Air Permitting 101
Air Permitting Basics (Module 2)

If you are starting Module 2, 3, 4, or 5, you may begin with Page 3. Pages 1 and 2 of these modules contain the same information as Pages 1 and 2 of Module 1, with the exception of scoring. Each module requires a different minimum score to pass, so please review Page 2 of the module if you are interested in specific scoring values. Please review Pages 1 and 2 of this module if you need to refresh your memory regarding course objectives and any instructions that may be helpful for navigation, bookmarking, printing (lesson pages and certificate), accessibility, and contacts.

Objectives

A person completing the Air Permitting 101 on-line training will be able to do the following:

Things to Know About This Training Module

Navigation

The module opens with the Table of Contents (TOC). From the TOC, you may go directly to any page within the module by clicking on the page number or specific heading within the page. You may navigate between pages by clicking on the page numbers at the top of each page or by using the "previous page" or "next page" options at the bottom of each page. You may return to the TOC at any time by clicking on any one of the "Contents" buttons in the upper left, sidebar, or bottom of each page.

If you click on a link within the module, you may return to the module from the linked page by using the following procedures:

Scoring

There are quizzes throughout this module. The quizzes have points assigned to them, and you earn points with every correct response you give. If you answer everything correctly, you can earn a total of 60 points. If you earn a minimum of 42 points (70%) when you complete the last quiz, you've passed and earned your certificate. You can see your score in the lower right hand corner of the screen as you work through the quizzes or you can click on the "score" button in the upper right corner of the lesson page at any time to view your current score.

Bookmarking

This module will not allow you to bookmark, so please keep that in mind as you begin. If you cannot finish the module and must close it, your scores will not be retained and you must start the module over to get complete credit on the scored quizzes and activities.

Certificate

To print your certificate and score summary, type your name in the box at the end of the module. Your certificate will only print if you earn the minimum number of points.

Print Options

Use the "print all" button in the upper right corner of the lesson page to print the lesson. Please be aware that any hidden text (i.e., text poppers), sidebars, quizzes, and activities will not print. If you'd like to print additional information from the module, press ALT-PRINT SCREEN then CTRL V. You can then paste that most current screen image into Word and print from Word.

Accessibility Icon

When the accessibility icon (which looks like a keyhole) appears, users have the option of clicking the icon to view the data in a separate accessible content tab.

Formatting

If you see brown, bolded text in the module, this is most likely a text popper. If you roll your mouse over the bolded word(s), additional information regarding that specific term will "pop up." The module also has hyperlinks scattered throughout. In the main pages of the module, these are in brown, underlined text. Additional links (identified by white, bolded, and underlined text) may also be found in the sidebars.

Contacts

If you are an employee of the Air Permits Division and have any questions as you go through this module, please see the Subject Matter Experts list. See the contacts listed under the Subject Matter Heading, "On-line Training Modules - Air Permits."

If you are not an employee of the Air Permits Division and have any questions as you go through this module, please contact the Air Permits Division receptionist at (512) 239-1250. Ask the receptionist to transfer you to a subject matter expert for on-line training modules.

Air Permitting 101 Modules

This training is broken up into the following five modules:

You are currently in Module 2, entitled "Air Permitting Basics." To access the other modules, simply click on the bulleted links. For the most effective learning experience, it is recommended that the modules be completed in the order listed above.

After completing the previous module, entitled "Air Permits Division Organization," you should have a basic idea of the division's organizational structure. Now, let's take a closer look at the work that these seven sections perform. There are two primary programs implemented by the Air Permits Division: the New Source Review (NSR) Program and the Title V Operating Permits Program.

The Two Air Permitting Programs and Their Purposes

New Source Review (NSR) Program

Congress established the New Source Review (NSR) permitting program as part of the 1977 Federal Clean Air Act Amendments. The NSR permitting program ensures that air quality is not significantly degraded from the addition of new and modified facilities, assures the public that emissions from new and modified industrial sources will be reduced or eliminated through technically practicable and economically reasonable air pollution control method(s), and verifies that advances in pollution control occur concurrently with industrial expansion.

