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You are here: Home / Permitting / Air Permits / PermitByRule / Historical Rules / old116 / 399 March 21 1999 / Title 30 TAC 116.150 - 175, March 21, 1999

Title 30 TAC 116.150 - 175, March 21, 1999

Synopsis of specific rules from air permitting that were in effect on this date.

Subchapter B New Source Review Permits

NONATTAINMENT REVIEW
§ 116.150 New Major Source or Major Modification in Ozone Nonattainment Areas
§ 116.151 New Major Source or Major Modification in Nonattainment Areas Other than Ozone

PREVENTION OF SIGNIFICANT DETERIORATION REVIEW
§ 116.160 Prevention of Significant Deterioration Requirements
§ 116.161 Source Located in an Attainment Area with a Greater than De Minimis Impact
§ 116.162 Evaluation of Air Quality Impacts
§ 116.163 Prevention of Significant Deterioration Permit Fees

EMISSION REDUCTIONS: OFFSETS
§ 116.170 Applicability for Reduction Credits
§ 116.174 Determination by Executive Director to Authorize Reductions
§ 116.175 Recordkeeping

116.150 New Major Source or Major Modification in Ozone Nonattainment Areas

(a) This section applies to administratively complete applications submitted on or after November 15, 1992 for new construction or modification of facilities located in any area designated as nonattainment for ozone in accordance with the FCAA, .107. The owner or operator of a proposed new or modified facility which will be a new major stationary source of volatile organic compound (VOC) emissions or nitrogen oxides (NOx) emissions, or the owner or operator of an existing major stationary source of VOC or NOx emissions that will undergo a major modification with respect to VOC or Nox, shall meet the requirements of paragraphs (1) - (4) of this subsection, except as provided in subsections (b) and (c) of this section. Table I of § 116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels which designate a major stationary source or major modification for those classifications. Except as noted in subsection (b) of this section regarding NOx , the de minimis threshold test (netting) shall be required for all modifications to existing major sources of VOC or NOx, unless at least one of the following conditions are met: the proposed emissions increases associated with a project, without regard to decreases, is less than five tons per year of the individual nonattainment pollutant or, the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tons per year. In applying the de minimis threshold test, if the net emissions increases, aggregated over the contemporaneous period, are greater than the major modification levels stated in Table I, then the following requirements apply.

(1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in § 116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification except as provided in paragraph (3)(B) of this subsection and except for existing major stationary sources that have a potential to emit (PTE) of less than 100 tons per year of the applicable nonattainment pollutant. For these sources, Best Available Control Technology (BACT) can be substituted for LAER. LAER shall otherwise be applied to each new emission unit and to each existing emission unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit.

(2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state shall be in compliance or on a schedule for compliance with all applicable state and federal emission limitations and standards.

(3) At the time the new or modified facility or facilities commence operation, the emissions increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in § 116.12 of this title and shown in Table I of § 116.12 of this title. Internal offsets which are generated at the source and which otherwise meet all creditability criteria can be applied as follows.

(A) Major stationary sources with a PTE of less than 100 tons per year of an applicable nonattainment pollutant are not required to undergo Nonattainment New Source Review under this section, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1.

(B) Major stationary sources with a PTE of greater than or equal to 100 tons per year of an applicable nonattainment pollutant can substitute BACT for LAER, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Internal offsets used in this manner can also be applied to satisfy the offset requirement.

(4) In accordance with the FCAA, the permit application shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location.

(b) For sources located in the El Paso ozone nonattainment area (El Paso County), the requirements of this section do not apply to NOx emissions.

(c) For sources located in the Houston/Galveston (HGA) ozone nonattainment area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller counties) or the Beaumont/Port Arthur (BPA) ozone nonattainment area (Hardin, Jefferson, and Orange counties), the following shall apply to NOx emissions.

(1) For permit applications in review after April 12, 1995, and declared administratively complete on or before December 31, 1997:

(A) Subsection (a)(1), (2), and (4) of this section do not apply.

(B) The requirements of subsection (a)(3) of this section apply and shall be made a part of the source's permit. However, the requirements shall be held in abeyance for a period ending no sooner than January 1, 1998. The Texas Natural Resource Conservation Commission (commission) may, on or after January 1, 1998, and after making the determinations described in paragraph (2) of this subsection, require the source to implement the permit requirements imposed pursuant to the requirements of subsection (a)(3) of this section. If the commission requires implementation, the source shall obtain the NOx offsets as specified in subsection (a)(3) of this section no later than January 1, 2000.

(C) Documentation of proposed increases of NOx equal to or greater than 40 tons per year, as well as documentation of netting calculations for these increases, shall be submitted.

(D) A source otherwise subject to the requirements of subsection (a)(1)-(4) of this section may, at its option, comply with any of those requirements.

