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            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

        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