Amend CSHB 2912 on page 66, between lines 3 and 4, by adding
the following sections, numbered appropriately:
      SECTION 4.__. Sections 382.051(a) and (b), Health and Safety
Code, are amended to read as follows:
      (a)  The commission may issue a permit:
            (1)  to construct a new facility or modify an existing
facility that may emit air contaminants;
            (2)  to operate a <an existing> facility for which a
person is not required to apply for a permit under Section 382.0518
because of the exemption under Section 382.0518(g) <under a
voluntary emissions reduction permit>; or
            (3)  to operate a federal source.
      (b)  To assist in fulfilling its authorization provided by
Subsection (a), the commission may issue:
            (1)  special permits for certain facilities;
            (2)  a general permit for numerous similar sources
subject to Section 382.054;
            (3)  a standard permit for similar facilities;
            (4)  a permit by rule for types of facilities that will
not significantly contribute air contaminants to the atmosphere;
            (5)  a single federal operating permit or
preconstruction permit for multiple federal sources or facilities
located at the same site;
            (6)  a multiple plant permit for existing facilities at
multiple locations subject to Section 382.0518 or 382.0519; <or>
            (7)  a small business stationary source permit under
Section 382.05185;
            (8)  an electric generating facility permit under
Section 39.264, Utilities Code, and Section 382.05186;
            (9)  a pipeline facilities permit under Section
382.05187; or
            (10)  other permits as necessary.
      SECTION 4.__. Subchapter C, Chapter 382, Health and Safety
Code, is amended by adding Sections 382.05181-382.05187 to read as
follows:
      Sec. 382.05181.  PERMIT REQUIRED. (a)  This section:
            (1)  applies only to a facility for which a person is
not required to apply for a permit under Section 382.0518 because
of the exemption under Section 382.0518(g); and
            (2)  does not apply to a facility that is eligible for
a permit under Section 382.05185 or 382.05186.
      (b)  Except as provided by Subsections (c) and (d), a
facility that has not obtained a permit under this subchapter other
than a permit under Section 382.054 may not emit air contaminants
on or after:
            (1)  September 1, 2002, if the facility is located in
the East Texas or El Paso region established by Section 382.05182;
or
            (2)  September 1, 2003, if the facility is located in
the West Texas region established by Section 382.05182.
      (c)  A facility is not subject to Subsection (b)  if the
owner or operator of the facility:
            (1)  has filed a notice of shutdown for the facility
under Section 382.05184; or
            (2)  has pending before the commission an application
for a permit under this subchapter for the facility, other than a
permit under Section 382.054.
      (d)  A facility that is permitted under this subchapter may
not emit air contaminants on or after the following date unless the
facility is in full compliance with the conditions of the permit,
including a permit requirement to install emissions controls or to
reduce emissions of air contaminants:
            (1)  September 1, 2005, for a facility located in the
East Texas region or the El Paso region established by Section
382.05182; or
            (2)  September 1, 2006, for a facility located in the
West Texas region established by Section 382.05182.
      (e)  An application for a permit under this subchapter for a
facility is subject to the notice and hearing requirements provided
by Section 382.056.  The commission shall review promptly each
application for a permit under this subchapter, other than a permit
under Section 382.054, that is submitted for a facility to which
this section applies.  If the commission finds that necessary
information is omitted from the application, that the application
contains incorrect information, or that more information is
necessary to complete the processing of the application, the
commission shall issue a notice of deficiency to the applicant  and
order the applicant to provide the information not later than the
60th day after the date the notice of deficiency is issued.  If the
applicant does not provide the commission the information on or
before that date, the commission shall dismiss the application.
      (f)  The commission shall take final action on an application
for a permit under this subchapter for a facility to which this
subchapter applies not later than the first anniversary of the date
on which the commission receives an administratively complete
application.  A person affected by a failure of the commission to
take final action by the date provided by this section may obtain
judicial review under Section 382.032 at any time before the
commission takes final action.  A reviewing court may order the
commission to act on the application without delay only if the
court finds that the commission's failure to take the final action
is arbitrary or unreasonable.
      Sec. 382.05182.  EAST TEXAS, WEST TEXAS, AND EL PASO REGIONS.
For purposes of this subchapter:
            (1)  the East Texas region consists of Bexar, Bosque,
Coryell, Hood, Parker, Somervell, and Wise counties, each county
traversed by or east of Interstate Highway 35 north of San Antonio,
and each county traversed by or east of Interstate Highway 37 south
of San Antonio;
            (2)  the El Paso region consists of El Paso County; and
            (3)  the West Texas region consists of all areas of
this state not contained in the East Texas or El Paso regions.
