By:  Brown                                             S.B. No. 766
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the issuance of certain permits for the emission of air
 1-2     contaminants.
 1-4           SECTION 1.  Subdivision (9), Section 382.003, Health and
 1-5     Safety Code, is amended to read as follows:
 1-6                 (9)  "Modification of existing facility" means any
 1-7     physical change in, or change in the method of operation of, a
 1-8     facility in a manner that increases the amount of any air
 1-9     contaminant emitted by the facility into the atmosphere or that
1-10     results in the emission of any air contaminant not previously
1-11     emitted.  The term does not include:
1-12                       (A)  insignificant increases in the amount of any
1-13     air contaminant emitted that is authorized by one or more
1-14     commission exemptions;
1-15                       (B)  insignificant increases at a permitted
1-16     facility;
1-17                       (C)  maintenance or replacement of equipment
1-18     components that do not increase or tend to increase the amount or
1-19     change the characteristics of the air contaminants emitted into the
1-20     atmosphere;
1-21                       (D)  an increase in the annual hours of operation
1-22     unless the existing facility has received a preconstruction permit
1-23     or has been exempted, pursuant to Section 382.057, from
1-24     preconstruction permit requirements;
 2-1                       (E)  a physical change in, or change in the
 2-2     method of operation of, a facility that does not result in a net
 2-3     increase in allowable emissions of any air contaminant and that
 2-4     does not result in the emission of any air contaminant not
 2-5     previously emitted, provided that the facility:
 2-6                             (i)  has received a preconstruction permit
 2-7     or permit amendment or has been exempted pursuant to Section
 2-8     382.057 from preconstruction permit requirements no earlier than
 2-9     120 months before the change will occur; or
2-10                             (ii)  uses, regardless of whether the
2-11     facility has received a permit, an air pollution control method
2-12     that is at least as effective as the best available control
2-13     technology, considering technical practicability and economic
2-14     reasonableness, that the board required or would have required for
2-15     a facility of the same class or type as a condition of issuing a
2-16     permit or permit amendment 120 months before the change will occur;
2-17                       (F)  a physical change in, or change in the
2-18     method of operation of, a facility where the change is within the
2-19     scope of a flexible permit or a multiple plant permit; or
2-20                       (G)  a change in the method of operation of a
2-21     natural gas processing, treating, or compression facility connected
2-22     to or part of a natural gas gathering or transmission pipeline
2-23     which does not result in an annual emission rate of a pollutant in
2-24     excess of the volume emitted at the maximum designed capacity,
2-25     provided that the facility is one for which:
2-26                             (i)  construction or operation started on
 3-1     or before September 1, 1971, and at which either no modification
 3-2     has occurred after September 1, 1971, or at which modifications
 3-3     have occurred only pursuant to standard exemptions; or
 3-4                             (ii)  construction started after September
 3-5     1, 1971, and before March 1, 1972, and which registered in
 3-6     accordance with Section 382.060 as that section existed prior to
 3-7     September 1, 1991.
 3-8           SECTION 2.  Subsections (a) and (b), Section 382.051, Health
 3-9     and Safety Code, are amended to read as follows:
3-10           (a)  The commission may issue a permit:
3-11                 (1)  to construct a new facility or modify an existing
3-12     facility that may emit air contaminants; [or]
3-13                 (2)  to operate an existing facility pursuant to a
3-14     voluntary emissions reduction permit; or
3-15                 (3)  to operate a federal source.
3-16           (b)  To assist in fulfilling its authorization provided by
3-17     Subsection (a), the commission may issue:
3-18                 (1)  special permits for certain facilities;
3-19                 (2)  a general permit [developed by rule] for numerous
3-20     similar sources subject to Section 382.054;
3-21                 (3)  a standard permit [developed by rule] for numerous
3-22     similar facilities subject to Section 382.0518;
3-23                 (4)  a permit by rule for types of facilities that will
3-24     not significantly contribute air contaminants to the atmosphere;
3-25                 (5)  a single federal operating permit or
3-26     preconstruction permit for multiple federal sources or facilities
 4-1     located at the same site;
 4-2                 (6)  a multiple plant permit for existing facilities at
 4-3     multiple locations subject to Section 382.0518 or 382.0519; or
 4-4                 (7) [(5)]  other permits as necessary.
