BILL ANALYSIS

Environmental Regulation Committee

By: Nixon (Holzheauser)
April 27, 1995
Committee Report (Amended)

BACKGROUND

Currently, facilities that are required to obtain an air permit
must complete a process that includes modelling for the potential
health effect, a review to determine if the facility is using the
best available control technology, and a contested case hearing
offered to the affected persons.  Facilities are also required to
apply for a permit amendment and again complete the program
whenever the facility intends to change its processes or equipment. 
The permitting process has become longer since facilities have
become larger and more complex, which has resulted in increasing
costs to the Texas Natural Resource Conservation Commission.

PURPOSE

As proposed, S.B. 1126 redefines "modification of existing
facility"; requires the Texas Natural Resource Conservation
Commission to consider specific factors in determining whether a
proposed change at a facility will allow an increase in allowable
air pollution.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 382.003(9), Health and Safety Code, to
redefine "modification of existing facility" to mean a change in a
facility (rather than a stationary source) in a manner that
increases the amount of any air contaminant (rather than
pollutant).  New exceptions to the term are added as follows:
     (E) a physical change in a facility that does not result in a
net increase in allowable air emissions if the facility has
received a preconstruction permit or the facility has been exempted
no earlier than 120 months, or used pollution control equipment
that is at least as effective as best available control technology.
     (F) a physical change in a facility where the change is within
the scope of a flexible permit.
     (G) a change in the method of operation of a natural gas
processing facility connected to a natural gas gathering pipeline
which does not result in an annual emission rate of a pollutant in
excess of a specified volume, with certain provisions.

SECTION 2. Amends Section 382.0512, Health and Safety Code, as
follows:

     Sec.  382.0512.  MODIFICATION OF EXISTING FACILITY.  (a)
     Prohibits the Texas Natural Resource Conservation Commission
     (board), in determining whether a proposed change at a
     facility is a modification, from considering the effect on
     emissions of any air pollution control method, or any
     decreases in emissions from other sources, except as provided
     in Subsection (b).
     (b) Requires the board, in determining whether a proposed
     change at an existing facility results in a net increase in
     allowable emissions, to consider the effect on emissions of
     any air pollution control method applied to a facility; any
     decreases in allowable emissions from other facilities that
     have received a preconstruction permit no earlier than 120
     months before the change; any decreases in actual emissions
     from other facilities that meet specific criteria.

     (c) Prohibits anything in this section from being construed to
     limit the application of other state or federal requirements. 
     Prohibits this section from limiting the board's authority
     under Subchapter D.

SECTION 3. Amends Section 382.0518, Health and Safety Code, by
adding Subsection (h), to provide that a reference to a permit
includes an amendment to a permit.

SECTION 4. Effective date: September 1, 1995.

SECTION 5. Emergency clause.

EXPLANATION OF AMENDMENTS

Committee amendment number one amends SB 1126 as follows:
     (1) In SECTION 1 of the bill, in §382.003(9)(e)(i), Health and
Safety Code, change to read "has received a preconstruction permit,
permit amendment, or has been exempted . . ."
     (2) In SECTION 2 of the bill, in subsection (b) of §382.0512,
Health and Safety Code, change to read "In determining whether a
proposed change at an existing facility that meets the criteria of
Section 382.003(9)(e) results in a net increase . . ."  Strike the
words "under Section 382.003(9)(E).
     (3) In SECTION 2 of the bill, in subsection (b)(2) of
§382.0512, Health and Safety Code, change to add permit amendments
to factors to be considered in determining if a decrease in
allowable emissions will occur.
     (4) In SECTION 2 of the bill, §382.0512, Health and Safety
Code, strike the existing subsection (c) and add a new subsection
(c) which states that nothing in this subsection shall be construed
to limit the application of state and federal requirements, nor
limit the board's power of enforcement under this chapter.
     (5) Strike SECTION 4 and SECTION 5 of the bill which are a
September 1, 1995 effective date and an emergency clause, and
substitute a new SECTION 4 which is an emergency clause with an
immediate effective date.

SUMMARY OF COMMITTEE ACTION

SB 1126 was considered by the House Committee on Environmental
Regulation in a formal meeting on April 28, 1995.  Committee
amendment number one was offered and was adopted without objection.

There were no other amendments.

SB 1126 was reported favorably as amended, with the recommendation
that it do pass and be printed, by a record vote of six (6) ayes,
no (0) nays, no (0) pnv, and three (3) absent.