eternal Springs Wellness commented thatthey would like to see the implementation of California standards and VOC storage tank/degassing regulations strengthened and implemented by January 1, 2009. RESPONSE The commission appreciates the commenters' interest in air quality. The comments do not relate to the proposed Chapter 101 revisions, and no changes to the rule have been made in response to them. EPA noted that since §1 01.23 is no longer part of the federally approved regUlations in the Texas SIP, they would be unable to approve the proposed administrative changes to this section. RESPONSE The commission agrees that §101.23 is not part of the federally approved regulations in the Texas SIP. The commission applies the conditions of this section either through other rules of the commission orthrough individual permits, and the proposed amendments to §101.23 have not been adopted. EPA noted that, to be included in the Texas SIP, the Alternate Emission Reduction Policy would need to be developed in accordance with EPA's guidance on economic incentive programs, as well as meet applicable Clean Air Act requirements. RESPONSE The commission is not currently considering whether to adopt any rules regarding an alternate emission reduction policy. EPA commented that §1 01.302(d)(1 )(A) incorrectly references §117.3310, since emission reduction credits (ERCs) only apply to nonattainment areas. RESPONSE The rule has been revised to remove the reference to §117.3310. EPA commented that there is an inconsistency in §1 01.306(b)(3) with Figure 30 TAC §101.306(b)(3) and §101.376(d)(2) with Figure 30 TAC §101.376(d)(2)(A). Sections 101.306(b)(3) and 101.376(d)(2) allow the use of credits for compliance with §117.3123 but the section is not included in the figures Figure: 30 TAC §1 01.306(b)(3) and Figure: 30 TAC §101.376(d)(2)(A). RESPONSE The rule has been revised to remove the reference to §117.3123 from §101.306(b)(3). Section 1179800 allows ERCs and discrete emission reduction credits (DERCs) to be used for alternative compliancewith §117.3123. However, the equation to determine compliance to the source cap in §117.3123 is differentfrom the equations in Figure 30 TAC §101.306(b)(3) and Figure 30 TAC §101.376(d)(2)(A)(i). For compliance with §117.3123, the equations in §117.3123 are reqUired to be used in place of Figure 30 TAC §101.306(b)(3) or Figure 30 TAC §101.376(d)(2)(A)(i).


## ADOPTEDRULES August10,2007 32 

## TexReg 4987EPA commented that Figure 30 TAC §101.306(b)(3) does not reference the maximum daily cap requirements found in §1 01 .306(b)(2). RESPONSE

§/Of.f. Definitions. Unless specifically dejlned in the Texas Clean Air Act (TCAA) or in the rules ofthe commission, the tenns used by the commission have the meanings commonly ascribed to them in the field ofair pollution control. In addition to the terms that are defined by the TCAA, thc following terms, when usedin the airquality rules in this title, have the following meanings, unless the context clearly indicates otherwise. The rule has been revised to include references to both the 30- day rolling average and the maximum daily cap average requirements for system caps and source caps. EPA commented that Figure 30 TAC §1 01.376(d)(2)(A)(ii) incorrectly references §§117.123(b)(1), 117.223(b)(1), 117.323(b)(1), and 117.423(b)(1), which refer to rolling 30-day average emission caps instead of maximum daily caps. RESPONSE



### 30 TAC §101.1 STATUTORY AUTHORITY The amendment is adopted under Texas Water Code (TWC), §5.102, concerning General Powers, that provides the commission with the general powers to carry out its duties under the Texas Water Code; TWC, §5.103, concerning Rules, that authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and underTexas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amended section is also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop'a general, comprehensive plan for the proper control of the state's air. The amended section is also adopted under §382.016, concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions; and §382.051, concerning Permitting Authority. of Commission; Rules, that authorizes the commission to issue permits and adopt rules necessary for permits issued under THSC, Chapter 382. The amended section is also adopted under the Federal Clean Air Act, 42 United States Code, §§7401
- 7671q. The amended section implements THSC, §§382.002, 382.011, 382.012, 382.016, 382.017, and 380.051. (10) Carbonadsorption system--A carbon adsorberwith an inlet and outlet for exhaust gases and a system to regenerate the saturated adsorbent. (II) Coating--A material applied onto orimpregnated into a substrateforprotective, decorative, orfunctional purposes. Suchmaterials include, but are not limited to, paints, vamishes, sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings. (6) Boiler--Any combustion equipment fired with solid, liquid, and/orgaseous fuel used to produce steam or to heat water. (7) Capturesystem--All equipment (including, butnotlimited to, hoods, ducts, fans, booths, ovens, dryers, etc.) that contains, collects, and transports an airpollutant to a control device. (8) Capturedfacility--A manufacturing orproduction facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, ordisposed ofon a shared basis in an integrated waste managementunitowned, operated by, and located within a contiguous manufacturing complex. (9) Carbon adsorber--An add-on control device that uses activated carbon to adsorb volatile organic compounds from a gas stream. (2) Acid gas flare--A flare used exclusively forthe incineration ofhydrogen sulfIde and other acidic gases derived from natural gas sweetening processes. (3) Agency established facility identification number--For the purposes of Subchapter F ofthis chapter (relating to Emissions Events and Scheduled Maintenance, Startup, and Shutdown Activities), aunique alphanumeric code required to be assigned bythe owner oroperator ofa regulated entity that the emission inventory reporting requirements of § 101.10 ofthis title (relating to Emissions Inventory Requirements) are applicable to each facility at that regulated entity. (4) Ambient air--That portion ofthe atmosphere, external to buildings, to which the general public has access. (5) Background--Background concentration, the level of aircontaminants thatcannotbe reduced by controlling emissions from man-made sources. It is detennined by measuring levels in non-urban areas. (I) Account--For those sources required to be pennilted under Chapter 122 ofthis title (relating to Federal Operating Pennits Program), all sources thatare aggregated as asite. Forall othersources, any combination ofsources under common ownership or control and located on one or more contiguous properties, or properties contiguous except for intervening roads, railroads, rights-of-way, waterways, or similar divisions.

(12) Cold solvent cleaning--A batch process that uses liquid solvent to remove soils from the surfaces ofparts orto dry the parts by spraying, brushing, flushing, and/or immersion while maintaining the solvent below its boiling point. Wipe cleaning (hand cleaning) is not included in this definition. (13) Combustion unit--Anyboiler plant, furnace, incinerator, flare, engine, orother deviceorsystemused to oxidize solid, liquid, or gaseous fuels, but excluding motors and engines used in propelling land, water, and air vehicles. (14) Combustion turbine--Any gas turbine system that is gas and/or liquid fuel fired with or without power augmentation. This unit is eitherattached to afoundation oris portable equipment operated at a specific minor or major source for more than 90 days in any 12- 

### GENERAL RULES revised to change the citations 117.223(b)(2), 117.323(b)(2) and The rule has been to §§117.123(b)(2), 117.423(b)(2). 

### SUBCHAPTER A.



## 32 TexReg 4988 

## August 10,2007 Texas Registermonth period. Two or morc gas turbines powering one shaft wiII be treated as one unit. (15) Commercial hazardous wastc management facility--Any hazardous waste management facility thaI accepts hazardous waste or polychlorinated biphenyl compounds for a charge, except a captured facility that disposes only waste generated on-sitc or a facility that accepts waste only from other facilities owned or effectively controlled by the same person. (16) Commercial incinerator--An incinerator used to dispose oflVaste material from retail and wholesale trade establishmcnts. (17) Commercial medical waste incinerator--A facility that accepts for incineration medical waste generated outside the property boundaries ofthe facility. (18) Component--A piece ofequipment, including, but not limited to, pumps, valves, compressors, and pressure reliefvalves that has the potential to leak volatile organic compounds. (19) Condcnsate--Liquids that result from the cooling and/or pressure changes ofproduced natural gas. Once these liquids are processed at gas plants or refineries or in any other manner, they are no longer considered condensates. (20) Construction-demolition waste--Waste rcsulting from construction or demolition projects. (21) Control system orcontrol device--Any part, chemical, machine, equipment, contrivance, or combination ofsame, used to destroy, eliminate, reduce, or control the emission ofair contaminants to the atmosphere. (22) Conveyorizeddegreasing--A solventcleaningprocess that uses an automated parts handling system, typically a conveyor, to automatically provide a continuous supply ofparts to be cleaned or dried using either cold solvent or vaporized solvent. A conveyorized degreasing process is fully enclosed except for the conveyor inlet and exit portals. (23) Criteria pollutant or standard--Any pollutant for which there is anational ambientairquality standard established under 40 Code ofFederal Regulations Part 50. (24) Custody transfer--The transfer ofproduced crude oil and/orcondensate, afterprocessing and/or treating in the producing operations, from storage tanks or automatic transfer facilities to pipelines or any other forms oftransportation. (25) Deminimis impact--A change in ground level concentration ofan air contaminant as a result ofthe operation ofany new maior stationary source or ofthe operation ofany existing source that has undergone amajormodification that does not exceed the following specified amounts. Figure: 30 TAC §I01.1 (25) (No change.) (26) Domestic wastes--The garbage and rubbish normally resulting from the functions oflife within a reSidence. (27) Emissions banking--A system for recording emissions reduction credits so they may be used or transferred for future use. (28) Emissions event--Any upset event or unscheduled maintenance, startup, or shutdown activity, from a common cause that results in unauthorized emissions of air contaminants from one or more emissions points at a regulated entity. (29) Emissions reduction credit--Any stationary source emissions reduction that has been banked in accordance with Chapter 101, SubchapterH, Division I ofthis title (relating to Emission Credit Banking and Trading). (30) Emissions reduction credit cerlilicatc--The certificate issued by the executive director that indicates the amount ofqualified reduction available for use as offsets and the length oftime the reduction is eligible for use. (31) Emissions unit--Any part ofa stationary source that emits, or would have the potential to emit, any pollutant subject to regulation under the Federal Clean Air Act. (32) Excess opacity event--When an opacity reading is equal to or exceeds 15 additional percentage points above an applicable opacity limit, averaged over a six-minute period. (33) Exempt solvent--Those carbon compounds or mixtures ofcarbon compounds used as solvents that have bcen excluded from the definition ofvolatile organic compound. (34) External 110ating roof--A coveror roofin an open top tank that rests upon or is floated upon the liquid being contained and is equipped with a single or double seal to close the space between the roofedge and tank shell. A double seal consists oftwo complete and separate closure seals, one above the other, containing an enclosed space between them. (35) Federal motor vehicle regulation--Control ofAir Pollution from Motor Vehicles and Motor Vehicle Engines, 40 Code of Federal Regulations Part 85. (36) Federally enforceable--Alllimitations and conditions that are enforceable by the United States Environmental Protection Agency administrator, including those requirements developed under 40 Code ofFederal Regulations (CFR) Parts 60 and 61; requirements within any applicable state implementation plan (SIP); and any pennit requirements established under 40 CFR §52.21 or under regulations approved under 40 CFR Part 51, Subpart I, including operating permits issued under the approved program that is incorporated into the SIP and that expressly requires adherence to any pennit issued under such program. (37) Flare--An open combustion unit (i.e., lacking an enclosed combustion chamber) whose combustion air is provided by uncontrolled ambient air around the flame, and that is used as a control

, device. A nare may be equipped with a radiant heat shield (with or

without a refractory lining), but is not equipped with a flame air control damping system to control the air/fuel mixture. In addition, aflare may also use auxiliary fuel. The combustion flame may be elevated or at ground level. A vapor combustor, as defined in this section, is not considered a flare. (38) Fuel oil--Any oil meeting the American Society for Testing and Materials (ASTM) specifications for fuel oil in ASTM 0396-0I, Standard Specifications for Fuel Oils, revised 200I. This includes fuel oil grades I, 1 (Low Sulfur), 2, 2 (Low Sulfur), 4 (Light). 4, 5 (Light), 5 (Heavy), and 6. (39) Fugitive emission--Any gaseous or particulale contaminant entering the atmosphere that could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening designed to direct or control its Ilow. (40) Garbage--Solid waste consisting ofputrescible animal and vegetable waste materials resulting from the handling, preparation, cooking, andconsumptionoffood,includingwaste materials from markets, storage facilities, and handling and sale ofproduce and other food products. (41) Gasoline--Any petroleum distillate having a Reid vaporpressure offourpoundspersquare inch(27.6kilopascals) orgreater that is produced for use as amotor fuel, and is commonly called gasoline.