 4-5           SECTION 3.  Subchapter C, Chapter 382, Health and Safety
 4-6     Code, is amended by adding Section 382.05101 to read as follows:
 4-7           Sec. 382.05101.  DE MINIMIS AIR CONTAMINANTS.  The commission
 4-8     may develop by rule the criteria to establish a de minimis level of
 4-9     air contaminants for facilities or groups of facilities below which
4-10     no permit under Section 382.0518 or 382.0519, standard permit under
4-11     Section 382.05181, or permit by rule under Section 382.05182 will
4-12     be required.
4-13           SECTION 4.  Subsections (a) and (c), Section 382.0511, Health
4-14     and Safety Code, are amended to read as follows:
4-15           (a)  The commission may consolidate into a single permit[:]
4-16                 [(1)]  any permits, special permits, standard permits,
4-17     permits by rule, or exemptions for a facility or federal source
4-18     [issued by the commission before December 1, 1991; or]
4-19                 [(2)  any permit issued by the commission on or after
4-20     December 1, 1991, with any permits, special permits, or exemptions
4-21     issued or qualified for by that date].
4-22           (c)  The commission [by rule] may authorize changes in a
4-23     federal source to proceed before the owner or operator obtains a
4-24     federal operating permit or revisions to a federal operating permit
4-25     if the changes are de minimis under Section 382.05101 or the owner
4-26     or operator has obtained a preconstruction permit or permit
 5-1     amendment required by Section 382.0518 or an exemption allowed
 5-2     under Section 382.057.
 5-3           SECTION 5.  Subchapter C, Chapter 382, Health and Safety
 5-4     Code, is amended by adding Sections 382.05181 and 382.05182 to read
 5-5     as follows:
 5-6           Sec. 382.05181.  STANDARD PERMIT.  (a)  The commission may
 5-7     issue a standard permit for similar facilities if the commission
 5-8     finds that:
 5-9                 (1)  the standard permit can be readily enforced;
5-10                 (2)  the commission can adequately monitor compliance
5-11     with the terms of the standard permit; and
5-12                 (3)  for facilities subject to Section 382.0518(a)-(d),
5-13     the facility will use control technology at least as effective as
5-14     that described in Section 382.0518(b).
5-15           (b)  The commission shall publish notice of a proposed
5-16     standard permit in the Texas Register and in one or more statewide
5-17     or regional newspapers, designated by the commission by rule, that
5-18     will, in the commission's judgment, provide reasonable notice
5-19     throughout the state.  If the standard permit will be effective for
5-20     only part of the state, the notice shall be published in a
5-21     newspaper of general circulation in the area to be affected.  The
5-22     commission may by rule require additional notice to be given.  The
5-23     notice must include an invitation for written comments by the
5-24     public to the commission regarding the proposed standard permit and
5-25     shall be published not later than the 30th day before the
5-26     commission issues the standard permit.
 6-1           (c)  The commission shall hold a public meeting to provide an
 6-2     additional opportunity for public comment.  The commission shall
 6-3     give notice of a public meeting under this subsection as part of
 6-4     the notice described in Subsection (b) not later than the 30th day
 6-5     before the date of the meeting.
 6-6           (d)  If the commission receives public comment relating to
 6-7     issuance of a standard permit, the commission shall issue a written
 6-8     response to comments on the permit at the same time that the
 6-9     commission issues or denies the permit. The response is available
6-10     to the public and shall be mailed to each person who made a
6-11     comment.
6-12           (e)  The commission shall establish, by rule, the procedures
6-13     for application and approval for the use of a standard permit.
6-14           (f)  The issuance, amendment, or revocation of a standard
6-15     permit by the commission is not subject to Chapter 2001, Government
6-16     Code.
6-17           (g)  The commission may adopt rules as necessary to implement
6-18     and administer this section and may delegate to the executive
6-19     director under Section 382.061 the authority to issue, amend, or
6-20     revoke a standard permit.
