Texas Natural Resource Conservation Commission Interoffice Memorandum To: New Source Review (NSR) Program Staff Date: August 31, 1994 From: Jeff Saitas, P.E., NSR Program Director Subject: Implementation of Regulation VI, Rule 116.116(c) 1. The subject rule requires that changes to permitted facilities that have been authorized by standard exemption (STDX), rather than amendment, to be "incorporated into that facility's permit" when it is next amended or renewed. The purpose of this memo is to provide instructions for implementation of this requirement. 2. The intent of this rule is to provide permit holders with means to expeditiously make needed modifications to permitted facilities by STDX, but ensure that the modified facilities are ultimately permitted. The incorporation of these facilities operating under STDX into subsequent permit amendments or renewals terminates authorization by exemption and initiates authorization under permit. This will be accomplished as outlined below. 3. Procedures a. There is no one source that identifies the STDX that would need to be incorporated. The database is a good source for all exemptions that have been registered (XRVW) or claimed (XLTR) since June 1993 and the permit file sometimes contains documentation on STDX previously registered or claimed with regions. However, requesting the applicant to provide this information is probably the most effective way to identify them. b. The next step is to determine from those exemptions that, exist at a facility, those that were specifically a modification to the facility whose permit is being amended or renewed. Incorporation applies only to changes that have the potential to cause a modification to a permitted facility, i.e. modifications to the permitted facility that change character of emissions, increase emissions or alter the method of control. c. Incorporation into the permit amendment or renewal will take the form of adding the STDX emission points, sources, contaminants and emission rates to the maximum allowable emission rate table, and including any pertinent operating limitations, recordkeeping requirements, etc. in the special provisions. d. The following are considerations when incorporating STDX into permits during amendment or renewal: 1. STDX emission rates do not count toward emission increases for determining whether public notice is required for amendments. 2. STDX process, materials or equipment are not subject to BACT evaluation for the amendment under review. 3. STDX emissions will not be included with those used in determining the necessity for modeling and health effects evaluation (under the Interim Policy for Modeling and Effects Review Applicability Guidance Document for Non-Criteria Pollutants) for amendments. STDX emissions will only be included in health effects evaluation of contaminants emitted from the facility when plantwide modeling is required to be performed by the Interim Policy. 4. STDX capital cost will not be included with other capital costs in determining amendment fee, but STDX emissions will be included with those of the permitted facility in determining renewal fee. e. If the STDX is registered or has been acknowledged by letter from the TNRCC as being exempt, the registration will be voided at the time of incorporation. This can be accomplished by these three steps: 1. Indicate in the provisions that the permit now includes previously standard exempted facility(ies) and/or in the cover letter that transmits the amended or renewed permit. Transfer the documentation in the STDX file to the permit file so that the representations in the permit file are complete. 2. Enter similar explanatory information in the remarks section of the Point Source Database (PSDB) for the permit being amended or renewed. 3. Void the PSDB for the STDX registration, as applicable.