An NSR permit is required before construction on a facility begins. The purpose of the NSR program is to issue permits for new construction or modification, establishing emission controls and limits based on applicable state and federal rules and a best available control technology (BACT) and impacts review.

Federal (Title V) Operating Permits Program

Congress passed the Federal Clean Air Act Amendments of 1990, which included new provisions in Title V, creating an operating permit program to ensure better compliance and to allow for more thorough air pollution control.

A Title V permit is required for operation of major sources and certain non-major sources. Title V permits codify all applicable air requirements into one authorization. Some examples of Title V applicable requirements are:

In general, Title V permits prescribe monitoring and recordkeeping for determining compliance with applicable requirements, compliance plans for emission units that are not in compliance with applicable requirements, and requirements for permit holders to certify compliance with the permit annually and report any deviations with the permit semi-annually.

In many cases, such as initial issuance of a Title V permit, the site may operate while the Title V permit is being processed as long as a timely application was submitted.

New Source Review

What Activities Require Authorization From Us? What Are the Triggers?

Before any actual works begins, any person who plans to construct any new facility or to engage in the modification of any existing facility which may emit air contaminants into the air of the state must:

In addition to new construction and modification to existing facilities, other activities requiring NSR authorization include changes in application representations and renewal of existing authorizations.

Important Terms

The following terms and their definitions are critical in understanding NSR permitting:

 

Federal (Title V) Operating Permits Program

So, an NSR permit is required for new and modified facilities. Title V is an air permitting program generally specific to major sources. The term "major source" refers to the entire site. The determination of whether a site is a major source is done by calculating and summing emissions from all stationary sources at the site. The term "stationary source" includes facilities. Fugitive emissions are not included in the determination of whether a site is a major source unless the site is a named source. We will talk more about named sources later in this module in relation to Prevention of Significant Deterioration NSR permitting.

Any site that emits, or has the potential to emit, any of the following is a major source and must, therefore, obtain a Title V operating permit:

In addition, there are some types of sources which, by rule, are required to get a Title V permit, even if their emissions are below the above thresholds. Some examples are air curtain incinerators, municipal solid waste landfills, hazardous waste combustors, and secondary lead smelters.

Test Your Understanding

Congratulations! You've completed Part I of the on-line training module covering general information regarding the two permitting programs within the Air Permits Division. Please take the time to work through the activity that follows. This activity will help you think through everything that you've learned thus far.

 Quiz Group

If you are ready, please proceed to Part II of this module by moving on to the next page.

The Different Kinds of NSR Authorizations

Now that we've touched on the basic functions of the Air Permits Division and covered some key permitting terms, let's get into the different authorizations evaluated by division staff. The division has a "pyramid" approach to permitting as identified below.

 

Note that this "pyramid" approach does allow sources and facilities to use a less complex authorization mechanism if emissions are appropriately reduced.

For example:
A facility that qualifies for a PBR can make a process change that results in a reduction of emissions allowing the facility to be considered de minimis. After the implementation of the process change, the facility would be considered de minimis, and the PBR would not be necessary.

More detailed information regarding each level of the permitting pyramid can be found on the following pages.

De Minimis

Some facilities and sources are classified as de minimis and authorized by rule. 30 Texas Administrative Code §116.119 identifies criteria for determining de minimis classifications. In addition, specific facilities that have been evaluated and designated as de minimis are identified on the de minimis list, which is posted on the division's Web site. De minimis facilities and sources include very small additions to background concentrations of air contaminants that cause no discernable or unacceptable impact to public health and for which permitting would be an ineffective use of commission resources. Some examples of de minimis sources are music and film studios, beauty shops, and deer block manufacturing.

This authorization is intended to reduce workload and allow permitting staff to focus on projects that could affect public health and welfare. Applicants with facilities that meet the de minimis rule or de minimis list do not have to obtain an air authorization through the permitting process.

All emissions associated with the facility, or any group of facilities, must meet the de minimis criteria. No partial permitting allowed!