## ADOPTED RULES August10,2007 32 

## TexReg 4989(42) Hazardouswasles--Any solidwaste identifiedorlisted as ahazardous wasle by the adminislratoroftheUniled StatesEnvironmental Protection Agency underthe federal SolidWaste Disposal Act, as amended by Resource Conservation and Recovery Act, 42 United States Code, §§690l el seq., as amended. (43) Heatset(used inoffsetlithographic printing)--Any operationwhere healis requiredto evaporate ink oil from Iheprintingink. Hot air dryers are used 10 deliver the heat. (44) High-bake coatings--Coatings designed to cure at temperatures above 194 degrees Fahrenheit. (45) High-volume low-pressure spray guns--Equipment used 10 apply coatings by means ofa spray gun that operates between 0.1 and 10.0 pounds per square inch gauge air pressure measured at the air cap. (46) Incinerator--An enclosed combustion apparatus and attachments that is used in the process ofburning wastes for the primary purpose ofreducingits volume andweightby removing the combustibles ofthe waste and is equipped with a flue for conducting products ofcombustion to the atmosphere. Any combustion device that burns 10% or more ofsolid waste on atotal British thennalunit (Btu) heat input basis averaged over anyone-hour period is considered to be an incineralor. A combustion device without instrumentation or methodology to detennine hourly flow rates ofsolid waste and burning 1.0% or more ofsolid waste on a lotal Btu heat input basis averaged annually is also considered to be an incinerator. An open-trench type (with closed ends) combustion unit may be considered an incinerator when approved by the executive director. Devices burning untreated wood scraps, wasle wood, orsludge from the trealment ofwastewater from the process mills as a primary fuel for heat recovery are not included under this definition. Combustion devices permitted under this title as combustion devices other than incinerators will not be considered incinerators for application ofany mle within this title provided they are installed and operated in compliance with the condition ofall applicable pennits. (47) Industrial boiler--A boiler located on the site ofa facility engaged in a manufacturing process where substances are transfonned into new products, including the componentparts ofproducts, by mechanical or chemical processes. (48) Industrial furnace--Cement kilns; lime kilns; aggregate kilns; phosphate kilns; coke oveus; blast furnaces; smelting, melting, or refining furnaces, including pyrometallurgical devices such as cupolas, reverberator furnaces, sintering machines, roasters, or foundry furnaces; titanium dioxide chloride process oxidation**reactor~;** methane refonning furnaces; pulping recovery furnaces; combustion devices used in the recovery of sulfur values from spent sulfuric acid; and other devices the commission may list. (49) Industrial solid waste--Solid waste resulting from, or incidental to, any process ofindustry or manufacturing, or mining or agricultural operations, classified as follows. (A) Class Iindustrial solidwaste orClass Iwaste is any industrial solid waste designated as Class 1 by the executive director as any industrial solid waste or mixture of·industrial solid wastes that because ofits concentration or physical or chernical characteristics is toxic, corrosive, flammable, a strong sensitizer or irritant, a generator ofsudden pressure by decomposition, heat, or other means, and may pose a substantial present or potentiul danger to human health or the environment when improperly processed, stored, transported, or otherwise managed, including hazardous industrial waste, as defined in §335.1 and §335.505 ofthis title (relating to Definitions and Class I Waste Determination).



## 32 TexReg 4990 August10,2007 Texas Register (B) Class 2industrial solidwaste is any individual solid wasleorcombinationofindustrial solidwastes thatcannotbedescribed as Class I or Class 3, as defined in §335.506 ofthis title (relating to Class 2 Waste Detennination). (C) Class 3 industrial solidwaste is any inertand essentially insoluble industrial solid waste, including materials such as rock, brick, glass, dirt, and certain plastics and rubber, etc., that are notreadily decomposable as defined in §335.507 ofthis title (relating to Class 3 Waste Determination). (50) Internal floating cover--A cover or floating roofin a fixed rooftank that rests upon or is floated upon the liquid being contained, and is equipped with a closure seal or seals to close the space between the cover edge and tank shell. (51) Leak--A volatile organic compound concentration greater than 10,000 parts per million by volume or the amount specified by applicable rule, whichever is lower; or Ihe dripping or exuding ofprocess fluid based on sight, smell, or sound. (52) Liquid fuel--A liquid combustible mixture, not derived from hazardous waste, with a heating value of at least 5,000 British thennal units per pound. (53) Liquid-mounted seal--A primary seal mounted incontinuous contact with the liquid between the tank wall and the floating roofaround the circumference ofthe tank. (54) Maintenance area--A geographic region of the state previously designated nonattainment under the Federal Clean Air Act Amendmentsof1990and subsequentlyredesignatedto attainmentsubject to the requirement to develop a maintenance plan under42United States Code, §7505a. The following are the maintenance areas within the state: (A) Victoria Ozone Maintenance Area 60 (Federal Register (FR) 12453)

- Victoria County; and (B) Collin County Lead Maintenance Area (64 FR 55421)

- Portion of Collin County. Eastside: Starting at the intersection ofSouth Fifth Street and the fence line approximately 1,000 feet south ofthe Exide property line going north to the intersection of South Fifth Street and Eubanks Street; Northside: Proceeding west on Eubanks to the Burlington Railroad tracks; Westside: Along the Burlington Railroad tracks to the fence line approximately 1,000 feet south ofthe Exide property line; Southside: Fence line approximately 1,000 feet south ofthe Exide property line. (55) Maintenance plan--A revision to the applicable state implementation plan, meeting the requirements of42 United States Code, §7505a. (56) Marine vessel--Any watercraft used, orcapable ofbeing used, as a means oftransportation on water, and that is constructed or adapted to carry, or that carries, oil, gasoline, or other volatile organic liquid in bulk as a cargo or cargo residue. (57) Mechanical shoe seal--Ametal sheetthat is heldvertically against the storage tank wall by springs or weighted levers and is connected by braces to the floating roof. Aflexible coated fabric (envelope) spans the annular space between the metal sheet and thefloating roof. (58) Medical waste--Waste materials identified by the DepurtmentofStateHealth Services as "specialwastefrom health care-related facilities" and those waste materials commingled and discarded with special waste from health care-related facilities. (59) Metropolltau Planning Organization--That organization designated as being responsible, together with the state, forconducting thc continuing, cooperative, and comprchensive planning process under 23 United States Code (USC), § 134 and49 USc, § 1607. (60) Mobile emissions reduction credit--The credit obtained from an enforceable, permanent, quantifiable, and surplus (to other federal and stale rules) emissions reduction generated by a mobile source as set forth in Chapter 114, Subchapter F of this titlc (relating to Vehicle Retirement and Mobilc Emission Reduction Credits), and that has been banked in accordance with Subchapter H, Division I ofthis chapter. (61) Motor vehicle--A self-propelled vehicle designed for transporting persons orproperty on a street or highway. (62) Motorvehicle fuel dispensing facility--Any sitewhere gasoline is dispensed to motor vehicle fuel tanks from stationary storage tanks.(63) Municipal solid waste--Solid waste resulting from, or incidental to, municipal, community, commercial, institutional, and recreational activities, including garbage, rubbish, asbes, street cleanings, dead animals, abandoned automobiles, and all other solid waste except industrial solid waste. (64) Municipal solid waste facility--All contiguous land, structures, otber appurtenances, and improvements on the land used for processing, storing, or disposing of solid waste. A facility may bc publicly or privately owned and may consist ofseveral processing, storage, or disposal operational units, e.g., one or more landfills, surface impoundments, or combinations ofthem. (65) Municipal solid waste landfill--A discrete areaofland or an excavation that receives household waste and that is not a land application unit, surface impoundment, injection well, orwastepile, as those terms are defined under40 Code ofFederal Regulations §257.2. A municipal solidwastelandfill (MSWLF)unitalso may receiveother types ofResource Conservation and Recovery Act Subtitle 0 wastes, such as commercial solid waste, nonhazardous sludge, conditionally exempt small-quantity generator waste, and industrial solid waste. Such a landfill may be publicly or privately owned. An MSWLF unit may be a new MSWLF unit, an existing MSWLF unit, or a lateral expansion. (66) National ambient air quality standard--Those standards established under 42 United States Code, §7409, including standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhalable particulate matter, and sulfurdioxide. (67) Net ground-level concentration--The concentration of an air contaminant as measured at or beyond the property boundary minus therepresentative concentration flowing onto aproperty as measured at any point. Where there is no expected influence ofthe aircontaminant flowing onto a property from other sources, the net ground level concentration may bedetermined by a measurementat orbeyond the property boundary. (68) New source--Any stationary source, the construction or modification ofwhich was commenced after Marcil 5, 1972. (69) Nitrogen oxides (NO)--The sum of the mtric oxide and nitrogen dioxide in the flue gas or emission point, collectively expressed as nitrogen dioxide. (70) Nonattainment area--A defined region within the state that is designated by the United States Environmental Protection Agency (EPA) as failing to meet the national ambient air quality standard for a pollutant for which a standard exists. The EPA will designate the area as nonatlainment under the provisions of42 United States Code, §7407(d). For the official list and boundaries of nonattainment areas. see 40 Code ofFederal Regulations Part 81 and pertinent FederalRegister(FR) notices.**Th~** following areas comprise the nonattainment areas within the state for all national ambient air quality standards (NAAQS). EPA has indicated lhat it will revoke the one-hour ozone standard in full, including the associated designations and classifications, on June 15,2005, which is one year fol]owing the effective date ofthe designations for the eight-hour NAAQS ofJune 15,2004. (A) Carbon monoxide (CO). E] PasoCOnonatlainment arca (56 FR 56694)--Classified as a Moderate CO nonattainment area wilh adesign value less than orequal to 12.7 parts permillion. Portion ofEI Paso County. Portionofthe city limits ofE] Paso: Thatportionof the City ofEI Paso bounded on the north by Highway 10 from Porfirio Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to the Southern Pacific Railroad lines, the Southern Pacific Railroad lines from Rayno\ds Street to Highway 62, Highway 62 from the Southern Pacific Railroad lines to Highway 20, and Highway 20 from Highway 62 to Polo Inn Road. Bounded on the cast by Polo Inn Road from Highway 20 to the Texas-Mexico border. Bounded on the south by the Texas-Mexico border from Polo Inn Road to Porflrio Diaz Street. Bounded on the west by Porfirio Diaz Street from the Texas-Mexico border to Highway 10. (B) Inhalable particulale matter (PM,,). El Paso PM", nonattainment area (56 FR 56694)--Classified as a Moderate PM", nonattainmenl area. Portion ofEl Paso County that comprises the EI Paso city limit boundaries as they existed on November 15, 1990. (C) Lead. No designated nonattainmenl areas. (D) Nitrogendioxide. No designated nonattainment areas. (E) Ozone (one-hour). (i) Houston-Galveston-Brazoria (HGB) one-hour ozone nonattainment area (56 FR 56694)

- Classified as a Severe-I7 ozone nonattainment area. Consists of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and WallerCounties. (ii) El Paso one-hour ozone nonattainment area (56 FR56694)

-Classifiedas aSerious ozone nonattainmentarea. Consists ofEI Paso County. (iii) Beaumont-Port Arthur (BPA) one-hour ozone nonattainment area (69 FR 16483)

