pi894.txt

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          Texas Natural Resource Conservation Commission
                      Interoffice Memorandum

To:  All NSR Program Staff and Air Program Regional Staff
Date:  June 1, 1994
Through:  Jeff Saitas, P.E., NSR Program Manager
From:  Standard Exemption Team
Subject:  Artificial Limitations and Standard Exemptions in Nonattainment Areas

Problem A:
     Rule 116.211 does not allow facilities operating under Standard Exemption to represent
emissions based on artificial limitations, such as maximum anticipated throughput, but instead,
requires emission calculations to be based on equipment capacity.

Solution A:
     Facilities operating under Standard Exemption who wish to base their emission rates on
an artificial limitation are encouraged to maintain a PI-8 on site to establish federally enforceable
emission limitations below equipment capacity.  When applying for, or requesting concurrence
of , a Standard Exemption where emissions are based on an artificial limitations, the applicant
should submit a complete PI-8 form (with attached documentation) along with any other required
registration information.

Problem B:
     Rule 116.211 designates maximum allowable emission levels for facilities operating
under Standard Exemption.  The allowable limit in nonattainment areas may be the same as the
definition of a major source (25 tpy of NOx or VOC), especially in the Houston CMSA,
automatically triggering nonattainment applicability review.  The allowable limit also exceeds
the netting trigger (5 tpy) at an existing major source.  In addition, it should be noted that the PI-7 registration form is not an enforceable document with regard to emission levels below those
established in Rule 116.211.

Solution B:
     Facilities operating Standard Exemption in nonattainment areas should be encouraged to
maintain a PI-8 on site to establish federally enforceable emission limitations below the major
source definitions.  When applying for, or requesting concurrence of, a Standard Exemption in a
nonattainment area, the applicant should submit a complete PI-8 form (with attached
documentation) along with other registration information to demonstrate the applicability of
nonattainment review procedures.