6-21           Sec. 382.05182.  PERMITS BY RULE.  (a)  Consistent with
6-22     Section 382.051, the commission may adopt permits by rule for
6-23     certain types of facilities if it is found on investigation that
6-24     such types of facilities will not make a significant contribution
6-25     of air contaminants to the atmosphere.  The commission may not
6-26     adopt a permit by rule authorizing any facility defined as "major"
 7-1     under the federal Clean Air Act (42 U.S.C. Section 7401 et seq.) or
 7-2     regulations adopted under that Act.  Nothing in this subsection
 7-3     shall be construed to limit the commission's general power to
 7-4     control the state's air quality under Section 382.011(a).
 7-5           (b)  The commission shall adopt rules specifically defining
 7-6     the terms and conditions for a permit by rule under this section in
 7-7     a nonattainment area as defined by Title I of the federal Clean Air
 7-8     Act (42 U.S.C. Section 7401 et seq.).
 7-9           SECTION 6.  Subchapter C, Chapter 382, Health and Safety
7-10     Code, is amended by adding Sections 382.0519, 382.05191, 382.05192,
7-11     and 382.05193 to read as follows:
7-12           Sec. 382.0519.  VOLUNTARY EMISSION REDUCTION PERMIT.
7-13     (a)  Prior to September 1, 2001, the owner or operator of an
7-14     existing, unpermitted facility not subject to the requirement to
7-15     obtain a permit under Section 382.0518(g) may apply for a permit to
7-16     operate that facility under this section.
7-17           (b)  The commission shall grant within a reasonable time a
7-18     permit under this section if, from the information available to the
7-19     commission, including information presented at any public hearing
7-20     or through written comment, the commission finds that the facility
7-21     will use an air pollution control method at least as beneficial as
7-22     that described in Section 382.003(9)(E)(ii), considering the age
7-23     and remaining useful life of the facility.
7-24           (c)  If the commission finds that the emissions from the
7-25     facility will contravene the standards under Subsection (b), or
7-26     that there is an indication that the emissions from the facility
 8-1     will contravene the intent of this chapter, including protection of
 8-2     the public's health and physical property, the commission may not
 8-3     grant the permit under this section.
 8-4           (d)  Before work is begun on the modification of a facility
 8-5     previously permitted under this section, the person planning the
 8-6     modification must comply with Section 382.0518.
 8-8     AND HEARING.  (a)  An applicant for a permit under Section 382.0519
 8-9     shall publish notice of intent to obtain the permit in accordance
8-10     with Section 382.056.
8-11           (b)  The commission may authorize an applicant for a permit
8-12     for a facility which constitutes or is part of a small business
8-13     stationary source as defined in Section 382.0365(g)(2) to provide
8-14     notice using an alternative means if the commission finds that the
8-15     proposed method will result in equal or better communication with
8-16     the public, considering the effectiveness of the notice in reaching
8-17     potentially affected persons, cost, and consistency with federal
8-18     requirements.
8-19           (c)  The commission shall afford an opportunity for a public
8-20     hearing and the submission of public comment and send notice of a
8-21     decision on an application for a permit under Section 382.0519 in
8-22     the same manner as provided by Sections 382.0561 and 382.0562.
8-23           (d)  A person affected by a decision of the commission to
8-24     issue or deny a voluntary emission reduction permit may move for
8-25     rehearing and is entitled to judicial review under Section 382.032.
8-26           Sec. 382.05192.  VOLUNTARY EMISSION REDUCTION PERMITS:
 9-1     REVIEW AND RENEWAL.  Review and renewal of permits issued under
 9-2     Section 382.0519 shall be conducted in accordance with Section
 9-3     382.055.
 9-4           Sec. 382.05193.  MULTIPLE PLANT PERMIT.  (a)  The commission
 9-5     may issue a multiple plant permit for multiple existing facilities
 9-6     owned or operated by the same person if the commission finds that:
 9-7                 (1)  the aggregate rate of emission of air contaminants
 9-8     to be authorized under the permit does not exceed:
 9-9                       (A)  for previously permitted facilities, the
9-10     rate that would be authorized under Section 382.0518; or
9-11                       (B)  for existing unpermitted facilities not
9-12     subject to the requirement to obtain a preconstruction
9-13     authorization under Section 382.0518(g), the rate that would be
9-14     authorized under Section 382.0519; and
9-15                 (2)  there is no indication that the emissions from the
9-16     facilities will contravene the intent of this chapter, including
9-17     protection of the public's health and physical property.