- Classified as a Serious ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties. (iv) Dallas-Fort Worth one-hour ozone nonatlainment area (63 FR 8128)

- Classified as a Serious ozone nonattainment area. Consists ofCollin, Dallas, Denton, and Tarrant Counties. (F) Ozone (eight-hour). (i) HGB eight-hour ozone nonattainment area (69 FR 23936)

- Classified as aModerate ozone nonattainment area. Consists of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Monlgomery, and Waller Counties. (ii) BPA eight-hour ozone nonattainment area (69 FR 23936)

- Classified as a Marginal ozone nonattainment area. Consists ofHardin, Jefferson, and Orange Counties. (iii) Dallas-Fort Worth eight-hour ozone nonattainment area (69 FR 23936)

- Classified as a Moderate ozone nonattainment area. Consists ofCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties. (iv) San Antonio eight-hour ozone nonattainmenl area (69 FR 23936)

- Classified under the Federal Clean Air Act, Tit]e



## ADOPTEDRULES August10,2007 32 

## TexReg 4991I, Part D, Subpart I (42 United States Code, §7502), nonatlainment deferred to September30, 2005, or as extended by EPA. (G) Sulfurdioxide. Nodesignated nonattainmentareas. (71) Non-reportable emissions event--Any emissions event that in any 24-hour period does not result in an unauthorized emission from any emissions point cqual to or in excess of the reportable quantity as defined in this section. (72) Opacity--The degree to which an emission ofair contaminants obstructs the transmission oflight expressed as the percentagc oflight obstmcted as measured by an optical instrument ortrained observer. (73) Open-top vapordegreasing--A batch solvent cleaning process that is open to the air and that uses boiling solvent to create solvent vapor used to clean or dry parts through condensation ofthe hot solvent vapors on the parts. (74) Outdoor buming--Any fire or smoke-producing process that is not conducted in a combustion unit. (75) Particulate matter--Any material, except uncombined water, thatexists as asolidorliquid in the atmosphere orin agas stream at standard conditions. (76) Particulate matter emissions--All finely-divided solid orliquid material, otherthan uncombinedwater, emitted to the ambient air as measured by United States Environmental Protection Agency Reference Method 5, as specified at 40 Code ofFederal Regulations (CFR) Part 60, Appendix A, modified to include particulate caughtby an impinger train; by an equivalent or alternative method, as specified at 40 CFR Part 5I; orby a test method specified in an approved statc implementation plan. (77) Petroleum refinery--Any facility engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils, lubricants, orotherproducts through distillation ofcmde oil, orthrough the redistillation, cracking, extraction, reforming, or otherprocessing ofunfinished petroleum derivatives. (78) PM",--Particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers as measured by a reference method based on 40 Code ofFederal Regulations (CFR) Part 50, Appendix 

### J, and designated in accordance with 40 CFR Part 53, or by an equivalent method designated with that Part 53. (79) PM" emissions--Finely-divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal ten micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or altemative method specified in 40 Codc ofFederal Regulations Part 51, or by a test method specified in an approved state implementation plan. (80) Polychlorinated biphenyl compound--A compound subject to 40 Code ofFederal Regulations Parl 761. (81) Process orprocesses--Any action, operation, or treatment embracing chemical, commercial, industrial, or manufacturing factors such as combustion units, kilns, stills, dryers, roasters, and equipmentused in connection therewith, and all othermethods orforms ofmanufacturing orprocessing that may emit smoke, particulate matter, gaseous matter, or visible emissions. (82) Process weight per hour--"Process weight" is the total weight ofall materials introduced orrecirculated into any specific proces;that may cause any discharge ofair contaminants into the atmosphere. Solid fuels charged into the process wiII be considered as partofthe process weight, but liquid and gaseous fuels and combustion air will not. The "process weight per hour" will be derived by divicl
## 32 TexReg 

## 4992 August 10,2007 Texas Register ing the total process weight by the number ofhours in one complete operation from the beginning ofany given process to the completion thereof, excluding any time during that the equipment used to conduct the process is idle. For continuous operation, the "process weight per hour" will be derived by dividing the total process weight fora24-hour period by 24. (83) Property--AII land under common control or ownership coupled with all improvements on such land, and allfixed ormovable objects on such land, or any vessel on the waters ofthis state. (84) Reasonable further progress--Annual incremental reductions in emissions ofthe applicable air contaminant that are sufficient to provide for attainment ofthe applicable national ambient air quality standard in the designated nonattainment areas by the date required in the state implementation plan. (85) Regulatedentity--All regulated units, facilities, equipment, structures, or sources at one street address or location that are owned or operated by the same person. The tenn includes any property undercommon ownership or control identified in a permit orused in conjunction with the regulated activity at the same street address or location. Owners or operators ofpipelines, gathering lines, and flowlines under common ownership or control in a particular county may be treated as a single regulated entity for purposes ofassessment and regulation ofemissions events. (86) Remotereservoircold solventcleaning--Anycold solvent cleaning operationinwhichliquid solventis pumped to asink-like work area that drains solvent back into an enclosed container while parts are being cleaned, allowing no solvent to pool in the work area. (87) Reportableemissions event--Anyemissions eventthat in any 24-bour period, results in an unauthorized emission from any emissions point equal to or in excess ofthe reportable quantity as defined in this section. (88) Reportable quantity (RQ)--Is as follows: (A) for individual air contaminant compounds and specifically listed mixtures by name or Chemical Abstracts Service (CAS) number, either: (i) the lowest ofthe quantities: (1) listed in 40 Code of Federal Reglilations (CFR) Part 302, Table 302.4, the column "fmal RQ"; (ll) listed in 40 CFR Part 355, Appendix A, the column "Reportable Quantity"; or (JJl) listed as follows: (-a-) acetaldehyde

- 1,000 pounds, except in the Houston-Galveston-Brazoria (HGB) and Beaumont-Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ must be 100 pounds; (-b-) butanes (any isomer)

- 5,000 pounds: (-c-) butenes (any isomer, except 1,3-butadlene)

- 5,000 pounds, except in the HOB and BPA ozone nonattainment areas as defmed in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ must be 100 pounds; (-d-) carbon monoxide

- 5,000 pounds; (-e-) I-chloro-I,I-difluoroethane (HCFC142b)

- 5,000 pounds; (-f-) cblorodifluoromethane (HCFC-22)

- 5,000 pounds; (-g-) I-cbloro-I-fluoroethune (HCFC-151 a)

- 5,000 pounds; (-h-) chlorofluoromethane (HCFC-31) 5,000 pounds;(-i-) chloropcntalluoroethane (CFC-115) 5,000 pounds; (-j-) 2-chloro-l, 1,1 ,2-tctralluoroethane (HCFC-124)

- 5,000 pounds; (-k-) l-chloro-I,I,2,2 tetralluoroethane (HCFC-124a)

- 5,000 pounds; (-1-) 1,I, 1,2,3,4,4,5,5,5-deca11uoropcntanc (HFC 43-IOmee)

- 5,000 pounds; (-m-) decanes (any isomer)

- 5,000 pounds; (-n-) I,l-dichloro-I-Iluorocthanc (HCFC141b)

- 5,000 pounds; (-0-) 3,3-dichloro-l,I,2,2-pentalluoropropane (HCFC-225ca)

- 5,000 pounds; (-p-) I,3-dichloro-l,I,2,2,3-pentalluoropropane (HCFC-225cb)

- 5,000 pounds; (-q-) I,2-dichloro-l,I,2,2-tetralluoroethane (CFR-114)

- 5,000 pounds; (-r-) I, I-dichlorotctrafluoroethane (CFC114a)

- 5,000 pounds; (-s-) I,2-dichloro-l, 1,2-trilluoroethane (HCFC-123a)

- 5,000 pounds; (-t-) 1,I-dilluoroethane (HFC-152a)

- 5,000 pounds; (-u-) ditluoromethane (HFC-32)

- 5,000 pounds; (-v-) ethanol

- 5,000 pounds; (-w-) ethylene

- 5,000 pounds, except in the HOB and BPA ozone nonallainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ must be 100 pounds; (-x-) ethylfluoride (HFC-161) 5,000 pounds; (-y -) I,I, 1,2,3,3,3-heptafluoropropane (HFC-227ea); (-z-) I, I,I,3,3,3-hexafluoropropane (HFC236fa)

- 5,000 pounds; (-aa-) I, I, 1,2,3,3-hexafluoropropane (HFC-236ca)

- 5,000 pounds; (-bb-) hexanes (any isomer)

- 5,000 pounds; (-cc-) isopropyl alcohol

- 5,000 pounds; (-dd-) mineral spirits

- 5,000 pounds; (-ee-) octanes (any isomer)

- 5,000 pounds; (-ff-) oxides of nitrogen

- 200 pounds in ozone nonallainment, ozone maintenance, early action compact areas, Nueces County, and San Patricio County, and 5,000 pounds in all other areas ofthe state, which should be used instead ofthe RQs for nitrogen oxide and nitrogen dioxide provided in 40 CFR Part 302, Table 302.4. the column "final RQ"; (-gg-) pentachlorofluoroethane (CFR-III)

- 5,000 pounds; (-hh-) 1,1,1,3,3-pentatluorobutane (HFC365mfc)

- 5,000 pounds; (-ii-) pcntalluoroethane (HFC-125)

- 5,000 pounds; (-jj-) I, 1,2,2,3-pentafluoropropane (HFC245ca)

- 5,000 pounds;(-kk-) I, 1,2,3,3-pentafluoropropane (HFC245ea)

- 5,000 pounds;(-11-) I, I, I,2,3-pentafluoropropane (HFC245eb)

- 5,000 pounds;(-mlll-) I,I,I,3,3-pentafluoropropane (HFC-245fa)

- 5,000 pounds; (-nn-) pentanes (any isomer)

- 5,000 pounds; (-00-) propane - 5,000 pounds; (-pp-) propylene

- 5,000 pounds, except in the HOB and BrA ozone nonallainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ must be 100 pounds; (-qq-) I,I,2,2-terachloroditluoroethane (CFR -112)

- 5,000 pounds; (-rr-) I,I, I,2-tetrachlorodilluoroetllane (CFC-112a) -5.0nO pounds; (-ss-) I,I,2,2-tetralluoroethane (HFC-134) 5,000 pounds; (-tt-) 1,1,1,2-tctrafluoroethane (HFC-134a)- 5,000 pounds; (-uu-) 1,1 ,2-trichloro-1 ,2,2-trilluorocthane (CFR-113)

- 5,000 pounds; (-vv-) I, I, l-trichloro-2,2,2-triI1l0roethane (CFC-113a)

- 5,000 pounds; (-ww-) I, I, l-tritluoro-2,2-dichlorocthane (HCFC-123)

- 5,000 pounds; (-xx-) I,I,I-trilluoroethane (HFC-143a) 5,000 pounds; (-yy-) trifluoromethane (HFC-23)