Permits by Rule and Standard Exemptions

Facilities with emissions that do not meet de minimis criteria but will not make a significant contribution of air contaminants to the atmosphere may be permitted by rule. Facilities that are permitted by rule include less complex comfort heating facilities to more complex facilities and activities such as those found at oil and gas sites. The commission has adopted permits by rule (PBRs) in 30 Texas Administrative Code Chapter 106.

Subchapter A of Chapter 106 contains general requirements applicable to all PBRs, including (but not limited to) recordkeeping and emission limitations. In addition to the general requirements that are contained in Subchapter A, many individual PBRs also contain conditions specific to that PBR that must be met. When a PBR is claimed, applicable requirements of both the PBR and Subchapter A must be met. It should also be noted that some PBRs require registration and others do not.

"Standard exemption" is a term still well known in air permitting. Standard exemptions were codified into 30 Texas Administrative Code Chapter 106 as permits by rule. The term "exemption from permitting" was also used for a period of time to try and aptly name these authorizations.

 

A facility that is authorized by a PBR, exemption from permitting, or standard exemption will always be authorized by it - even if the PBR (that now represents the exemption) subsequently changes. There are, however, two exceptions:

Standard Permits

A standard permit authorizes the construction or modification of new or existing facilities that are similar in terms of operations, processes, and emissions. A standard permit provides an efficient mechanism for qualifying facilities to obtain authorization as an alternative to a case-specific air quality permit. If a facility cannot meet a PBR, then the applicant should see if a standard permit can be claimed. A standard permit can never be used to authorize emissions that will trigger major NSR permitting under Chapter 116, and unlike PBRs, all standard permits (with the exception of the Pollution Control Standard Permit) require BACT.

Several standard permit authorizations have been issued. Some are non-rule and available on the division's Web site, and some are contained in the commission's rules.

Table: Standard Permits Contained in a Rule

Standard Permits Contained in a Rule

Chapter

Section or Subchapter

116

Installation and/or Modification of Oil and Gas Facilities (§116.620)

330

Subchapter U, Municipal Solid Waste Landfill Facilities and Transfer Stations

Subchapter N, Landfill Mining (§330.607)

321

Subchapter B, Concentrated Animal Feeding Operations (§321.43)

332

Composting (§332.8)

Standard permit registrations must be renewed every ten years. In addition, if the executive director amends a standard permit, the facility must comply with the amended standard permit. Compliance is usually required by the renewal date of the standard permit registration but cannot be required within 24 months of the standard permit amendment, unless it is necessary to protect public health.

For example:
If the control prescribed by a standard permit is changed, an owner or operator is not required to purchase and install the new controls within two years of the standard permit amendment.  However, if a public health issue has been discovered, action may be required within two years.  A possible example could be a change to a standard permit that authorized a specific contaminant of concern in an Air Pollutant Watch List area.

 Test Your Understanding

Yay! You've now completed Part II of this module. Before moving on, please work through the quizzes on this page to reinforce the material you've been exposed to thus far.

 Ordering Quiz 

 Quiz Group

When you're ready, please proceed to Part III of this module by moving on to the next page.

New Source Review - Subchapter B Permit

If a facility is not de minimis and cannot meet a PBR or standard permit, it must be authorized by a case-by-case NSR permit. These types of authorizations provide more flexibility to applicants because they can authorize more emissions and, unlike a PBR or standard permit, facility-specific information can be considered during the technical review, which includes a BACT and impacts review.

NSR permits are subject to public notice and an opportunity for a contested case hearing. These permits are issued with a ten-year renewal cycle. However, some older NSR permits were previously issued with a 15-year renewal date.

More specifics on the NSR process for new permits, amendments, and renewals will be discussed in Module 3.

Major New Source Review

Some NSR authorizations trigger major NSR permitting--either Nonattainment NSR permitting or Prevention of Significant Deterioration (PSD) permitting. These types of permits have additional requirements.

