Substitute the following for the Amendment by Chisum to the
Amendment on page 72 (amendments packet) to CSHB 2912:
      Amend the Amendment to CSHB 2912 on page 72 of the amendment
packet to CSHB 2912 by deleting lines 3-29, page 1 and by deleting
pages 2-10 and inserting the following:
      SECTION 1. Subsections (a) and (b), Section 382.051, 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> facility described by 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)  an existing facility permit or existing facility
flexible permit under Section 382.05183;
            (8)  a small business stationary source permit under
382.05184;
            (9)  an electric generating facility permit under
Section 382.05185 and Section 39.264, Utilities Code;
            (10)  an authorization under Section 382.05186; or
            (11)  other permits as necessary.
      SECTION 2. Subchapter C, Chapter 382, Health and Safety Code,
is amended by adding Sections 382.05181-Section 382.05186, to read
as follows:
      Section 382.05181.  PERMIT REQUIRED. (a)  Any facility
described by Section 382.0518(g) that does not have an application
pending for a permit or other authorization under this Chapter,
other than a permit required under Section 382.054, and that has
not submitted a notice of shutdown under Section 382.05182, may not
emit air contaminants on or after:
            (1)  September 1, 2003 if the facility is located in an
area designated as nonattainment for a national ambient air quality
standard as of September 1, 2001; or
            (2)  September 1, 2005 if the facility is located in an
area other than a nonattainment area as of September 1, 2001.
      (b)  Any facility described by Section 382.0518(g) that does
not have a permit or other authorization under this Chapter, other
than a permit required under Section 382.054, may not emit air
contaminants on or after:
            (1)  September 1, 2005 if the facility is located in an
area designated as nonattainment for a national ambient air quality
standard as of September 1, 2001; or
            (2)  September 1, 2007 if the facility is located in an
area other than a nonattainment area as of September 1, 2001.
      (c)  Facilities eligible for a permit under Section 382.05184
are not subject to this section.
      Sec. 382.05182.  NOTICE OF SHUTDOWN. (a)  Any notice
submitted in compliance with this section must be filed with the
commission by the dates in Section 382.05181(a).
      (b)  A notice under this section shall include:
            (1)  the date the facility intends to cease operating;
            (2)  an inventory of the type and amount of emissions
which will be eliminated when the facility ceases to operate; and
            (3)  any other necessary and relevant information the
commission by rule deems appropriate.
      SECTION 382.05183.  EXISTING FACILITY PERMIT. (a)  The owner
or operator of a facility described by Section 382.0518(g) may
apply for a permit to operate the facility under this section.
      (b)  The commission shall grant 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 application demonstrates
compliance with:
            (1)  Section 382.003(9)(e)(ii) if the permit
application is filed before September 1, 2002; or
            (2)  Section 382.0518(b) if the permit application is
filed:
                  (A)  before September 1, 2003 if the facility is
located in an area designated as nonattainment for national ambient
air quality standards as of September 1, 2001; and
                  (B)  before September 1, 2005 if the facility is
located in an area other than a nonattainment area as of September
1, 2001.
      (c)  The commission may issue an existing facility flexible
permit for some or all of the facilities at a site described by
Section 382.0518(g) and facilities permitted under Section 382.0519
in order to implement the requirements of this section.  Permits
issued under this subsection shall follow the same permit issuance,
modification and renewal procedures as existing facility permits.
      (d)  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, the commission may not grant the permit
under this section.
      (e)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (f)  The commission may adopt rules as necessary to implement
and administer this section.
      (g)  A permit application under this section is subject to
notice and hearing requirements as provided by Section 382.05191.
      (h)  If an applicant omits any relevant facts or submits
incorrect information in an application, the applicant shall submit
the relevant facts or correct the information no later than 60 days
after discovering the error.  If while processing the application,
the commission determines that additional information is necessary
to evaluate or to take final action on the application, the
commission may request the information and set a reasonable
deadline for a response.  Failure to comply with the deadline for
the response will result in the application being returned to the
applicant.