- 5,000 pounds; or (-zz-) toluene

- 1,000 pounds, except in the HOB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) ofthis section, where the RQ must be 100 pounds; (ii) if not listed in clause (i) ofthis subparagraph, 100 pounds; (B) for mixtures ofair contaminant compounds: (i) where the relative amount ofindividual air contaminantcompounds is known through common process knowledge or prior engineering analysis or testing, any amount ofan individual air contaminant compound that equals or exceeds the amount specified in subparagraph (A) ofthis paragraph; (ii) where the relative amount ofindividual air contaminant compounds in subparagraph (A)(i) ofthis paragraph is not known, any amount ofthe mixture that equals or exceeds the amount for any single aircontaminantcompound that is presentin the mixture and listed in subparagraph (A)(i) ofthis paragraph; (iii) where each of the individual air contaminant compounds listed in subparagraph (A)(i) ofthis paragraph are known to be less tllan 0.02°;(, by weightofthe mixture, and eachofthc otllerindividual air contaminant compounds covered by subparagraph (A)(ii) ofthis paragraph are known to be less than 2,0% by weight ofthe mixture, any total amount ofthe mixture ofair contaminant compounds greater than or equaIto 5,000 pounds; or (ill) where natural gas excluding carbon dioxide, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen or air emissions from crude oil are known to be in an amount greater than or equal to 5,000 pounds or the associated hydrogen sulfide and mercaptans in a total amount greater than 100 pounds, whichever occurs first; (C) foropacity from boilers and combustion turbines as defined in this section fueled by natural gas, coal, lignite, wood, fuel oil containing hazardous air pollutants at a concentration ofless than 0.02% by weight, opacity that is equal to orexceeds 15 additional percentage points above the applicable limit, averaged over a six-minute period. Opacity is the only RQ applicable to boilers and combustion turbines described in this paragraph; or (D) for facilities where air contaminant compounds are measured directly by a continuous emission monitoring system providing updated readings at a minimum 15-minute interval an amount,



### ADOPTED RULES August10,2007 

## 32 TexReg 4993approved by the executive director based on any relevant conditions and a screening model, that would be reported prior to ground level concentrations reaching at any distance beyond the closest regulated entity property line: (i) less than one-halfofany applicable ambient air standards; and (ii) less than rwo times the concentration ofapplicable air emission limitations, (89) Rubbish--Nonputrescible solid waste, consisting of both combustible and noncombustible waste materials, Combustible rubbish includes paper, rags, cartons, wood, excelsior, fumiture, rubber, plastics, yard trimmings, leaves, and similar materials, Noncombustible mbbish includes glass, crockery, tin cans, aluminum cans, metal fumiture, and like materials that will not bum at ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit), (90) Scheduled maintenance, startup, or shutdown activity--For activities with unauthorized emissions that are expected to exceed a reportable quantity (RQ), a scheduled maintenance, startup, or shutdown activity is an activity that the owner or operator ofthe regulated entity whether performing or otherwise affected by the activity, provides prior notice and a final report as required by § 101,211 ofthis title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Reeordkeeping Requirements); the notice or final report includes the infonnation required in § 101.211 ofthis title; and the actual unauthorized emissions from the activity do not exceed the emissions estimates submitted in the initial notification by more than an RQ, For activities with unauthorized emissions that are not expected to, and do not, exceed an RQ, a scheduled maintenance, startup, or shutdown activity is one that is recorded as required by §I01.211 of this title, Expected excess opacity events as described in § I01.20I(e) ofthis title (relating to Emissions EventReporting and Recordkeeping Requirements) resulting from scheduledmaintenance, startup, or shutdown activities are those that providepriornotice (ifrequired), and are recorded and reported as required by §101.211 ofthis title, (91) Sludge--Any solid or semi-solid, or liquid waste generated from a municipal, commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive ofthe treated effluent from a wastewater treatment plant; or air pollution control equipment. (92) Smoke--Small gas-bom particles resulting from incomplete combustion consisting predominately ofcarbon and other combustible material andpresent in sufficient quantity to be visible. (93) Solid waste--Garbage, rubbish, refuse, sludge from a waste water treatment plant, water supplytreatmentplant, or air pollution control equipment, and other discarded material, including solid, liquid, semisolid. or containerized gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations and from community and institutional activities. The term does not include: (A) solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by pennit issued under the Texas Water Code, Chapter 26; (B) soil, dirt, rock, sand, and othernatural orman-made inert solid materials used to fill land, ifthe object ofthe fill is to make the land suitable for the construction ofsurface improvements; or (C) waste materials that result from activities associated with the exploration, development. or production ofoil or gas,


## 32 TexReg 4994 

## August 10, 2007 Texas Register or geothermal resources, and other substance or material regulated by the Railroad Commission of Texas under Natural Resources Code, §91, 101, unless thewaste, substance, ormaterial results from activities associated with gasoline plants, natural gas liquids processing plants, pressure maintenance plants, orrepressurizing plants and is hazardous waste as defined by the administrator of the United States Environmental Protection Agency underthe federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Act, as amended (42 United States Code, §§6901 elseq.), (94) Sourcrude--A crude oil that will emita sour gas when in equilibrium at atmospheric pressure. (95) Sour gas--Any natural gas containing more than 1.5 grains ofhydrogen sulfide per 100 cubic feet, or more than 30 grains oftotal sulfur per 100 cubic feet. (96) Source--A pointoforiginofaircontaminants, whether privately or publicly owned or operated, Upon request of a source owner, the executive director shall determine whether multiple processes emitting air contaminants from a single point ofemission will be treated as a single source or as multiple sources, (97) Special waste from health care-related facilities--A solid waste that ifimproperly treated orhandled, may serve to transmit infectious disease(s) and that is comprised ofthe following: animal waste, bulk blood and blood products, microbiological waste, pathological waste, and sharps, (98) Standard conditions--A condition at a temperature of 68 degrees Fahrenheit (20 degrees Centigrade) and a pressureof 14.7 pounds per square inch absolute (101.3 kiloPascals), (99) Standard metropolitan statistical area--An area consisting ofacounty orone or more contiguous counties that is officially so designated by the United States Bureau ofthe Budget. (100) Submerged fill pipe--Afill pipethatextends from the top ofatank to have amaximum clearanceofsix inches (J 5.2 centimeters) from the bottomor, when applied to atank that is loaded from the side, that has a discharge opening entirely submerged when the pipe used to withdraw liquid from the tank canno longer withdraw liquid in normal operation, (10I) Sulfurcompounds--All inorganic or organic chemicals having an atom or atoms ofsulfur in their chemical structure, (102) Sulfuric acid mist/sulfuric acid--Emissions ofsulfuric acid mist and sulfuric acid are considered to be the same air contaminant calculated asH,SO. andmust include sulfuric acid liquidmist, sulfur trioxide, and sulfuric acid vapor as measured by Test Method 8 in 40 Code ofFederal Regulations Part 60, Appendix A. (J 03) Sweetcrude oil and gas--Those crude petroleumhydrocarbons that are not "sour" as defined in this section, (104) Total suspended partieulate--Particulate matter as measured by the method described in 40 Code ofFederal Regulations Part 50, Appendix B. (105) Transfer efficiency--The amount of coating solids deposited onto the surface or a part ofproduct divided by the total amount ofcoating solids delivered to the coating application system, (106) True vapor pressure--The absolute aggregate partial vapor pressure, measured in pounds per square inch absolute. of all volatile organic compounds at the temperature ofstorage, handling, or processing. (107) Unauthorized emissions--Emissions ofany air contaminant except carbon dioxide, water, nitrogen, methane. ethane, no-Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: August 16, 2007 Proposal publication date: February 23, 2007 For further information, please call: (512) 239-60B7

Filed with the Office of the Secretary of State on JUly 27, 2007. TRD-2007032BB Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: August 16. 2007 Proposal publication date: February 23, 2007 For further information, please call: (512) 239-60B7


### SUBCHAPTER H. EMISSIONS BANKING AND TRADING DIVISION 1. 

### EMISSION CREDIT BANKING AND TRADING 30 TAC §101.302, §101.306 STATUTORY AUTHORITY The amended sections are adopted under Texas Water Code (TWC), §5.1 02, concerning General Powers, that provides the commission with the general powers to carry out its duties under the Texas Water Code; TWC, §5.103, concerning Rules, that 

### 30 TAC §101.22 STATUTORY AUTHORITY The repealed section is adopted under Texas Water Code (TWC), §5,1 02, concerning General Powers, that provides the commission with the general powers to carry out its duties under the Texas Water Code; TWC, §5.1 03, concerning Rules, that authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.1 05, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The repealed section is also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of pUblic health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to pre- .pare and develop a general, comprehensive plan for the proper control of the state's air. The repealed section implements THSC, §§382.002, 382.011, 382.012, and 382.017. This agency herebycertifies thatthe adoption has been reviewed by legal counsel and found to be a valid exercise ofthe agency's legal authority. 

# •



# • •

• • 

# • ble gases, hydrogen, andoxygen thatexceed any airemission limitation in a permit, rule, or orderofthe commission or as authorized by Texas Clean Air Act, §382.0518(g). (108) Unplanned maintenance, startup, or shutdown aetivity--For activities with unauthorized emissions that arc expected to exceed a reportable quantity or with excess opacity. an unrlanned maintenance, startup, or shutdown activity is: (A) a startup or shutdown that was not part ofnormal or routine facility operations, is unpredictable as to timing, and is not the type ofevent normally authorized by pennit; or (B) a maintenance activity that arises from sudden and unforeseeable events beyond the control ofthe operator that requires the immediate corrective action to minimize or avoid an upset or malfunction. (109) Upset event--An unplanned and unavoidable breakdown orexcursion ofaprocess oroperation thatresults in unauthorized emissions. A maintenance, startup, or shutdown activity that was reported under § I01.211 ofthis title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements), but had emissions that exceeded the reported amount by more than a rcportable quantity due to an unplanned and unavoidable breakdown or excursion ofa process or operation is an upset event. (110) Utility boiler--A boiler used to produce electric power, steam, or heated orcooled air, or other gases or lluids for sale. (Ill) Vapor eombustor--A partially enclosed combustion device used to destroy volatile organic compounds by smokeless combustion without extracting energy in the form ofprocess heat or steam. The combustion flame may be partially visible, but at no time does the device operate with an uncontrolled flame. Auxiliary fuel and/ora flame aircontrol damping system thatcanoperateatall times to control the air/fuel mixture to the combustor's flame zone, may be required to ensure smokeless combustion during operation. (112) Vapor-mounted seal--A primary seal mounted so there is an annular space underneath the seal. The annular vapor space is bounded by the bottom ofthe priinary seal, the tank wall, the liquid surface, and the 110ating roofor cover. (113) Vent--Any duct, stack, chimney, flue, conduit, or other device used to conduct air contaminants into the atmosphere. (114) Visible emissions--Particulate or gaseous matter that can be detected by the human eye. The radiant energy from an open Harne is not considered a visible emission under this definition. (J 15) Volatile organic eompound--As defined in 40 Code of Federal Regulations §5I.I OO(s), except §51.l00(s)(2)

- (4), as amended on November 29,2004 (69 FR 69290). (116) Volatile organic compound (VOC) water separator-- Any tank. box, sump, or othercontainerin which any VOC. floating on orcontained in waterentering such tank, box, sump, orothercontainer. is physically separated and removed from such water prior to outfall, drainage, or recovery ofsuch water. This agency herebycertifies thatthe adoption has been reviewed by legal counsel and found to be avalid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on JUly 27,2007. TRD-2007032B7



## ADOPTEDRULES August10,2007 32 

## TexReg 4995authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and underTexas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes ofthe Texas Clean Air Act. The amended sections are also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.D12, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air. The amended sections are also adopted underTHSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.016, concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements forthe measuring and monitoring ofair contaminant emissions. The amended sections are also adopted under42 United States Code, §7410(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012,382.014,382.016, and 382.017. §IOI.302. GeneralProvisions. (a) Applicable pollutants. Reductions ofcriteria pollutants, excluding lead, orprecursors ofcriteriapollutants for which an area is

.designated nonattainrnent, may qualitY as emission credits. Reductions ofone pollutant may not be used to meet the requirements for another pollutant, unless urban airshed modeling demonstrates that one ozone precursor may be substituted for another, subjectto executive director and United States Environmental Protection Agency (EPA) approval. (b) Eligiblegeneratorcategories. The following categories are eligible to generate emission credits: (I) facilities, including area sources; (2) mobile sources; and (3) any facility, including area sources, or mobile sourcc associated with actions by federal agencies under §I01.30 ofthis title (relating to Conformity ofGeneral Federal Actions to Stale Implementation Plans). (c) Emission credit requirements. (I) Emission reduction credits are certified reductions that meet the following requirements: (A) reductions must be enforceable, permanent, quantifiable, real, and surplus; (B) the certified reduction must bc surplus at the time It is created, as well as when it is used; (C) in order to become certified, the reduction must have occurred after the most recent year ofemissions inventory used in the state implementation plan (SIP); and



