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                  Texas Air Control Board
            Austin                       Texas

To:  Permit Engineers, Regional Directors
From:  Lawrence E. Pewitt, P.E., Director, Permits Program
Date:  June 17, 1991, Updated April 11, 1996
Subject:  Use of Standard Exemptions at Permitted Facilities

It is often necessary to decide what Regulation VI
requirements may be triggered when standard exemptions are
used at existing grandfather or permitted facilities.  To
assist in evaluating these situations please use the following

Use of exemptions at grandfathered facilities would trigger a
permit review for the grandfathered unit via Regulation VI,
Rule 116.1 now 116.110, only if the addition of the exempted
facility will cause emissions from the existing unit to
significantly increase without consideration of abatement
system changes.  If, for example, an exempted tank can be
added at a grandfathered refinery and the addition of the tank
will not cause existing emissions to increase, then the
exemption may be appropriate and a permit will not be required
for the existing facilities.  

Otherwise, construction of the exempted facility may be
allowed but a permit must be obtained for the grandfathered
unit before the emissions increase from the grandfathered unit
unless the emissions increase qualifies under an exemption.

Please see Regulation 30 TAC 116.116(e) for additional information.

If the exempted facility is to be added at a permit unit,
then consideration must be given to Regulation VI, Rule 116.5
now 116.116(a) which states, in part, that "It shall be
unlawful for any person to vary from such representation in an
application for a permit or in an exemption request if the
change will cause a change in method of control of emissions,
the character of emissions or will result in an increase in
the discharge of the various emissions unless he first makes
application to amend his permit."

Therefore, if the exempted facility will cause the permit
unit to change method of control, change character of the
emissions or increase emissions, then it will be necessary to
roll this exemption into the permit at a later date when the
permit is either amended or renewed under Rule 116.116(c). 
However, construction and operation of the exempted facility
may be commenced pursuant to Rule 116.6 now 116.211.  

Please be advised that future permits of special concern will
include special conditions which prohibit the use of standard
exemptions at the facility if Rule 116.5 now 116.116(a) will
be triggered.  

Thank you for your ongoing cooperation in implementing these