      Sec. 382.05183.  PERMITTING AND PERMIT AMENDMENT PROCEDURES
FOR CERTAIN PERMITS FOR CERTAIN EXEMPT FACILITIES. (a)  Chapter
2001, Government Code, does not apply to an application for a
permit or permit amendment under this subchapter for a facility for
which a person is not required to apply for a permit under Section
382.0518 because of the exemption under Section 382.0518(g) if the
commission determines that the draft permit, or the draft permit
amendment together with the permit, if issued, would result in a
reduction in the total emissions of air contaminants from the
facility to a level that is 40 percent or more below 1997 emissions
levels as reported to the commission.
      (b)  This section does not apply to a facility eligible for a
permit under Section 382.05185 or 382.05186.
      Sec. 382.05184.  NOTICE OF SHUTDOWN. (a)  The owner or
operator of a facility may file a notice of shutdown only before:
            (1)  September 1, 2002, if the facility is located in
the East Texas or El Paso region established by Section 382.05182;
or
            (2)  September 1, 2003, if the facility is located in
the West Texas region established by Section 382.05182.
      (b)  A notice of shutdown must include:
            (1)  the date by which the facility will cease
operations;
            (2)  an inventory of the type and amount of emissions
that will be eliminated when the facility ceases operations; and
            (3)  any other information the commission by rule
establishes as necessary and relevant.
      Sec. 382.05185.  SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)
This section applies only to a facility for which a person is not
required to apply for a permit under Section 382.0518 because of
the exemption under Section 382.0518(g) that is located at a small
business stationary source, as defined by Section 382.0365(h).
      (b)  A facility that is not required by commission rules to
report to the commission under Section 382.014 may apply for a
permit under this section before September 1, 2003.
      (c)  A facility may not emit air contaminants on or after
September 1, 2006, unless the owner or operator of the facility:
            (1)  has filed a notice of shutdown for the facility
under Section 382.05184;
            (2)  has obtained a permit under this subchapter, other
than a permit under Section 382.054; or
            (3)  has pending before the commission an application
for a permit under this subchapter for the facility, other than a
permit under Section 382.054.
      (d)  The commission shall grant a permit for a facility under
this section if, from information available to the commission, it
finds no indication that the emissions from the facility will
contravene the intent of this chapter, including protection of the
public's health and physical property.  If the commission finds
that the emissions from the proposed facility will contravene the
intent of this chapter, the commission may not grant the permit
under this section.
      (e)  A person must obtain a permit under Section 382.0518
before modifying a facility permitted under this section.
      Sec. 382.05186.  ELECTRIC GENERATING FACILITY PERMIT. (a) An
electric generating facility is considered permitted under this
section with respect to all air contaminants if the facility is:
            (1)  a natural gas fired electric generating facility
for which a permit under Section 39.264, Utilities Code, has been
obtained or for which an application for a permit under that
section is pending before the commission; or
            (2)  an electric generating facility excluded from
permit requirements of Section 39.264, Utilities Code, under
Subsection (d) of that section.
      (b)  An electric generating facility, including a coal-fired
facility, that is required to obtain and has obtained a permit
under Section 39.264, Utilities Code, and that is not described by
Subsection (a)  of this section is considered permitted under this
section for:
            (1)  emissions of nitrogen oxides;
            (2)  emissions of sulphur dioxide; and
            (3)  as provided by commission rules, opacity.
      (c)  An electric generating facility described by Subsection
(b) is not considered permitted under this section for air
contaminants other than those specified by Subsection (b).  The
commission may issue a permit under this section for a facility's
emissions of other air contaminants if the commission finds from
information available to the commission that the emissions will not
contravene the intent of this chapter, including protection of the
public's health and physical property.  On the request of a person
for whom an application for a permit under Section 39.264,
Utilities Code, is pending before the commission, the commission
shall include in that application process the person's application
for a permit under this subsection.
      (d)  Before September 1, 2002, the owner or operator of an
electric generating facility permitted under Section 39.264,
Utilities Code, or for which an application for a permit under that
section is pending before the commission, may apply for a permit
under this section for another facility located at the same site if
the other facility does not generate electricity for compensation
and is:
            (1)  a generator that is used for 10 percent or less of
the normal annual operating schedule; or
            (2)  an auxiliary fossil fuel fired combustion facility
that is not a major stationary source or major emitting facility
under Section 302 of the federal Clean Air Act (42 U.S.C. Section
7602).
      (e)  The commission by rule shall provide for emissions from
facilities permitted under Subsection (d) to be included in the
emissions allowance trading program established under Section
39.264, Utilities Code.  The commission may not issue a new
allowance under the program based on a permit issued under this
section.