## 32 TexReg 4996 

## August 10,2007 Texas Register (D) the facility's annual emissions prior to the reduction strategy must have been reported or represented in the emissions inventory used in the SIP. (2) Mobile emission reduction credits are certified reductions that meet the following requirements: (A) reductions must be enforceable, permanent, quantifiable, real, and surplus; (B) the certified reduction must be surplus at the time it is created, as well as when it is used; (C) in order to become certified, the reduction must have occurred after the most recent year ofemissions inventory used in the SIP; (D) the mobile source's annual emissions prior to the emission credit application must have been represented in the emissions inventory used in the SIP; and (E) the mobile sources must have been included in the attainment demonstration baseline emissions inventory. (3) Emission reductions from a facility or mobile source that are certified as emission credits under this division cannot be recertified inwhole orinpartas credits underanotherdivision within this subchapter. (d) Protocol. (I) All generators or users ofemission credits shall use a protocol that has been submitted by the executive director,to the EPA for approval, if existing for the applicable facility or mobile source, to measure and calculate baseline emissions. Ifthe generator or user wishes to deviate from a protocol submitted by the executive director, EPA approval is required before the protocol can be used. Protocols must be used as follows. (A) Facilities subject to the emission specifications under §§117.1JO, 117.210, 117.310, lJ7.410, 117.1010, 117.JIIO, 117.1210, 117.1310, 117.2010, or 117.2110 of this title (relating to Emission Specifications for Attainment Demonstration; Emission Specifications for Eight-Hour Attainment Demonstration; and Emission Specifications) shall quantify reductions in nitrogen oxide emissions using the testing and monitoring methodologies identified to show compliance with the emission specification. (B) Facilities subject to the requirements under §§115.112, 115.121, 115.122, 115.162, 115.211, 115.212, 115.352, 115.421, 115.541, or 115.542 ofthis title (relating to Control Requirements; and Emission Specifications) shall quantify volatile organic compound reductions using the testing and monitoring methodologies identified to show compliance with the emission specifications or requirements.(C) Ifthe executive director has not submittecl a protocol for the applicable facility ormobile source to the EPA for approval, the following requirements apply: (i) the amount ofemission credits from a facility or mobile source, in tons peryear, will be determined and certified based on quantification methodologies at least as stringent as the methods used to demonstrate compliance with any applicable requirements for the facility or mobile source; (ii) the generator shall collect relevant data sufficient to characterize the facility's or mobile source's emissions ofthe affccted pol.lutant and the facility's or mobile source's activity level for all representative phases ofoperation in order to characterizc the facility's or mobile source's baseline emissions;(iii) facilities with continuous emissions monitoring systems or predictive emissions monitoring systems in place shall use this data in quantifying actual emissions; (iv) the chosenquantilicationprotocol mustbemade availablc for public comment foraperiodof30 days and must be viewable on the commission's Web site; (v) the chosen quantification protocol and any comments received during the public commentperiod shall be submitted to the EPA for a 45-day adequacy review; and (vi) quantification protocols shall not be accepted for use with this division if the executive director receives a letter objecting to the use ofthe protocol from the EPA during the 45-day adequacy review or the EPA adopts disapproval ofthe protocol in the Federal Register. (2) In the event that the monitoring and testing data required under paragraph (I) ofthis subsection is missing orunavailable, the facility may report actual emissions for that period oftime using these listed methods in the following orderofpreference to determine actual emissions: (A) continuous monitoring data; (B) periodic monitoring data; (C) testing data; (D) manufacturer's data; (E) EPA Compilation of AirPollution Emission Factors (AP-42), September 2000; or (F) material balance. (3) When quantifying actual emissions in accordance with paragraph (2) ofthis subsection, the generator shall use the most conservativemethod forreplacing the missingdata, submitthejustification for not using the methods in paragraph (1) ofthis subsection. and submit thejustifIcatioll for the method used. (e) Credit certification. (I) The amountofemission credits in tons per year will be detennined and certified, to the nearest tenth ofa ton per year. (2) Applications for certification will be reviewed in order to determine the credibility ofthe rcductions. Reductions determined to be creditable will be certified by the executive director. (3) The applicant will be notified in writing ifthe executive director denies the emission credit application. The applicant may submit a revised application in accordance with the requirements of this division. (4) Ifa facility's or mobile source's actual emissions exceed its allowable emission limit, reductions ofemissions exceeding the limit may not be certified as emission credits. (5) Applications for certification ofemission credit from reductions quantified under subsection (d)(1 )(C) of this section may only be approved upon completion ofthe public commentperiod. (f) Geographic scope. Except as provided in §101.305 ofthis title (relating to Emission Reductions Achieved Outside the United States), only emission reductions generated innonattainmentareas can be certified. An emission creditmust beused in the nonattainmentarea in which it is generated unless the user has obtained prior written approval ofthe executive director and the EPA; and (I) a demonstration has been made and approved by the executive director and the EPA to show that the emission reductions achieved in another county or state provide an improvement to the air quality in the county ofuse; or (2) the emission credit was generated in a nonattainment area that has an equal or higher nonattainment classification than the nonattainment area ofuse, and ademonstration has been made and approved by the executive director. and the EPA to show that the emissions from the nonattainment area where the emission credit is generated contribute to a violation ofthe national ambient air quality standard in the nonattainment area ofuse. (g) Recordkeeping. The generator shall maintain acopy ofall notices and backup infonnation submitted to the registry for a minimum offive years. The user shall maintain a copy ofall notices and backup information submitted to the creditregistry from the beginning ofthe use period and for at least five years after. The user shall also make such records available upon request to representatives ofthe executive director, EPA, and any local enforccment agency. The records must include, but not necessarily be limited to: (I) the name, emission point number, and facility identification numberofeach facility orany otheridentifyingnumber foreach mobile source using emission crcdits; (2) the amount ofemission credits being used by each facility or mobile source; and (3) the specific number, name, or other identification of emission credits used for each facility or mobile source. (h) Public information. All infonnation submitted with notices, reports, and trades regarding the nature, quantity, and sales price of emissions associated with the use, generation, and transfer of an emission credit is public information and may notbe submitted as confidential. Any claim ofconfidentiality for this type ofinformation, or failure to submitall infonnation, mayresultintherejectionoftheemission creditapplication. All nonconfidential notices and informationregarding the generation, availability, use, and transferofemission credits shall be immediately made available to the public. (i) Authorization to emit. An emission credit created under this division is alimitedauthorization to emitthepollutantsidentified in subsection (a) ofthis section, unless otherwise defined, in accordance with the provisions ofthis section, 42 United States Code, §§740I et seq., and Texas Health and Safety Code, Chapter 382, as well as regulations promulgated thereunder. An emissioncreditdoes notconstitute a property right. Nothing in this division may be construed to limit the authority ofthe commission or the EPA to terminate or limit such authorization. (i) Program participation. The executive director has the authority to prohibitan organization from participating inemission credit trading eitheras ageneratororuser, ifthe executivedirectordetermines that the organization has violated the requirements ofthe program, or abused the privileges provided by the program. (k) Compliance burden. Users may not transfer their compliance burden and legal responsibilities to a third-party participant. Third-party participants may only act in an advisory capacity to the user. (1) Credit ownership. The owner ofthe initial emission credit certificate shall betheowneroroperatorofthe facility ormobile source creating the emission reduction. The executive director may approve a deviation from thiS subsectIOn conSidering factors such as, but not limited to:(I) whether an entity other than the owner or operator of the facility ormobile source lI1curred thecostofthe emission reduction strategy; or


### ADOPTED RULES August10,2007 

## 32 TexReg 4997This agency herebycertifies thatthe adoption has been reviewed by legal counsel and found to be avalid exercise ofthe agency's legal authority.



## DIVISION 3. MASS EMISSIONS CAP AND TRADE PROGRAM 30 TAe §§101.350, 101.351, 101.353, 101.354,101.360 STATUTORY AUTHORITY Filed with the Office ofthe Secretary of State on july 27,2007. TRD-200703289 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: August 16, 2007 Proposal publication date: February 23, 2007 For further infonnation, please call: (512) 239-6087 issuance. Prior to construction, the offsets must be provided through submittal ofa completed EC-3 Form, Notice ofTntent to Use Emission Credits. along with the origlll<ll emission credit certificate. (2) For emission credits that are to be used for compliance with the requirements ofChapters 114, J15, or 117 ofthis title or other programs, the usermust submit acompleted EC-3 Form along with the original emission credit certificate, at least 90 days priorto thc planned use ofthe emission credit. Emission credits may be used only afterthe executive director grants approval ofthe notice ofintent to use. The usermust also keep acopy ofthe emissioncreditcertificate, the notice, and all backup in accordance with § I01.302(g) ofthis title (relating to General Provisions). (3) Ifthe executive director denies the facility or mobile source's use ofemission credits, any affected person by the executive director's decision may file a motion for reconsideration within 60 days ofthe denial. Notwithstanding the applicability provisions of §50JJ(c)(7) ofthis title (relating to Purpose and Applicability), the requirements of§50J9 ofthis title (relating to Motion for Reconsideration) shall apply. Only an affected person may iile a motion for reconsideration.



# •••

The amended sections are adopted under Texas Water Code (TWC), §5.102, concerning General Powers, that provides the commission with the general powers to carry out its duties under the Texas Water Code; TWC, §5.103, concerning Rules, that authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistentwith the policy and purposes ofthe Texas Clean Air Act. The amended sections are also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air. The amended sections are also adopted un- (5) an annual allocation of allowances as provided in §IOI.356 and §101.399 of this title (relating to Allowance Banking and Trading); (6) compliancewithmotorvehiclefleet requirementsto the extent allowed by §114.20I ofthis title (relating to Mobile Emission Reduction Credit Program); or (7) compliance with other requirements as allowable within the guidelines oflocal, state, and federal laws. (b) Credit use calculation. (I) The number ofemission credits needed by the user for offsets shall be determined as provided in §116.150 ofthis title. (2) For emission credits used in compliance with Chapters 114, 115, or 117 ofthis title, the number ofemission credits needed should be detennined according to the following equation plus an additional 10% to be retired as an environmental contribution. Figure: 30 TAC §101.306(b)(2) (No change.) (3) For emission credits used to comply with §§ 117.123, JI7.223, 117.320, 117.323, 117.423, 117.1020.117.1120,or 117.1220 ofthis title (relating to Source Cap; and System Cap), the number of emission credits needed for increasing the 30-day rolling average emission cap or maximum daily cap should be detennined according to the following equation plus an additional 10% to be retired as an environmental contribution. Figure: 30 TAC §J01.306(b)(3) (4) Emission credits used for compliancc with any other applicable program should bc determined in accordance with the requirements ofthat program and must contain at least 10% extra to be retired as an environmental contribution. unless otherwise specified by that program. (c) Notice ofintent to use emission credits. (I) Foremission credits which are to be used as offsets in a New SourceReview permit inaccordance with Chapter Jj 6 ofthis title (relating to Control ofAir Pollution by Permits for New Construction orModifIcation). the emissioncredits must be identified priorto permit (2) whether the owner or operator ofthe facility or mobile source lacks the potential to generate 1/1 0 ton ofcredit. §IOI.306. Emission Credit Use. (a) Uses for emission credits. Unless precluded by a commission order or a condition or conditions within an authorization under the same commission account number, emission credits may be used as the following: (J) offsets foranew source, as defined in § I0 1.1 ofthis title (related to Definitions), ormajor modification to an existing source; (2) mitigation offsets for action by federal agencies under §l01.30 ofthistitle (relating to Confonnity ofGeneral Federal Actions to State Implementation Plans); (3) an alternative means ofcompliance with volatile organic compound and nitrogen oxides reduction requirements to the extent allowed in Chapters 114, 115, and J J7 ofthis title (relating to Control ofAirPollution from MotorVehicles; Control ofAirPollution from Volatile Organic Compounds; and Control ofAir Pollution from Nitrogen Compounds); (4) reductions certified as emission credits may be used in netting by the original applicant, ifnot used, sold, reserved for use, or otherwise relied upon, as provided in §116.150 ofthis title (relating to New Major Source or MajorModification in Ozone Nonatlainment Areas);



