SRC-AXB, ARR S.B. 766 76(R)BILL ANALYSIS
Senate Research CenterS.B. 766
By: Brown
Natural Resources
7/24/1999
Enrolled
DIGEST
Currently, Texas law requires a person to obtain a permit from the Texas
Natural Resource Conservation Commission (commission) prior to beginning
work on the construction of a new facility or modification of an existing
facility which may emit air contaminants. S.B. 766 authorizes the
commission to issue a voluntary emissions reduction permit to facilities
not subject to the requirements of obtaining permits.
PURPOSE
As enrolled, S.B. 766 regulates the issuance of certain permits for the
emission of air contaminants.
RULEMAKING AUTHORITY
Rulemaking authority is granted to the Texas Natural Resource Conservation
Commission in SECTION 2 (Section 382.051(b), Health and Safety Code),
SECTION 3 (Section 382.05101, Health and Safety Code), SECTION 5 (Sections
382.05193(b) and (c), Sections 382.05194(d), (g) and (i);Sections 382.05195
(b),(e), and (h); Sections 382.05196(a) and (b), Health and Safety Code)
and SECTION 8 (Section 382.062(b), Health and Safety Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subdivision (9) Section 382.003, Health and Safety Code,
to redefine "modification of existing facility."
SECTION 2. Amends Sections 382.051(a) and (b), Health and Safety Code, to
authorize the Texas Natural Resource Conservation Commission (commission)
to issue a permit to operate an existing facility pursuant to a voluntary
emissions reduction permit. Authorizes the commission to issue a standard
permit for similar facilities, rather than numerous facilities subject to
Section 382.0518, Health and Safety Code. Authorizes the commission, by
rule, to issue a permit for types of facilities that will not significantly
contribute air contaminants to the atmosphere, and a multiple plant permit
for existing facilities at multiple locations subject to Section 382.0518
or 382.0519, Health and Safety Code. Makes conforming changes.
SECTION 3. Amends Chapter 382C, Health and Safety Code, by adding Section
382.05101, as follows:
Sec. 382.05101. DE MINIMIS AIR CONTAMINANTS. Authorizes the commission to
develop, by rule, the criteria to establish a de minimis level of air
contaminants for facilities or groups of facilities below which no permit
under Section 382.0518 or 382.0519, standard permit under Section 382.05195
or a permit by rule under Section 382.05196 will be required.
SECTION 4. Amends Sections 382.0511(a) and (c), Health and Safety Code, to
authorize the commission to consolidate standard permits and permits by
rule, into a single permit. Authorizes the commission to authorize changes
in a federal source to proceed before the owner or operator obtains a
federal source operating permit or revisions to a federal operating permit
if the changes are de minimis under Section 382.05101 or the operator has
obtained a preconstruction permit or permit amendment required by Section
382.0518, or is operating under a standard permit under Section 382.05195,
a permit by rule under Section 382.05196, or an exemption allowed under
Section 382.057, Health and Safety Code. Deletes text regarding a certain
date of issuance of a permit and rulemaking.
SECTION 5. Amends Chapter 382C, Health and Safety Code, by adding Sections
382.0519, and 382.05191-382.05195, as follows:
Sec. 382.0519. VOLUNTARY EMISSIONS REDUCTION PERMIT. Authorizes the owner
or operator of an existing, unpermitted facility not subject to the
requirement to obtain a permit under Section 382.0518(g) to apply for a
permit to operate that facility under this section. Requires the commission
to grant within a reasonable time a permit under this section if, from the
information available to the commission, including information presented at
any public hearing or through written comment, the commission finds that
the facility will use an air pollution control method at least as
beneficial as that described in Section 382.003(9)(E)(ii), considering the
age and remaining useful life of the facility, except as provided by
Subdivision (2); and for a facility located in a near-nonattainment area,
the commission makes certain findings. Prohibits the commission from
granting the permit under this section, if the commission finds that the
emissions from the facility will contravene the standards under Subsection
(b), or the intent of this chapter, including protection of the public's
health and physical property. Requires the person planning the modification
to comply with Section 382.0518, before work is begun on the modification
of a facility previously permitted under this section. Authorizes the
deferral of required reductions, under certain conditions. Requires
deferral to be based on a certain prioritization necessary to meet local,
regional, and statewide air quality needs. Requires the commission to give
priority to the processing of applications for the issuance, amendment, or
renewal of a permit for those facilities authorized under Section
382.0518(g) that are located less than two miles from the outer perimeter
of a school, child day-care facility, hospital, or nursing home.