(2) The commission has reviewed the results of the Urban Airshed Model for the HGA and BPA ozone nonattainment areas, using data from the Coastal Oxidant Assessment for Southeast Texas study, in accordance with the United States Environmental Protection Agency document "Guideline for Determining the Applicability of Nitrogen Oxides Requirements under Section 182(f)" (December 1993). The commission has determined that additional NOx reductions in the HGA and BPA nonattainment areas will contribute to attainment of the National Ambient Air Quality Standards for ozone. The commission will notify sources which have permit requirements in abeyance pursuant to paragraph (1)(B) of this subsection, that the period of abeyance has ended. The source shall obtain the NOx offsets as specified in subsection (a)(3) of this section no later than January 1, 2000.

116.151 New Major Source or Major Modification in Nonattainment Area Other Than Ozone

This section applies to administratively complete applications submitted on or after November 15, 1992, for new construction or modification of facilities located in a designated nonattainment area for an air contaminant other than ozone. The owner or operator of a proposed new or modified facility which will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of paragraphs (1)-(4) of this section. Table I of § 116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels which designate a major stationary source or major modification for those classifications.

(1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in § 116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification. LAER shall be applied to each new emission unit and to each existing emission unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit.

(2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state shall be in compliance or on a schedule for compliance with all applicable state and federal emission limits and standards.

(3) At the time the new or modified facility or facilities commence operation, the emission increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in § 116.12 of this title and shown in Table I of § 116.12 of this title.

(4) In accordance with the Federal Clean Air Act, the permit application shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location.

116.160 Prevention of Significant Deterioration Requirements

(a) Each proposed new major source or major modification in an attainment or unclassifiable area shall comply with the Prevention of Significant Deterioration (PSD) of Air Quality regulations promulgated by the EPA in Title 40 Code of Federal Regulations (CFR) at 40 CFR 52.21 as amended June 3, 1993 (effective June 3, 1994) and the Definitions for Protection of Visibility promulgated at 40 CFR 51.301, hereby incorporated by reference.

(b) The following paragraphs are excluded:

(1) 40 CFR 52.21(j), concerning control technology review;

(2) 40 CFR 52.21(l), concerning air quality models;

(3) 40 CFR 52.21(q), concerning public notification (provided, however, that a determination to issue or not issue a permit shall be made within one year after receipt of a complete permit application so long as a contested case hearing has not been called on the application);

(4) 40 CFR 52.21(r)(2), concerning source obligation;

(5) 40 CFR 52.21(s), concerning environmental impact statements;

(6) 40 CFR 52.21(u), concerning delegation of authority; and

(7) 40 CFR 52.21(w), concerning permit rescission.

(c) The term "executive director" shall replace the word "administrator," except in 40 CFR 52.21(b)(17), (f)(1)(v), (f)(3), (f)(4)(i), (g), and (t). "Administrator or executive director" shall replace "administrator" in 40 CFR 52.21(b)(3)(iii), and "administrator and executive director" shall replace "administrator" in 40 CFR 52.21(p)(2).

(d) All estimates of ambient concentrations required under this subsection shall be based on the applicable air quality models and modeling procedures specified in the EPA Guideline on Air Quality Models, as amended, or models and modeling procedures currently approved by the EPA for use in the state program, and other specific provisions made in the PSD state implementation plan. If the air quality impact model approved by EPA or specified in the guideline is inappropriate, the model may be modified or another model substituted on a case-by-case basis, or a generic basis for the state program, where appropriate. Such a change shall be subject to notice and opportunity for public hearing and written approval of the administrator of the EPA.

116.161 Source Located in an Attainment Area with a Greater Than De Minimis Impact

The commission may not issue a permit to any new major stationary source or major modification located in an area designated as attainment or unclassifiable, for any National Ambient Air Quality Standard (NAAQS) under FCAA, § 107, if ambient air impacts from the proposed source would cause or contribute to a violation of any NAAQS. In order to obtain a permit, the source must reduce the impact of its emissions upon air quality by obtaining sufficient emission reductions to eliminate the predicted exceedances of the NAAQS. A major source or major modification will be considered to cause or contribute to a violation of a NAAQS when the emissions from such source or modification would, at a minimum, exceed the de minimis impact levels specified in § 101.1 of this title (relating to Definitions) at any locality that is designated as nonattainment or is predicted to be nonattainment for the applicable standard.

116.162 Evaluation of Air Quality Impacts

In evaluating air quality impacts under § 116.160 of this title (relating to Prevention of Significant Deterioration Requirements) or § 116.161 of this title (relating to Sources Located in an Attainment Area with a Greater Than De Minimis Impact), the owner or operator of a proposed new facility or modification of an existing facility shall not take credit for reductions in impact due to dispersion techniques as defined in Title 40 Code of Federal Regulations (CFR). The relevant federal regulations are incorporated herein by reference, as follows:

(1) 40 CFR 51.100(hh)-(kk) promulgated November 7, 1986;

(2) the definitions of "owner or operator," "emission limitation and emission standards," "stack," "a stack in existence," and "reconstruction," as given under 40 CFR § 51.100(f), (z), (ff), (gg), and 40 CFR 60, respectively;

(3) 40 CFR 51.118(a), (b), and (c); and

(4) 40 CFR 51.164.