## 32 TexReg 4998 

## August 10, 2007 Texas RegisterderTHSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit into'rmation to enable the commission to develop an emissions inventory; and §382.016. concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements forthe measuring and monitoring ofair contaminant emissions. The amended sections are also adopted under 42 United States Code, §7410(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012,382.014,382.016, and 382.017. .1"/0/.353. Allocation of AIIowances. (a) Allowances will bedeposited into compliancc accounts according to the following equation except as provided in subsection (b) or (h) ofthis section. Figure: 30 TAe §101.353(a) (b) For a new and/or modified facility that has submitted, under Chapter 116 ofthis title (relating to Control ofAir Pollution by Permit for New Construction ofModification), an application which the executive director has not determined to be administratively completc before January 2, 200I, or has qualified for a permit by rule under Chapter 106 ofthis title (relating to Permits by Rule) and has not commenced construction before January 2, 200I, allowances for each control period orthe annual allocation rights shall be acquired from facilities already participating under this division, or in accordance with § 101.356(g) ofthis title (relating to Allowance Banking and Trading). (c) Ifactual emissions ofnitrogen oxides during a control period exceed the amount ofallowances held in acompliance account on March I following the control period, allowances for the next control period will be reduced by an amount equal to the cmissions exceeding the allowances in the compliance account plus an additional 10°1<0. This does not preclude additional enforcement action by the executive director. (d) Allowances will be allocated by the executive director, who will deposit allowances into each compliance account: (1) initially, by January 1,2002; and (2) subsequently, by January I ofeach following year. (e) The annual deposit for any control period may be adjusted by the executive directorto reflectnew orexisting state implementation plan requirements. (f) Allowances may be added ordeducted by the executive director from compliance accounts following the rcview ofreports required under § 101.359 ofthis title (relating to Reporting). (g) The owneroroperatorofa facility may, due to extenuating circumstances, requesta baseline period morerepresentative ofnormal operation as detennined by the executive director. Applications for extenuating circumstances must be submitted by the owneror operator ofthe facility to the executive director: (I) no later than June 30, 2001 to request an altemative three consecutive calendaryear period for facilities in operation prior to.lanuary I, 1997; (2) no later than 90 days after completion ofthe baseline period to request up to two additional calendaryears to establish abaseline pcriod for facilities whose baseline as described by variable (2)(C) listed in the figure contained in subsection (a) ofthis section is nol completc by .lune 30, 200I; or (3) at any time as authorized by the executivc director. (h) Allowances calculated under subsection (a) ofthis section will continue to be based on historical activity levels, despite subsequent reductions in activity levels. If al.lowances are being allocated basedon allowables and the facility does notachievetwo completeconsecutive calendaryears ofactual level ofactivity data, then allowances will not continueto beallocated ifthc facility ceases operation oris not built. §/0/.354. Allowance Deductions. (a) Allowances will bededucted in tenths ofaton from a site's compliance account for a control period based upon the monitoring and testing protocols established in §§117.335, 117.340, 117.1235, 117.1240, and 117.2035 ofthis title (relating to Initial Demonstration of Compliance; Continuous Demonstration of Compliance; and Monitoring and Testing Requirements). (b) In the event that the monitoring and testing data required under subsection (a) ofthis section is missing or unavailable, the facility may report actual emissions for that period oftime using the following equation or other listed methods in the following order to determine actual emissions: continuous monitoring data; periodic monitoring data; testing data; manufacturer's data, and EPA Campilation of Ai,. Pollutioll Emission Factors (AP-42), September 2000. When reporting actual emissions as required under this subsection, the facility must also submitthejustification for not using the methods in subsection (a) ofthis section and thejustification for the method used. Figure: 30 TAC §101.354(b) (No change.) (c) Ifthe protocol used to show compliance with this section differs from the protocol used by the commission to establish the allocationofallowances under §I01.353 ofthis title (relating to Allocation ofAllowances), the executive director may recalculate the number of allowances allocated peryear for consistency between the methods. (d) When deducting allowances from a site's compliance account for a control period, the executive director will deduct the allowances beginning with themostrecentlyallocated allowances before deducting banked allowances. (e) Allowances shall be deducted from a site's compliance account in an amount equal to the nitrogen oxides (NO) emissions increases from facilities not subject to an emission specification under §/17.31 0 or § 117.201 0ofthis title (relating to Emission Specifications for Attainment Demonstration; and Emission Specifications) which result from changes made after December 31,2000, to facilities subject to this division and §117.310(e)(3) or §I J7.2010(f) ofthis title. Documentation detailing these increases in NO, emissions shall be included with the submittal ofthe ECT-I Form, Annual Compliance Report. (f) Allowances allocated in accordance with the variables in (a)(2)(B) listed in the figure contained in § 10 1.353(a) ofthiS title may only be used by the facility for which they were allocated and may not be used by other facilities at the same site during the same control period.(g) On March 1 after every control period, a site shall hold a quantity ofallowances in its compliance account that is equal to or greater than the total NO, emissions emitted during the prior control period. This agency herebycertifies thatthe adoption has been reviewed by legal counsel and found to be a valid exercise ofthe agency's legal authority.



## ADOPTEDRULES August 10,2007 32 

## TexReg4999

### DIVISION 4. DISCRETE EMISSION CREDIT BANKING AND TRADING 30 TAC §101.372, §101.376 STATUTORY AUTHORITY Filed with the Office of the Secretary of State on July 27, 2007. TRD-200703290 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: August 16, 2007 Proposal publication date: February 23,2007 For further information, please call: (512) 239-6087 

# • • • (3) The user shall acquire additional discrete emission credits during the use period if it is detennined the user does not possess enough discrete emission credits to cover the entire use period. The user shall acquire additional credits as allowed under this section prior to the shortfall, or be in violation ofthis section. (4) Facility ormobile sourceoperators may acquire anduse only discrete emission credits listed on the registry. (b) Use ofdiscrete emission credits. With the exception of uses prohibited in subsection (c) ofthis section or precluded by commission orderorcondition within an authorization underthe samecommission accountnumber, discrete emissioncredits may beused tomeet or demonstrate compliance with any facility or mobile regulatory requirement including the following: (I) to exceed any allowable emission level, ifthe following conditions are met: The amended sections are adopted under Texas Water Code (TWC), §5.102, concerning General Powers, that provides the commission with the general powersto carry out its duties under the Texas Water Code; TWC, §5.103, concerning Rules, that

.authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes ofthe Texas Clean Air Act. The amended sections are also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air. The amended sections are also adopted underTHSC, §382.014. concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.016, concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements forthe measuring and monitoring ofaircontaminant emissions. The amended sections are also adopted under42 United States Code, §7410(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, 382.014, 382.016, and 382.017. §J01.376. Discrele Emissioll Credit Use. (a) Requirements to use discrete emission credits. Discrete emission credits may be used ifthe following requirements are met. (I) The user shall have ownership ofasufficient amountof discrete emission credits before the use period for which the specific discrete emission credits are to be used. (2) The user shall hold sufficient discrete emission credits to cover the user's compliance obligation at all times.



## 32 TexReg 5000 August10, 2007 Texas Register (A) in ozone nonattainment areas, pennitted facilities may lise discrete emission credits to exceed pennit allowables by no more than ten tons for nitrogen oxides or fIve tons for volatile organic compounds in a 12-monthperiod as approvedby the executivedirector. This use is limited to one exceedance, up to 12 months within any 24-monthperiod, peruse strategy. The usershall demonstratethatthere will be no adverse impacts from the use ofdiscrete emission credits at the levels requested; or (B) at permitted facilities in counties or portions of counties designated as attainment or unclassified, discrete emission credits may be used to exceed pennit allowables by values not to exceed the prevention ofsignificant deterioration significance levels as provided in 40 Code ofFederal Regulations (CFR) §52.21(b)(23), as approved by the executive directorprior to use. This use is limited to one exceedance, up to 12 luonths within any 24-month period, per use strategy. The user shall demonstrate that there will be no adverse impacts from the use ofdiscrete emission credits at the levels requested;(2) as new source review (NSR) pennit offsets, ifthe following requirements are met: (A) the user shall obtain the executive director's approval prior to the use ofspecific discrete emission credits to cover, at a minimum, one year ofoperation ofthe new or modified facility in the NSR permit; (B) the amount ofdiscrete emission credits needed for NSR offsets equals the quantity oftons neededto achieve the maximum allowable emission level set in the user's NSR pennit. The user shall also purchase and retire enough discrete emission credits to meet the offset ratio requirement in the user's ozone nonattainment area. The user shall purchase and retire either the environmental contribution of 10% or the offset ratio, whichever is higher; and (C) the NSR pennit must meet the following requirements: (i) the pennit must contain an enforceable requirement that the facility obtain at least one additional year ofoffsets before continuing operation in each subsequent year; (ii) priorto issuance ofthepermitthe usershall identify the discrete emission credits; and (iiI) prior to starl ofoperation the user shall submit a completed DEC-2 Form, Notice ofIntent to Use Discrete Emission Credits. along with the original certificate;(3) to comply with the Mass Emissions Cap andTrade Program requirements as provided in §101.356(g) ofthis titlc (relating 10 Allowance Banking and Trading); or (4) to comply with Chapters 114, 115, and 117 ofthis title (relating to Control ofAir Pollution from Motor Vchicles; Control of Air Pollution from Volatile Organic Compounds; and Control ofAir Pollution from Nitrogen Compounds), as allowed. (c) Discrete emission crcdituse prohibitions. Adiscretc emission credit may not be used under this division: (I) before it has been acquircd by thc user; (2) for nelting to avoid the applicability offederal and state NSR requirements; (3) to meet (as codined in 42 United States Code (USC), Federal Clean Air Act (FCAA)) requirements for: (A) tlew source performance standards under FCAA, §lll (42USC,§7411); (B) lowest achicvable emission rate standards under FCAA, § 173(a)(2) (42 USC, §7503(a)(2)); (C) best available control technology standards under FCAA, §165(a)(4) (42 USC, §7475(a)(4)) or Texas Health and Safety Code, §382.0518(b)(I); (D) hazardous air pollutants standards under FCAA, §112 (42 USC, §7412), including the requirements for maximum achievable control technology; (E) standards for solid waste combustion under FCAA, §129 (42 USC, §7429); (F) requirements for a vehicle inspection and mamtenance program under FCAA, §182(b)(4) or (c)(3) (42 USC, §751Ia(b)(4) or (c)(3)); (G) ozone control standards set under FCAA, §I83(e) and (f) (42 USC, §751Ib(e) and (f)); (H) clean-fueled vehicle requirements under FCAA, §246 (42 USC, §7586); (I) motor vehicle emissions standards under FCAA, §202 (42 USC, §7521); (1) standards for non-road vehicles under FCAA, §213 (42 USC, §7547); (K) requirements for refonnulated gasoline under FCAA, §211 (k) (42 USC, §7545); or (L) requirements for Reid vapor pressure standards under FCAA, §211 (h) and (i) (42 USC, §7545(h) and (i)); (4) to allow an emissions increase of an air contaminant above a level authorized in a pennit or other authorization that exceeds the limitations of § I06.261 or § I06.262 of this title (relating to Facilities (Emission Limitations); and Facilities (Emission and Distance Limitations)) except as approved by the executive director and the United States Environmental Protection Agency. This paragraph does not apply to limit the use ofdiscrete emission reduction credits (DERC) or mobile discrete emission reduction credits in lieu ofallowances under § I01.356(h) ofthis title; (5) to authorize a facility whose emissions are enforceably limited to below applicable major source threshold levels. as defined in §122.10 ofthis title (relating to General Definitions). to operate with actual emissions above those levels without triggering applicable requirements that would otherwise bc triggered by such major source status; or (6) to exceed an allowable emission level where the exceedanee would cause or contribute to a condition ofair pollution as detennined by the executive director. (d) Notice ofintent to use. (I) A completed DEC-2 Form, signed by an authorized representative ofthe applicant shall bc submilled to the executive director in accordance with the following requirements. (A) Discrete emission credits may be used only aftcr the applicant has submilled the notice and received executive director approval. (B) The application must be submilted at least 45 days prior to the first day ofthe use period ifthe discrete emission credits were generated from a facility, 90 days ifthe discrete emission credits were generated from a mobile source, and every 12 months thcreafter for each subsequent year ifthe use period exceeds 12 months. (C) A copy ofthe application shall also be sent to thc federal land manager 30 days prior to usc ifthe user is located within 100 kilometers ofa Class I area, as listed in 40 CFR Part 81 (200I). (D) The application must include, but is not limited to, the following infonnation for each use: (i) the applicable state and federal requirements that the discrete emission credits will be used to comply with and the intended use period; (ii) the amount ofdiscrete emission credits needed; (iii) thebaselineemissionrate, activity level, and total emissions for the applicable facility or mobile source; (iv) the actual emission rate, activity level, and total emissions for the applicable facility or mobile source; (v) the most stringent emission rate and the most stringent emission level for the applicable facility or mobile source, considering all applicable regulatory requirements; (vi) a complete description ofthe protocol, as submilled by the executive director to the United States Environmental Protection Agency for approval, used to calculate the amount ofdiscrete emission credits needed; (vii) the actual calculations performed by the userto detennine the amount ofdiscrete emission credits needed; (viii) the date that the discrete emission credits were acquired or will be acquired; (ix) the discrete emission credit generator and the original certificate ofthe discrete emission credits acquired or to be acquired; (x) thepriceofthediscrete emissioncreditsacquired or the expected price ofthe discrete emission credits to be acquired, except for transfers between sites undercommon ownership or control; (xi) a statement that due diligence was taken to verify that the discrete emission credits were not previously used, the discrete emission credits were not generated as a result ofactions prohibited under this regulation, and the discrete emission credits will not be used in a mannerprohibited under this regulation; and ('iii) a certification ofuse, that must contain certifIcation underpenalty oflaw by aresponsible official ofthe useroftruth, accuracy, and completeness. This certification must state that based on