 

Significant emission rates, significant increases, significant threshold levels, threshold quantities, and trigger levels are one in the same. Here's an example of how this may be stated:
Nitrogen oxides (NOx) are a precursor for the criteria pollutant ozone. The trigger level for a NOx source to be considered major in a serious ozone nonattainment area is 50 tons per year. In addition, for a modification in a serious ozone nonattainment area to be major for NOx, the significant threshold level is 25 tons per year.

Major sources, major modifications, and significant emission rates will be discussed in more detail in Module 3.

Nonattainment New Source Review

New major sources and major modifications in a designated nonattainment area are required to go through Nonattainment NSR. Nonattainment reviews apply in areas which are not in compliance with the National Ambient Air Quality Standards (NAAQS). For additional information regarding nonattainment areas, see the "Learn More" sidebar on this page.

If Nonattainment NSR is triggered, the new emissions must be offset by actual emission reductions achieved by other sources anywhere in the nonattainment area. The emission reductions must be certified by the TCEQ Emissions Banking and Trading staff. The amount of air contaminants that must be offset depends on the classification of the nonattainment area. For example, in a marginal nonattainment area, the offset ratio is 1.10 tons of the air contaminant reduced per ton of new emissions.

In addition to the offset requirement, nonattainment permits must include the lowest achievable emission rate (LAER), as opposed to BACT. LAER is usually more stringent than BACT.

Prevention of Significant Deterioration

Major sources and major modifications in an attainment area are subject to PSD. A source that emits or has the potential to emit a federally regulated NSR pollutant at or above a significant emission rate is considered major for all PSD pollutants. Fugitive emissions are not included in the PSD determination unless it is a type of source that is specifically listed in the Federal Clean Air Act (also known as a named source). PSD permits must include BACT.

In addition, the PSD review requires additional air dispersion modeling to determine if the new emissions will have a negative impact on the NAAQS of the surrounding air quality.

 True False Quiz 

When you're ready, please proceed to Part IV of this module by moving on to the next page.

The Different Kinds of Title V Authorizations

Now that we have covered the different types of NSR (pre-construction) permits in some detail, we will briefly discuss the two different types of Title V (operating) permits.

Site Operating Permit

Site operating permits (SOPs) are Title V permits that contain requirements specific to an individual site and thus, receive case-by-case reviews. The permits contain requirements that apply to the site as a whole, as well as requirements that are specific to individual emission units. All Title V SOPs are subject to public notice and the opportunity for a notice and comment hearing, affected state review (if the site is within 50 miles of an affected state), Environmental Protection Agency (EPA) review, and public petition (which is a 60-day period that occurs after the SOP is issued). SOPs must be renewed at least every five years.

General Operating Permit

General operating permits (GOPs) are issued to cover numerous similar sites, as is authorized under the Federal Clean Air Act. GOPs are analogous to PBRs and standard permits in the NSR program.

The executive director has issued GOPs for oil and gas sites, air curtain incinerators, and municipal solid waste landfills. When the executive director initially issues a GOP, it is subject to public notice, affected state review, EPA review, and public petition.

An owner or operator may obtain an authorization to operate (ATO) under a GOP. The ATO is not subject to individual public notice, affected state review, EPA review, or public petition, as these requirements are fulfilled by the executive director when the GOP is initially issued. GOP applications are enforceable and the ATO (in the form of a grant letter) is issued to the owner or operator. The executive director is required to renew GOPs every five years. In addition, individual ATOs are required to be renewed every five years.

Table: What GOPs Can and Cannot Include

GOPs can only include:

GOPs can't include*:

A site that's in compliance

A compliance plan or permit shield

PBRs/Standard exemptions

A case-by-case NSR permit

Standard permits

Provisions specific to an individual site

*If any of these items need to be included in a Title V permit, an SOP would have to be obtained.

Test Your Understanding 

You've made it. Please work through the last set of quiz questions that follow, which will make you think about everything you've learned throughout this module.

 Quiz Group

Don't forget your certificate (see below). You're now familiar with the types of authorizations handled by the Air Permits Division. The next question is: "How are these authorization requests processed?" If you are ready, please proceed to Module 3 of this training, entitled "Air Permits Division Process."