      SECTION 382.05184.  SMALL BUSINESS STATIONARY SOURCE PERMIT.
(a)  Facilities described by Section 382.0518(g) that are located
at a small business stationary source, as defined by Section
382.0365(h)(2), and are not required by commission rule to report
to the commission under Section 382.014 may apply for a permit
under this section before September 1, 2005.
      (b)  Facilities described by Section 382.0518(g) that are
located at a small business stationary source that does not have an
application pending for a permit or other authorization under this
chapter, other than a permit required under Section 382.054, and
that has not submitted a notice of shutdown under Section
382.05182, may not emit air contaminants on or after September 1,
2007.
      (c)  The commission shall grant 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 there is 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.
      (d)  If the commission finds that the emissions from the
facility will not comply with Subsection (c), the commission may
not grant the permit under this section.
      (e)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (f)  The commission may adopt rules as necessary to implement
and administer this section.
      (h)  If an applicant omits any relevant facts or submits
incorrect information in an application, the applicant shall submit
the relevant facts or correct the information no later than 60 days
after discovering the error.  If while processing the application,
the commission determines that additional information is necessary
to evaluate or to take final action on the application, the
commission may request the information and set a reasonable
deadline for a response.  Failure to comply with the deadline for
the response will result in the application being returned to the
applicant.
      SECTION 382.05185.  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
that has applied for or obtained a permit under Section 39.264,
Utilities Code; or
            (2)  an electric generating facility exempted from
permitting under 39.264(d), Utilities Code.
      (b)  Electric generating facilities, including coal-fired
electric generating facilities, that are required to obtain a
permit under Section 39.264, Utilities Code, and are not described
by Subsection (a):
            (1)  shall be considered permitted under this section
with respect to nitrogen oxides, sulfur dioxide and as provided by
commission rules for opacity if the facility has applied for or
obtained a permit under Section 39.264, Utilities Code; and
            (2)  are not considered permitted for criteria
pollutants not described by Subdivision (b)(1).
      (c)  The commission shall issue a permit for a facility
subject to Subsection (b) for criteria pollutants not covered by
Subdivision (b)(1) if the commission finds that the emissions from
the facility will not contravene the intent of this chapter,
including protection of the public's health and physical property.
Upon request by the applicant, the commission shall include a
permit application under this subsection with the applicant's
pending permit application under Section 39.264, Utilities Code.
      (d)  The owner or operator of an electric generating facility
with a permit or an application pending under Section 39.264,
Utilities Code, may apply for a permit under this section before
September 1, 2002 for a facility located at the same site if the
facility not permitted or without a pending application under
Section 39.264, Utilities Code is:
            (1)  a generator that does not generate electric energy
for compensation and is used no more than ten percent of the normal
annual operating schedule; or
            (2)  an auxiliary fossil-fuel-fired combustion facility
that does not generate electric energy for compensation.
      (e)  Nitrogen oxide emissions from facilities permitted under
Subsection (d) shall be included in the emission allowance trading
program established under Section 39.264, Utilities Code.  The
commission shall not issue new allowances based on a permit issued
under this section.
      (f)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (g)  The commission may adopt rules as necessary to implement
and administer this section.
      (h)  A permit application under this section is subject to
notice and hearing requirements as provided by Section 382.05191.
      (i)  For purposes of this section, a natural gas-fired
electric generating facility is one which is capable of burning
natural gas or a fuel oil of a grade approved by commission rule.
The commission shall adopt rules regarding acceptable fuel oil
grades which shall require that the amount and grade of fuel oil
used to not increase emissions above allowable limits.
      Section 382.05186.  AUTHORIZATION FOR PIPELINE FACILITIES.
(a)  The commission by rule shall establish the procedures for
applications for existing processing, treating, compression or
pumping facilities described by Section 382.0518(g) connected to or
part of a gathering or transmission pipeline.