### ADOPTED RULES August10,2007 32 TexReg 5001used; chased to cover the environmental contribution, as described in subsection (d)(2)(C)ofthis section, but not associated with the actual use, and available for future use.

Filed with the Office ofthe Secretary of State on July 27, 2007. TRD-200703291 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: Augus! 16. 2007 Proposal pUblication date: February 23, 2007 For further information, please call: (512) 239-6087 (\I) the actual environmental contribution; and (vi) the amount of discrete emission credits available for future use. (4) Discrete emission credits that are not used during the use period are surplUS and remain available for transfer or use by the holder. In addition, any portion ofthe calculated environmental contribution not attributed to actual use is also available. (5) The useris in violation ofthis sectionifthe usersubmits thereport ofuse laterthan theallowed90 days following theconclusion ofthe use period. This agency hereby certifies thatthe adoption has been reviewed by legal counsel and found to be avalid exercise ofthe agency's legal authority.



# • 

# • 

# • (2) DERC use is calculated by the following equations. (A) The amount of discrete emission credits used to demonstrate complianceormeet aregulatory requirement is calculated as follows. Figure: 30 TAC § I01.376(e)(2)(A) (No change.) (B) The amount of discrete emission credits used to comply with permit allowables is calculated as follows. Figure: 30 TAC § I01.376(e)(2)(B) (No change.) (3) A DEC-3 Form, Notice of Use ofDiscrete Emission Credits, shall be submitted to the commission in accordance with the following requirements. (A) The notice mLlst be submitted within 90 days after the end ofthe use period. (B) The notice must be submitted within 90 days orthe conclusion ofeach 12-month usc period, ifapplicable. (C) The noticeis to be used as the mechanism to update or amend the notice ofintent to use and must include any infonnation different from that reported in the notice ofintent to use, including, but not limited to, the following items: (i) purchase price of the discrete emission credits obtained prior to the current use period, except for transfersibetween sites under common ownership or control; (ii) the actual amount of discrete emission credits possessed during the LIse period; (iii) the actual emissions during the use period for volatile organic compounds and nitrogen oxides; (i\l) the actual amount of discrete emission credits information and belieffonned after reasonable inquiry, the statements and infonnation in the document are true, accurate, and complete. (2) DERC use calculation. (A) To calculate the amount ofdiscrete emission credits necessary to comply with §§J 17.123, 117.223, 117.320, 117.323, 117.423,117.1020,117.1120, 117.1220,01' I 17.3020 ofthis title (relating to Source Cap; and System Cap), a user may use the equations listed in those sections, or the following equations. (i) For the rolling average cap: Figure: 30 TAC §J0I.376(d)(2)(A)(i) (ii) For maximum daily cap: Figure: 30 TAC § I01.376(d)(2)(A)(ii) (B) The amount ofdiscrete emission credits needed to demonstrate compliance ormeetaregulatory requirement is calculated as follows. Figure: 30 TAC § I01.376(d)(2)(B) (No change.) (C) The amount ofdiscrete emission credits necded to exceed an allowable emissions level is calculated as follows. Figure: 30 TAC §101.376(d)(2)(C) (No change.) (D) The user shall retire 10% more discrete emission credits than are needed, as calculated in this paragraph, to ensure that the facility or mobile source environmental contribution retirement obligation will be mel. (E) lfthe amount ofdiscrete emission credits needed to meet aregulatory requirement or to demonstrate compliance is greater than ten tons, an additional 5.0% of the discrete emission credits needed, as calculated in this paragraph, must be acquired to ensure that sufficient discrete emission credits are available to the user with an adequate compliance margin. (3) A user may submit a notice late in the case ofan emergency, but the notice must be submitted before the discrete emission credits can be used. The LIseI' shall include a complete description of the emergency situation in the notice ofintent to use. All othernotices submitted less than 45 days prior to use, or 90 days prior to use for a mobile source, will be considered late and in violation. (4) The user is responsible for detennining the credits it will purchase and notifying the executive director ofthe selected generating facility or mobile source III the notice ofintent to use. Ifthe generator's credits are rejected or the notice ofgeneration is incomplete, the use ofdiscrete emission credits by the user may be delayed by the executive director. The user cannot use any discrete emission credits that have not been certified by the executive director. The executive director may reject the use ofdiscrete emission credits by a facility or mobile source ifthe credit and use cannot be demonstrated to meet the requirements ofthis section. (5) If the facility is in an area with an ozone season less than 12 months, the user shall calculate the amount ofdiscrete emission credits needed forthe ozone season separately from tile non-ozone season. (e) Notice ofuse. (I) The user shall calculate: (A) the amount ofdiscrete emission credits used, including the amount ofdiscrete emission credits retired to cover the environmental contribution, as described in subsection (d)(2)(C) ofthis section, associated with actual use; and (B) the amount of discrete emission credits not used, including the amount ofexcess discreteemission credits that were pur
## 32 TexReg 5002 August10,2007 Texas Register

### CHAPTER 305. CONSOLIDATED PERMITS The Texas Commission on Environmental Quality (TCEQ or commission) adopts amendments to §§305.69, 305.175, 305.571, and 305.572. Section 305.69 is adopted with changes to the proposed text as published in the March 9, 2007, issue of the Texas Register (32 TexReg 1203). Sections 305.175, 305571, and 305.572 are adopted without changes to the proposed text, and will not be republished. Filed with the Office of the Secretary of State on July 27,2007. TRD-200703292 Robert Martinez Director, Environmental Law Division Texas Commission on Environmental Quality Effective date: August 16,2007 Proposal publication date: February 23, 2007 For further information, please call: (512) 239-6087 

### DIVISION 5. SYSTEM CAP TRADING 30 TAC §10t.383, §101.385 STATUTORY AUTHORITY The amended sections are adopted under Texas Water Code (TWC), §5.102, concerning General Powers, that provides the commission with the general powers to carry out its duties under the Texas Water Code; TWC, §5.103, concerning Rules, that authorizes the commission to adopt rules necessary to carry out its powers and duties under the Texas Water Code; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes ofthe Texas Clean Air Act. The amended sections are also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare,and physical property; §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air. The amended sections are also adopted underTHSC, §382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop an emissions inventory; and §382.016, concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements forthe measuring and monitoring ofair contaminant emissions. The amended sections are also adopted under42 United States Code, §7410(a)(2)(A), that requires SIPs to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights. The amended sections implement THSC, §§382.002, 382.011, 382.012, 382.014, 382.016, and 382017. This agency herebycertifiesthatthe adoption has been reviewed by legal counsel and found to be avalid exercise ofthe agency's legal authority. BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES The federal hazardous waste program is authorized under §3001 of the Resource Conservation and Recovery Act (RCRA) of 1976, 42 United States Code, §6921 et seq. States may obtain authorization from the United States Environmental Protection Agency (EPA) to administer the hazardous waste program at the state level. State authorization is a rulemaking process through which EPA delegates the primary responsibility of implementing the RCRA hazardous waste program to individual states in lieu of EPA. This process ensures national consistency and minimum standards while providing fleXibility to states in implementing rules. State RCRA programs must always be at least as stringent as the federal requirements. Since the beginning of the federal hazardous waste program, the State ofTexas has continuously exercised its prerogative to participate in the EPA's authorization program. Texas received authorization of its hazardous waste "base program" under the RCRA on December 26, 1984. Texas received authorization for revisions to its base hazardous waste program for RCRA Clusters I and lion February 17, 1987. Texas submitted further revisions to its hazardous waste program and received final authorization of RCRA Clusters III through X on March 15, 1990; July 23, 1990; October 21, 1991; December4, 1992; June 27, 1994; November 26, 1997; October 18, 1999; September 11, 2000; and June 14, 2005. To maintain authorization, the commission must adopt regulations that meet the minimum standards of federal programs administered by EPA. Because the federal regulations undergo regular revision, the commission adopts new regulations to meet the changing federal regulations. The commission must adopt rule amendments that implement certain mandatory revisions to the federal hazardous waste program, which were made by EPA after June 30, 2000. In order for the State of Texas to maintain its RCRA authorization and continue to receive federal funding for the program, the mandatory federal rule changes in RCRA Clusters XI, XII, XIII, and XV must be incorporated into state rules. This adopted rulemaking includes the mandatory parts of RCRA Clusters XI, XII, XIII, and XV. Establishing equivalency with federal regulations will enable the State of Texas to increase its level ofauthorization to operate aspects ofthe federal hazardous waste program in lieu of the EPA. Additionally, the timely adoption of these federal rules allows the commission to continue receiving special project funding through the EPA Performance Partnership Grant. The Hazardous Waste Combustion Maximum Achievable Control Technology (MACT) regulations are multi-media at the federal and state level, affecting both air quality and hazardous waste management. The TCEQ has already adopted certain parts of Title 40 Code of Federal RegUlations (CFR) Part 63, SUbpart EEE (i.e., the Hazardous Waste Combustion MACT rules) prior to this adopted rulemaking under air quality regulations at Title 30, Texas Administrative Code (TAC), Chapter 113. This adopted rulemaking includes other parts ofthe federal combustion MACT program, which are codified at 40 CFR Parts 264, 265, 266, and 270. The adopted rule changes related to air quality are necessary to be consistent with previously adopted federal requirements. 

