SRC-AXB, ARR C.S.S.B. 766 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 766
By: Brown
Natural Resources
4/1/1999
Committee Report (Substituted)


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. C.S.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 proposed, C.S.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(a), Health and Safety Code),
SECTION 3 (Section 382.05101, Health and Safety Code),  SECTION 5 (Sections
382.05193(d), (g), and (i), Sections 382.05194(b), (e), and (g), and
Sections 382.05195(a) and (b), Health and Safety Code) and SECTION 8
(Section 382.0629(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 382.05181 or 382.0519, standard permit under section 382.0518
or permit by rule under Section 382.05182 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  382.05194,
a permit by rule under Section 382.05195, 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, 382.05191-382.05195, as follows: 

Sec. 382.0519. VOLUNTARY EMISSION 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. 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. 

Sec. 382.05191. VOLUNTARY EMISSION 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 which 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 afford 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. VOLUNTARY EMISSION REDUCTION PERMITS: REVIEW AND RENEWAL.
Requires review and renewal of permits issued under Section 382.0519 to be
conducted in accordance with Section 382.055. 

Sec. 382.05193. MULTIPLE PLANT PERMIT. Authorizes the commission to issue a
multiple plant permit for multiple plant sites which 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 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 required additional notice.  Sets forth
required notification informaiton.  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. 382.05194.  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.  

Sec. 382.05195. 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 source" under 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 facilities. 

SECTION 7.  Amends Section 382.058, Health and Safety Code, as follows:

Sec. 382.058. New heading:  PROVISIONS RELATING TO COMMISSION 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 382.05194 or a permit by rule, rather than an exemption, adopted by
the commission under Section 382.05195, 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. 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 10. 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 11.   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 12. Emergency clause.
                        Effective date: upon passage.
SUMMARY OF COMMITTEE CHANGES

SECTION 2.

Amends Section 382.051(b)(3), Health and Safety Code, to delete text
regarding Section 382.0518, Health and Safety Code. 

SECTION 4.  

 Amends Section 382.0511(c), Health and Safety Code, to add text regarding
permits. 

SECTION 5.

 Redesignates existing SECTION 6 as SECTION 5, and deletes existing SECTION
5.   

Amends Section 382.0519, Health and Safety Code, by adding Subsection (e),
regarding requirement of a deferral, and making nonsubstantive changes.   

Amends Section s382.05193(a)-(c), Health and Safety Code, by adding
Subsections (d)-(i), to add text regarding common control, authorized
emission levels, required public notification, commission rulemaking
authority, and multiple plant permit application and approval. 

Redesignates Section 382.05181 as Section 382.05194, Health and Safety
Code.  Makes nonsubstantive changes. 

Redesignates Section 382.05182 as Section 382.05195, Health and Safety
Code.  Clarifies commission rulemaking authority. 
 
SECTION 6.  

 Redesignates existing SECTION 7 as SECTION 6.

SECTION 7. 

Redesignates existing SECTION 8 as SECTION 7, creates a new heading, and
makes conforming changes. 

SECTIONS 8-10.

 Redesignated from existing SECTIONS 9-11.

SECTION 11.

 Adds text regarding the initiation of enforcement actions, and the
application of this section.