      (b)  Based on a prioritization by the commission as necessary
to meet local, regional and statewide air quality needs related
directly or indirectly to federal air quality standards, the
commission may require up to a 50 percent reduction of the hourly
emission rate, in terms of grams per brake horsepower-hour, of
nitrogen oxide and may also require up to a 50 percent reduction of
the hourly emission rate, in terms of grams per brake
horsepower-hour, of volatile organic compounds from reciprocating
internal combustion engines subject to this section.  The
commission may consider requiring up to a 50 percent reduction of
the hourly emission rate of nitrogen oxide and may also consider
requiring up to a 50 percent reduction of the hourly emission rate
of volatile organic compounds from facilities other than
reciprocating internal combustion engines that are connected to or
part of a gathering or transmission pipeline.  The commission may
by rule designate counties or regions of the state where greater
reductions of emissions will be required than in other areas, but
no more than 50 percent emissions reductions may be required in any
area.
      (c)  The commission shall:
            (1)  allow for a single permit for all facilities
connected to or part of a gas gathering or transmission pipeline;
            (2)  allow for required reductions for facilities under
this section to be achieved at one facility or averaged among more
than one facility and located in the same local, regional or
statewide areas designated by the commission under subsection (b);
            (3)  for purposes of emission averaging, allow emission
reductions achieved from facilities defined by Section 382.0518(g)
since September 1, 1997; and
            (4)  allow an owner or operator to apply for separate
permits under this section for discreet and separate facilities
connected to or part of a gathering or transmission pipeline.
      (d)  Facilities authorized by this section shall be
considered permitted under this chapter.
      (e)  The commission shall issue a permit under this section
if the requirements of this section are met.
      (f)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (g)  The commission may adopt rules as necessary to implement
and administer this section.
      (h)  A permit application under this section is subject to
notice and hearing requirements as provided by Section 382.05191.
      (i)  If an applicant omits any relevant facts or submits
incorrect information in an application, the applicant shall submit
the relevant facts or correct the information no later than 60 days
after discovering the error.  If while processing the application,
the commission determines that additional information is necessary
to evaluate or to take final action on the application, the
commission may request the information and set a reasonable
deadline for a response.  Failure to comply with the deadline for
the response will result in the application being returned to the
applicant.
      SECTION 3. Amend Section 382.05191, Subchapter C, Health and
Safety Code, to read as follows:
      SECTION 382.05191.  <VOLUNTARY> EMISSIONS REDUCTION PERMITS
<PERMIT> NOTICE AND HEARING. (a)  An applicant for a permit or
other authorization under Section 382.05183, Section 382.05185(c)
or (d), Section 382.05186, or Section 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(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 382.05183,
Section 382.05185 (c) or (d), Section 382.05186, or Section
382.0519in 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 denyan <a voluntary> emissions reduction permit may move
for rehearing and is entitled to judicial review under Section
382.032.
      SECTION 4:  Section 382.05192, Health and Safety Code is
amended to read as follows:
      SECTION 382.05192.  REVIEW AND RENEWAL OF <VOLUNTARY>
EMISSION REDUCTION <AND MULTIPLE PLANT> PERMITS. Review and renewal
of a permit issued or other authorization granted under Section
382.05183, Section 382.05184, Section 382.05185 (c) or (d), Section
382.05186, or Section 382.0519 or Section 382.05194 shall be
conducted in accordance with Section 382.055.
      SECTION 5. Amend Subsection (d), Section 382.0621, Health and
Safety Code, 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 fees under this subsection do not apply
to a facility with a permit or a permit application pending under
Section 382.05185(c).  The fees under this subsection do not apply
to a facility for which a letter expressing intent to authorize
that facility is filed on or before September 1, 2002 or a permit
application is timely filed.  In the event that a letter of intent
is not filed, or if a letter of intent is filed but a permit
application is not subsequently timely filed, the fees due and
owing for such facility shall be deemed to have accrued since
September 1, 2001 in the amounts set forth in this subsection.  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) 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.>  double the
amount of the fee imposed for all emissions of 4,000 tons or less
each fiscal year; and,
            (3)  treble the amount of the fee imposed for all
emissions in excess of 4,000 tons each fiscal year.