9-18           (b)  A permit issued under this section shall provide that
9-19     the emissions from any of the facilities authorized under the
9-20     permit shall not exceed that facility's highest historic annual
9-21     rate.  In the absence of records extending back to the original
9-22     construction of the facility, best engineering judgment shall be
9-23     used to demonstrate the facility's highest historic annual rate to
9-24     the commission.
9-25           (c)  Emissions control equipment previously installed at a
9-26     facility permitted under this section may not be removed or
 10-1    disabled unless the action is undertaken to maintain or upgrade the
 10-2    control equipment.
 10-3          SECTION 7.  Subsection (a), Section 382.057, Health and
 10-4    Safety Code, is amended to read as follows:
 10-5          (a)  Consistent with Section 382.0511, the commission by rule
 10-6    may exempt from the requirements of Section 382.0518 changes within
 10-7    any facility [and certain types of facilities] if it is found on
 10-8    investigation that such changes [or types of facilities] will not
 10-9    make a significant contribution of air contaminants to the
10-10    atmosphere.  The commission by rule shall exempt from the
10-11    requirements of Section 382.0518 or issue a standard permit for the
10-12    installation of emission control equipment that constitutes a
10-13    modification or a new facility, subject to such conditions
10-14    restricting the applicability of such exemption or standard permit
10-15    that the commission deems necessary to accomplish the intent of
10-16    this chapter.  The commission may not exempt [any facility or] any
10-17    modification of an existing facility defined as "major" under the
10-18    federal Clean Air Act or regulations adopted under that Act.
10-19    Nothing in this subsection shall be construed to limit the
10-20    commission's general power to control the state's air quality under
10-21    Section 382.011(a).
10-22          SECTION 8.  Section 382.058, Health and Safety Code, is
10-23    amended to read as follows:
10-26    PLANTS.  (a)  A person may not begin construction on any concrete
 11-1    plant that performs wet batching, dry batching, or central mixing
 11-2    under a standard permit under Section 382.05181 or a permit by rule
 11-3    [an exemption] adopted by the commission under Section 382.05182
 11-4    [382.057] unless the person has complied with the notice and
 11-5    opportunity for hearing provisions under Section 382.056.
 11-6          (b)  This section does not apply to a concrete plant located
 11-7    temporarily in the right-of-way, or contiguous to the right-of-way,
 11-8    of a public works project.
 11-9          (c)  For purposes of this section, only those persons
11-10    actually residing in a permanent residence within 440 yards of the
11-11    proposed plant may request a hearing under Section 382.056(d) as a
11-12    person who may be affected.
11-13          SECTION 9.  Subsection (b), Section 382.062, Health and
11-14    Safety Code, is amended to read as follows:
11-15          (b)  The commission may adopt rules relating to charging and
11-16    collecting a fee for an exemption, for [from] a permit by rule, or
11-17    for a standard permit [authorized by commission rule] and for a
11-18    variance.
11-19          SECTION 10.  The Texas Natural Resource Conservation
11-20    Commission shall adopt, as soon as practicable after the effective
11-21    date of this Act, any rules necessary to implement the changes in
11-22    law made by this Act.
11-23          SECTION 11.  Not later than January 15, 2001, the Texas
11-24    Natural Resource Conservation Commission shall prepare and
11-25    distribute to the governor, the lieutenant governor, the speaker of
11-26    the house of representatives, the chairman of the Senate Committee
 12-1    on Natural Resources, and the chairman of the House Committee on
 12-2    Environmental Regulation a report on the number of companies that
 12-3    have obtained or applied for a permit under Section 382.0519,
 12-4    Health and Safety Code, as added by this Act, and the reductions in
 12-5    emissions anticipated to result from issuance of such permits.
 12-6          SECTION 12.  The importance of this legislation and the
 12-7    crowded condition of the calendars in both houses create an
 12-8    emergency and an imperative public necessity that the
 12-9    constitutional rule requiring bills to be read on three several
12-10    days in each house be suspended, and this rule is hereby suspended,
12-11    and that this Act take effect and be in force from and after its
12-12    passage, and it is so enacted.