# •• •

ADOPTEDRULES August 10,2007 32 

## TexReg 5003

### Figure: 30TAC §101.306(b)(3) Calculation ofEmission Reductions Needed for SystemCap or Source Cap

Where: N= 

### thetotal number ofemission units inthe source cap 

### i

## =each emission unitinthe source cap 

### HI = 

### actual daily heat input, in million British thermal units (MMBtu) per day, as calculated according to §§ 117.123(b)(I) or (2), 117.223(b)(I) or (2), 117.320(c)(I)

- (3), 117.323(b)(1) or (2), 117.423(b)(1) or (2), 117.1020(c)(l) or (2), 117.1120(c)(I) or (2), or 117.1220(c)(l) or (2) ofthis title 

### R; = 

### the facility's emission factor, in pounds (lb)/MMBtu, is defined as in §§117.123(b)(l) or (2), 117.223(b)(l) or (2), 117.320(c)(I)

- (3), 117.323(b)(1) or (2), 117.423(b)(1) or (2), 117.1020(c)(1) or (2), 117.1120(c)(1) or(2), or 117.1220(c)(1) or (2) ofthis title Hn

### = 

### the maximum dailyheatinput, in MMBtuperday, expected for an emission unitduring the useperiod 

### R

n

## =the maximum emission factor, in IblMMBtu, expected for an emission unit during the use period



## 32 TexReg 5040 August10,2007 Texas Register

### Figure: 30 TAC §101.353(a)

Where: (1) A=number ofallowances rounded to tenths oftons; (2) B = 

### the facility'sbaseline emissionrate and is calculated as follows: (A) Forfacilities in operation priorto January 1, 1997: 

# B=(LAn

# *EF97)

# +(L/!Jg

# *EF98)

# +(LA99*EF99) 

# 3(200Q
Where: LA97

## =the facility's level ofactivity, as certifiedbythe executive director for 1997; LA98 = 

### the facility's level ofactivity, as certifiedbythe executive directorfor 1998; LA99

## =the facility's level ofactivity, as certifiedbythe executive director for 1999; EF97 = 

### the facility's emission factor for 1997 orthe emission specifications under §§117.31O, 117.1210, and 117.2010 ofthis title (relating to Emission Specifications forAttainment Demonstration; and Emission Specifications) (ESAD) whichever is higher, inpounds perunit ofactivity, (notto exceed any applicable federal or stateregulation, rule, orpermitlimit), as certifiedby the executive director; EF98 = 

### the facility's emission factor for 1998 orthe emission specifications underESAD, whicheverishigher, in pounds per unitofactivity, (notto exceed any applicable federal or state regulation, rule, orpermitlimit), as certifiedby the executive director; EF99 = 

### the facility's emission factor for 1999 orthe emission 'specifications underESAD, whicheveris higher, inpounds per unitofactivity, (notto exceed any applicable federal or state regulation, rule, orpermitlimit), as certifiedbythe executive director. rior to January 1, 1997 and thathave



## TABLESAND GRAPHICS August 10, 2007 32 

## TexReg 5041

### been in operation less than five complete consecutive calendaryears beginning afterthe end ofthe adjustmentperiodandhave not established two years ofbaseline data: 

# B = LAALLOW ABLE

# *EF ALLOWABLE 

# 2000
Where: LAAlIowable = 

### The level ofactivity authorizedby the executive directoruntil suchtime two consecutive calendaryears ofactual level ofactivity datais available; EFAllowable = 

### The emission factor orthe emission specifications underESAD, whicheveris higher, authorizedby the executive directoruntil suchtime two consecutivecalendaryears ofactual emission datais available. (C) Forexistingfacilities notin operationpriorto January 1, 1997, and thathave establishedtwo consecutivecalendar years ofbaseline data outofthe first five years ofoperation following the end ofthe adjustmentperiod: 

# B = 

# (LA YEAR

# -1

# *EFYEAR

# -1)

# +(LA YEAR

- 

# 2

# *EFYEAR

- 

# 2) 2(2000)
Where: LAYear-l 

### == 

### the facility's level ofactivity, as certifiedby the executive director, for the first ofanytwo consecutive years within the first five years ofoperation;

LAYear-2

### == 

### the facility's level ofactivity, as certifiedby the executive director, for the second ofany two consecutiveyears within the first five years ofoperation; EFYea,-\::: 

### the facility's emission factor orthe emission specifications underESAD, whicheveris higher, in pounds per unit ofactivity, (notto exceed any applicable federal or state regulation, rule, orpennit limit), as certifiedbythe executive director, for the first ofany two consecutiveyears within the first five years ofoperation; EF Year-2::: 

### the facility's emission factororthe emission specifications underESAD, whicheveris higher, in pounds per unitofactivity, (notto exceed any applicable federal or state regulation, rule, orpermitlimit), as certifiedby the executive director, forthe second ofany two consecutive years withinthe first five years ofoperation.



## 32 TexReg 5042 August 10, 2007 Texas Register

### (3) X - reduction factor, where: (A) Forall boilers, auxiliary steamboilers, and stationary gas turbines (including ductburnersused in turbine exhaustducts) within an electric power generating system, as defined in §117.10(14)(A) ofthis title (relating to Defmitions), locatedin theHouston-Galveston-Brazorianonattainrnentarea: (i) forJanuary 1,2002 through March 31,2003, X = 0.00; (ii) for April 1, 2003 throughMarch 31,2004, X = 

### 0.50; (iii) on or afterApril 1, 2004, X = 1.00; (B) Forfacilities subjectto the emission specifications under 

### §117.31 O(a)(1)(A) and (B), (2)(A), (5), (8)(A)(i), (8)(B), (9)(A)(ii), (10), or (11) ofthis title: (i) forJanuary 1,2002 through March 31, 2004, X = 0.00; (ii) for April 1, 2004 throughMarch 31, 2005, X = 0.47; (iii) for April 1, 2005 through March 31, 2006, X = 0.80; (iv) for April 1, 2006 throughMarch 31, 2007, X = 0.93; (v) on and afterApril I, 2007, X = 1.00; 

### (C) For all otherfacilities: (i) forJanuary 1, 2002 through March 31, 2004, X = 0.00; (ii) for April 1,2004throughMarch 31,2005, X = 

### 0.389; (iii) for April 1,2005 throughMarch 31,2006, X = 0.667; (iv) for April 1, 2006 through March 31,2007, X = 

### 0.778; (v) on and afterApril 1, 2007, X = 1.00; (D) Alternatively, facilities subjectto thereduction factors under subparagraphB ofthisparagraphmay electto comply with the following: (i) forJanuary 1,2002 through March 31, 2005, X=O.OO; (ii) on and after April 1,2005, X=1.00. (E) Electionto comply with the alternative reduction schedule under subparagraph (D) ofthis paragraph shall be made by letterto the executive directorno laterthanApril 1,2003, (F) For calendaryears which include two differentreduction factors, the reduction factor shall be ad'usted usin the a ro riate ratioto reflectthe



## TABLESAND GRAPHICS AllgllSl10,2007 32 

## TexReg 5043

### number ofmonths coveredby each reduction factor. (4) LAHA 

### = 

### historical average level ofactivity, where: (A) Forfacilities in operation on orbefore January 1, 1997, the average level of activity, as certifiedby the executive director, for 1997, 1998, and 1999; or (B) Forexisting facilities whichbegan operation afterJanuary 1,1997, LAHA 

### is: (i) the level ofactivity authorized bythe executive directoruntil suchtime two consecutive calendaryears ofactual level ofactivity data is available, beginning after the endofthe adjustmentperiod; or (ii) when two complete consecutive calendaryears ofactual level ofactivity data is available, beginning afterthe end ofthe adjustmentperiod, the level ofactivity becomes the average ofthe facility's actual level of activity overthose two consecutive calendaryears ofactual level of activity data. (5) EFfinal

## =emission factor, as listed in §§ 117.310, 117.1210, or 117.2010 ofthis title. (6) For facilities using alternative emission specifications as allowed in §117.310(a)(17) or §117.20IO(c)(6) ofthis title, the level ofactivity for any formula will be the lowest ofthe level ofactivity as calculated in variables (2)(A), (2)(B), orthe level ofactivity limitedby an enforceable limit orcommitmentnecessary to qualify for an alternative emission specification in §11 

### 7.3 IO(a)(17) or §117.201O(c)(6) ofthis title.



## 32 TexReg 5044 August 10,2007 TexasRegister

### Figure: 30 TAC 

### §101.376(d)(2)(A)(i)

Amount of DERCs N 

### Required =

# I [(EH; X

## ERi)- (Hi x 

## Ri)] x (

# ~) ;=1 

## 2000 (tons) Where: 

### d

## =thenumber ofdays in the use period i

## =each emissionlUlitin the source or systemcap 

### N

## =thetotal numberofemissionlUlits inthe source or systemcap 

### Hi

## =actual dailyheat input, inmillionBritishthermallUlits (MMBtu)per day, as calculatedaccording to 

### §§117.123(b)(1), 117.223(b)(1), 117.320(c)(l) and (2), 117.323(b)(1), 117.423(b)(1), 117.l020(c)(1), 117

### .1 120(c)(1), 117

### .1220(c

### )(1), or 117.3020(c) ofthis title (relating to Source Cap; and SystemCap) as applicable 

## Ri

## =actual emissionrate, inpounds (lb)/MMBtu, as definedin 

### §§ 117.l23(b)(1), 117.223(b)(l), 117.320(c)(l) and (2), 117.323(b)(l), 117.423(b)(1), 117.l020(c)(1), 117.1120(c)(1), 117.1220(c)(1), or 117.3020(c) ofthis title as applicable 

### EH;

## =expectednew daily heatinput, inMMBtuper day ERj

# =expectednew emissionrate, inIbIMMBtu.



## TABLESAND GRAPHICS August10,2007 32 

## TexReg 5045

### Figure: 30 TAC §101.376(d)(2)(A)(ii)

N 

## 1 Amount ofDERCS Required (tons)

## =

# L[(EHMiXERi)-(HMiXRi)J-- 

# 2000 Where: i 

## =each emission unitin the source or systemcap 

### N = 

### the total number ofemission units inthe source or system cap 

### Rj = 

### in 1b/MMBtu, is defined as 

### in §§ 117.123(b)(2), 117.223(b)(2), 117.320(c)(3), 117.323(b)(2), 117.423(b) (2), 117.1020(c)(2), 117.1120(c)(2), or 117.1220(c)(2) ofthis title (relatingto Source Cap; and SystemCap) as applicable HMi = 

### the maximum dailyheatinput, inMMBtuiday, as defined in §§117.123(b)(2), 117.223(b)(2), 117.320(c)(3), 117.323(b)(2), 117.423(b)(2), 117.1020(c)(2), 117.1120(c)(2), or 117
.1220(c)(2) ofthis title as applicable 

### EH 

# Mi = 

### expectednew maximum daily heatinput, inMMBtuper day 

### ERi = 

### expected new emissionrate, in IblMMBtu.

Figure 1: 30TAC Chapter 290--Preamb1e 

### Estimated Agency Costs to ImplementStage 2Drinking Water Rules 2007 2008 2009 2010 2011 Total Costs GWR $317,778 $317,778 $389,644 $862,400 $862,400 $2,750,000 LT2 154,489 161,822 161,822 161,822 161,822 801,777 DBP2 964,283 920,446 1,464,703 92,828 74,570 3,516,830 Total Costs $1,436,550 $1,400,046 $2,016,169 $1,117,050 $1,098,792 $7,068,607



## 32 TexReg 5046 August 10, 2007 Texas Register