116.163 Prevention of Significant Deterioration Permit Fees

(a) If the estimated capital cost of the project is less than $300,000 or if the project consists of new facilities controlled and operated directly by the federal government for which an application is submitted after January 1, 1987, and the federal regulations for Prevention of Significant Deterioration (PSD) of Air Quality are applicable, the fee is $1,500.

(b) If the estimated capital cost of the project is $300,000 or more and the PSD regulations are applicable, the fee is 0.5% of the estimated capital cost of the project. The maximum fee is $75,000.

(c) Whenever a permit application is submitted under PSD requirements, there shall be no additional fee for the state new source review permit application.

(d) Certification of the estimated capital cost of the project shall be provided in accordance with § 116.141(c) and (d) of this title (relating to Determination of Fees).

(e) A fee of $75,000 shall be required if no estimate of capital project cost is included with a permit application.

116.170 Applicability for Reduction Credits

At the time of application for a permit in accordance with this chapter, any applicant who has effected air contaminant emission reductions may also apply to the executive director to use such emission reductions to offset emissions expected from the facility for which the permit is sought, provided that the following conditions are met.

(1) The emission reductions are not required by any provision of the Texas State Implementation Plan as promulgated by the EPA in 40 Code of Federal Regulations, Part 52, Subpart SS, nor by any other federal regulation under the FCAA, as amended, such as New Source Performance Standards. Minimum offset ratios as specified in Table I of § 116.12 of this title (relating to Nonattainment Review Definitions) shall be used in areas designated as nonattainment areas.

(2) The applicant furnished documentation at the time of his permit application to substantiate his claim of emission reductions previously effected. The following information must be included in the documentation:

(A) location and identity of the source(s) where emissions are reduced;

(B) chemical composition of emissions reduced;

(C) date(s) when emission reductions occurred;

(D) amount of emission reductions expressed in rates of tons per year and in pounds per hour;

(E) a complete description of the reduction method (i.e., source shut-down, process or operational change, type of control device, etc.);

(F) a certification by the applicant that the emission reductions have in fact been achieved and that the same reductions have not been used previously and will not be used subsequently to offset another source; and

(G) any other pertinent detailed descriptive information that may be requested by the executive director.

(3) Emissions increases from rocket engine and motor firing, and cleaning related to such firing, at an existing or modified major source, shall be allowed to be offset by alternative or innovative means, provided the following conditions are met:

(A) any modification proposed is solely for the purpose of expanding the testing of rocket engines or motors at an existing source permitted to test such engines as of November 15, 1990;

(B) the source demonstrates to the satisfaction of the commission that it has used all reasonable means to obtain and utilize offsets, as determined on an annual basis, for the emissions increases beyond allowable levels, that all available offsets are being used, and that sufficient offsets are not available to the source;

(C) the source has obtained a written finding from the Department of Defense, Department of Transportation, National Aeronautics and Space Administration, or other appropriate federal agency, that the testing of rocket motors or engines at the facility is required for a program essential to the national security; and

(D) the source will comply with an alternative measure, imposed by the commission, designed to offset any emission increases beyond permitted levels not directly offset by the source. In lieu of imposing any alternative offset measures, the commission may impose an emissions fee to be paid which shall be an amount no greater than 1.5 times the average cost of stationary source control measures adopted in that area during the previous three years.

116.174 Determination by Executive Director To Authorize Reduction

The executive director may grant authority to a permit applicant to use prior emission reductions and emission reductions granted to the applicant by another entity (either public or private) in accordance with § 116.170 of this title (relating to Applicability for Reduction Credits) if the commission determines that the prior emission reductions have, in fact, occurred and, when considered with other emission reductions that may be required by the permit as well as contaminants that will be emitted by the new source, will result in compliance with § 116.150 of this title (relating to New Major Source or Major Modification in Ozone Nonattainment Areas), § 116.151 of this title (relating to New Major Source or Major Modification in Nonattainment Areas Other Than Ozone), § 116.160 of this title (relating to Prevention of Significant Deterioration Requirements), and § 116.162 of this title (relating to Evaluation of Air Quality Impacts), as applicable, in the area where the new source is to be located. Prior as well as future emission reductions to be used as an offset shall be made conditions for granting authority to construct the proposed new source and shall be enforced.

116.175 Recordkeeping

The executive director will maintain no records of emission offset credits claimed by an applicant in accordance with § 116.170 of this title (relating to Applicability for Reduction Credits) other than those contained in permit application and permit files. The applicant shall maintain all records necessary to substantiate claims of emission reductions and shall make such records available for inspection upon request of the executive director.


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