      (f)  A permit application under Subsection (c) or (d) is
subject to the notice and hearing requirements provided by Section
382.05191.
      (g)  A person must obtain a permit under Section 382.0518
before modifying a facility permitted under this section.
      (h)  For the purposes of Subsection (a)(1), a natural gas
fired electric generating facility includes a facility capable of
burning natural gas or a fuel oil of a grade allowed by commission
rule.  The commission shall adopt rules regarding allowed grades of
fuel oil for purposes of this section.  The rules must provide that
the amount and grade of fuel oil used may not increase emissions
from the facility above allowable limits.
      Sec. 382.05187.  AUTHORIZATION FOR PIPELINE FACILITIES. (a)
This section applies only to natural gas processing, treating, or
compression facilities in existence on the effective date of this
section that are connected to or part of a natural gas gathering or
transmission pipeline for which a person is not required to apply
for a permit under Section 382.0518 because of the exemption under
Section 382.0518(g).
      (b)  The commission by rule shall provide for:
            (1)  the issuance of a single permit for all facilities
connected to or part of a natural gas gathering or transmission
pipeline;
            (2)  a means for mandatory emissions reductions for
facilities permitted under this section to be achieved:
                  (A)  at one source; or
                  (B)  by averaging reductions among more than one
source connected to or part of a natural gas gathering or
transmission pipeline; and
            (3)  an owner or operator of a facility to apply for
separate authorizations under this section for discrete and
separate facilities connected to or part of a natural gas gathering
or transmission pipeline.
      (c)  The commission shall issue a permit under this section
to an owner or operator of a facility or facilities if, from
information available to the commission, the commission finds that:
            (1)  the facility will use a pollution control
technology at least as beneficial as the best available control
technology, considering the technical practicability and economic
reasonableness of reducing or eliminating the emissions resulting
from the facility; or
            (2)  aggregate emissions of air contaminants averaged
among the several facilities will not exceed the emissions that
would be authorized if the facilities used the best available
control technology, considering the technical practicability and
economic reasonableness of reducing or eliminating the emissions
resulting from the facilities.
      (d)  A person must obtain a permit under Section 382.0518
before modifying a facility permitted under this section.
      SECTION 4.__. Sections 382.05191 and 382.05192, Health and
Safety Code, are amended to read as follows:
      Sec. 382.05191.  <VOLUNTARY> EMISSIONS REDUCTION PERMIT<:>
NOTICE AND HEARING. (a)  An applicant for a permit under Section
382.05186, 382.05187, or 382.0519 shall publish notice of intent to
obtain the permit in accordance with Section 382.056.
      (b)  The commission may 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(h)
<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.
      (c)  The commission shall provide an opportunity for a public
hearing and the submission of public comment and send notice of a
decision on an application for a permit under Section 382.05186,
382.05187, or 382.0519 in the same manner as provided by Sections
382.0561 and 382.0562.
      (d)  A person affected by a decision of the commission to
issue or deny a <voluntary emissions reduction> permit under
Section 382.05186, 382.05187, or 382.0519 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. Review and renewal of a
permit issued under Section 382.05186, 382.05187, 382.0519, or
382.05194 shall be conducted in accordance with Section 382.055.
      SECTION 4.__. Section 382.0621(d), Health and Safety Code, is
amended to read as follows:
      (d)  Except as provided by this subsection <section>, the
commission may not impose a fee for any amount of emissions of an
air contaminant regulated under the federal Clean Air Act
Amendments of 1990 (Pub.L. No. 101-549) in excess of 4,000 tons per
year from any source.  The commission shall impose a fee on the
aggregate emissions from all stationary sources located on one or
more contiguous or adjacent properties that are under common
control of the same person or of persons under common control. The
fee must apply only to a facility or group of facilities for which
a person is not required to apply for a permit under Section
382.0518 because of the exemption <On and after September 1, 2001,
for a facility that is not subject to the requirement to obtain a
permit> under Section 382.0518(g), for which a permit under this
subchapter, other than a permit under Section 382.054, has not been
issued, for which an application for a permit under this
subchapter, other than a permit under Section 382.054, is not
pending before the commission, and for which a notice of shutdown
has not been filed under Section 382.05184.  For aggregate
emissions from those facilities <that does not have a permit
application pending>, the commission shall:
            (1)  impose a fee under this section for all emissions,
including emissions in excess of 4,000 tons; and
            (2)  treble the amount of the fee imposed for emissions
in excess of 4,000 tons each fiscal year.