Sec. 382.05191. VOLUNTARY EMISSIONS REDUCTION PERMIT: NOTICE AND HEARING.
Requires an applicant for a permit under Section 382.0519 to publish notice
of intent to obtain the permit in accordance with Section 382.056.
Authorizes the commission to authorize an applicant for a permit for a
facility that constitutes or is part of a small business stationary source
as defined in Section 382.0365(g)(2) to provide notice using an alternative
means if the commission finds that the proposed method will result in equal
or better communication with the public, considering the effectiveness of
the notice in reaching potentially affected persons, cost, and consistency
with federal requirements. Authorizes the commission to provide an
opportunity for a public hearing and the submission of public comment and
send notice of a decision on an applicant for a permit under Section
382.0519 in the same manner as provided by Section 382.0561 and 382.0562.
Provides that a person affected by a decision of the commission to issue or
deny a voluntary emission reduction may move for rehearing and is entitled
to judicial review under Section 382.032.
Sec. 382.05192. REVIEW AND RENEWAL OF VOLUNTARY EMISSIONS REDUCTION AND
MULTIPLE PLANT PERMITS. Requires review and renewal of permits issued under
Section 382.0519 or 382.05194 to be conducted in accordance with Section
382.055.
Sec. 382.05193. EMISSIONS PERMITS THROUGH EMISSIONS REDUCTION. Authorizes
the commission to issue a permit under Section 382.0519 for a facility that
takes certain action. Requires the commission by rule to establish a
program to grant emissions reduction credits to a facility if the owner or
operator conducts an emissions reduction project to offset the facility's
excessive emissions. Requires the emissions reduction project to reduce
emissions in the airshed, as defined by commission rule, in which the
facility is located, to be eligible for a credit to offset a facility's
emissions. Requires the commission by rule to provide that an emissions
reduction project must reduce net emissions from one or more sources in
this state in an amount and type sufficient to prevent air pollution to a
degree comparable to the amount of the reduction in the facility's
emissions that would be necessary to meet the permit requirement. Requires
qualifying emissions reduction projects to include certain items. Requires
a permit issued under Section 382.0519 for a facility participating in the
program established under this section to be conditioned on the successful
and timely completion of the project or projects for which the facility
owner or operator acquires the credits. Requires the commission to require
the owner or operator of the facility to have taken certain action, to
renew the permit of a facility permitted under Section 382.0519 with
credits acquired under the program established under this section.
Sec. 382.05194. MULTIPLE PLANT PERMIT. Authorizes the commission to issue a
multiple plant permit for multiple plant sites that are owned or operated
by the same person or persons under common control if the commission finds
certain actions have been taken. Prohibits a permit issued under this
section of emissions from authorizing emissions from any of the facilities
authorized under the permit that exceed that facility's highest historic
annual rate, or permit authorized levels. Requires the commission to
publish notice of a proposed multiple plant permit, and sets forth
notification procedures. Authorizes the commission, by rule, to require
additional notice. Sets forth required notification informaton. Sets forth
provisions for public meetings for existing facilities. Requires the
commission to issue a written response to public comments under certain
conditions. Requires the commission to establish, by rule, procedures for
multiple plant permit application approval. Sets forth circumstances
wherein a permit is not subject to Chapter 2001, Government Code.
Authorizes the commission to adopt rules to administer and delegate
administration of this section.
