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.