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          Texas Natural Resource Conservation Commission
                      Interoffice Memorandum

To:  NSRPD Permit Engineers
Date:  March 17, 1999
From:  Johnny Vermillion, P.E., Technical Specialist, NSRPD Chemical Section
David Howell, P.E., Team Leader, NSRPD Core Section
Subject:  Permit Renewals During Flexible Permit Reviews

Issue:  Flexible permits may contain facilities which are covered under various individual state
permit numbers.  How do we handle the situation where one or more of the individual state
permits come up for renewal during the review and before the issuance of the flexible permit?

The flexible permit application should indicate all state permits, standard permits and exemptions
which are to be incorporated into the flexible permit.  Following are three primary issues
concerning renewals of state permits which may need to be addressed in the content of a flexible
permit review:  (1) permit renewal application, (2) permit renewal fees and (3) administrative
voidance of a pending flexible permit.

(1)  Permit Renewal Application - A separate permit renewal application(s) will not be required if
all sources subject to renewal are to be re-permitted under the flexible permit.  The submittal of
the flexible permit will be considered as the renewal application place holder for permits being
incorporated into the flexible permit review.  The applicant should submit a PI-1R application
form during the flexible permit review process for any/all state permit which trigger the permit
renewal procedures. The application form will be used to identify to the permit engineer that a
state permit to be incorporated into the flexible permit has entered its permit renewal cycle.  All
sources contained in a permit subject to renewal will be reviewed with the flexible permit review
and are considered to be reissued as a new permit, the flexible permit.

Public notice procedures for the flexible permit will follow those outlined in Section 116.740,
Public Notice and Comment.  With the issuance of the flexible permit, all permits subject to
renewal and incorporated into the flexible permit, will be voided.  

(2)  Permit Renewal Fees - The flexible permit and the permit renewal fee are both based on the
quantity of emissions to the atmosphere.  Since both are emissions based fees, it would appear
that requiring both the flexible permit fee and the renewal fee would be double counting.  The
flexible permit fee as described in Section 116.750 will be used to cover the fees for all actions
contained within the flexible permit review.  

NOTE:  The permit fee for the issuance of the initial flexible permit is based on the total emissions
from all facilities (previously permitted, grandfathered or exempt) covered by the flexible permit. 
Once a flexible permit is issued, fees for any subsequent change to the flexible permit will be
based on the incremental emissions increase with the minimum fee being $450.

(3)  Administrative Voidance for a Pending Flexible Permit - Should it become necessary to
administratively void a flexible permit application, the applicant shall be informed that the renewal
process must be completed for any state permit which triggered the renewal process up to that
point in time.  This should be done with the 15 day letter.  Completion of the renewal process
would include submittal of the process description, process flow diagram, emission rates and
calculations, appropriate renewal fee and the completion of the public notice requirements.