Sec. 382.05195. STANDARD PERMIT. Authorizes the commission to issue a
standard permit for new or existing similar facilities if the commission
finds that certain actions can be taken. Requires the commission to publish
notice in certain publications in the state designated by the commission's
rule. Authorizes the commission, by rule, to require additional notice to
be given. Requires the notice to include an invitation for written comments
by the public to the commission regarding the proposed standard permit and
to be published not later than a certain date. Requires the commission to
hold a public meeting to provide an additional opportunity for public
comment. Requires the commission to give notice described in Subsection (b)
not later than a certain date before the date of the meeting. Requires the
commission to issue a written response to comments on the permit at the
same time that the commission issues or denies the permit, if the
commission receives public comment relating to issuance of a standard
permit. Requires the commission to establish the procedures for application
and approval for the use of a standard permit. Provides that the issuance,
amendment, or revocation of a standard permit by the commission is not
subject to Chapter 2001, Government Code. Authorizes the commission to
adopt rules as necessary to implement and administer this section and to
delegate to the executive director under Section 382.061 the authority to
issue, amend, or revoke a standard permit. Requires the commission by rule
to establish procedures for the amendment of a standard permit and for an
application for, the issuance of, the renewal of, and the revocation of an
authorization to use a standard permit. Requires the facility authorized to
emit air contaminants under a standard permit to comply with an amendment
to the standard permit beginning on the date the facility's authorization
to use the standard permit is renewed or the date the commission otherwise
provides. Provides that before the date the facility is required to comply
with the amendment, the standard permit, as it read before the amendment,
applies to the facility. Provides that the adoption or amendment of a
standard permit or the issuance, renewal, or revocation of an authorization
to use a standard permit is not subject to Chapter 2001, Government Code.
Authorizes the commission to adopt rules as necessary to implement and
administer this section. Authorizes the commission to delegate to the
executive director the authority to issue, amend, renew, or revoke an
authorization to use a standard permit.
Sec. 382.05196. PERMITS BY RULE. Authorizes the commission to adopt
permits, by rule, for certain types of facilities if it is found on
investigation that certain types of facilities will not make a significant
contribution of air contaminants to the atmosphere. Prohibits the
commission from adopting a permit, by rule, authorizing any facility
defined as a "major" under any applicable preconstruction permitting
requirements of the federal Clean Air Act or regulations adopted under that
Act. Provides that nothing in this subsection shall be construed to limit
the commission's general power to control the state's air quality under
Section 382.011(a). Requires the commission to adopt rules specifically
defining the terms and conditions for a permit by rule under this section.
SECTION 6. Amends Section 382.057(a), Health and Safety Code, to delete
text regarding certain types of facilities.
SECTION 7. Amends Section 382.058, Health and Safety Code, as follows:
Sec. 382.058. New heading: PERMITS BY RULE OR STANDARD PERMITS FOR
CONSTRUCTION OF CERTAIN CONCRETE PLANTS. Prohibits a person from beginning
construction on any concrete plant that performs wet batching, or central
mixing under a standard permit under Section 382.05195 or a permit by rule,
rather than an exemption, adopted by the commission under Section
382.05196, rather than Section 382.057, unless the person has complied with
the notice and opportunity for hearing provisions under Section 382.056.
SECTION 8. Amends Section 382.062(b), Health and Safety Code, to authorize
the commission to adopt rules relating to charging and collecting a fee for
an exemption for a permit, a permit by rule, or for a voluntary emission
reduction permit, for a multiple plant permit. Makes conforming changes.
SECTION 9. Amends Section 382.0621(d), Health and Safety Code, to prohibit
the commission from imposing certain fees, except as provided by this
section. Requires the commission to take certain action, for a facility
that is not subject to the requirement to obtain a permit under Section
382.0518 (g) that does not have a permit application pending, on and after
September 1, 2001.
SECTION 10. Authorizes the commission to adopt as soon as practicable after
the effective date of this Act, any rules necessary to implement the
changes in law made by this Act.
SECTION 11. Requires the commission to prepare and distribute to the
governor, lieutenant governor, the speaker of the house of representatives,
the chairman of the Senate Committee on Natural Resources, and the chairman
of the House Committee on Environmental Regulations a report on the number
of companies that have obtained or applied for a a permit under Section
382.0519, Health and Safety Code, as added by this Act, and the reductions
in emissions anticipated to result from issuance of such permits not later
than January 15, 2001.
SECTION 12. Prohibits the commission from initiating enforcement actions
against a person who files an application for a certain permit on or before
August 31, 2001. Limits the application of this section to exclude a
facility modification that occurs after March 1, 1999.
SECTION 13. Provides that if S.B. 7, Acts of the 76th Legislature, Regular
Session, 1999, is enacted and becomes law, to the extent that any
provisions of law amended by this Act conflict with a provision of S.B. No.
7 that specifically relates to air contaminant emissions, the provisions of
S.B. No. 7 prevails, irrespective of the relative dates of enactment.
SECTION 14. Emergency clause.
Effective date: upon passage.