Amend proposed CSHB 2912 by striking Sections 4.04-4.10 of
the bill (Committee Printing, page 21, line 52, through page 27,
line 43) and substituting the following sections, numbered
appropriately:
      SECTION _____.  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 an existing facility affected 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 under Section
382.05183;
            (8)  a small business stationary source permit under
Section 382.05184;
            (9)  an electric generating facility permit under
Section 382.05185 of this code and Section 39.264, Utilities Code;
            (10)  a pipeline facilities permit under Section
382.05186; or
            (11)  other permits as necessary.
      SECTION _____.  Subchapter C, Chapter 382, Health and Safety
Code, is amended by adding Sections 382.05181-382.05186 to read as
follows:
      Sec. 382.05181.  PERMIT REQUIRED. (a)  Any facility affected
by Section 382.0518(g) that does not have an application pending
for a permit 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
the East Texas region or the El Paso region; or
            (2)  September 1, 2004, if the facility is located in
the West Texas region.
      (b)  Any facility affected by Section 382.0518(g) that has
obtained a permit under this chapter, other than a permit under
Section 382.054, and has not fully complied with the conditions of
the permit pertaining to the installation of emissions controls or
reductions in emissions of air contaminants, may not emit air
contaminants on or after:
            (1)  March 1, 2007, if the facility is located in the
East Texas region or the El Paso region; or
            (2)  March 1, 2008, if the facility is located in the
West Texas region.
      (c)  The East Texas region:
            (1)  contains all counties traversed by or east of
Interstate Highway 35 north of San Antonio or traversed by or east
of Interstate Highway 37 south of San Antonio; and
            (2)  includes Bexar, Bosque, Coryell, Hood, Parker,
Somervell, and Wise counties.
      (d)  The El Paso region includes all of El Paso County.
      (e)  The West Texas region includes all counties not
contained in the East Texas region or the El Paso region.
      (f)  The commission promptly shall review each application
for a permit under this chapter for a facility affected by Section
382.0518(g).  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 and order the information to be
provided not later than the 60th day after the date the notice is
issued.  If the information is not provided to the commission on or
before that date, the commission shall dismiss the application.
      (g)  The commission shall take final action on an application
for a permit under this chapter for a facility affected by Section
382.0518(g) before the first anniversary of the date on which the
commission receives an administratively complete application.
      (h)  An owner or operator of a facility affected by Section
382.0518(g) that does not obtain a permit within the 12-month
period may petition the commission for an extension of the time
period for compliance specified by Subsection (b).  The commission
may grant not more than one extension for a facility, for an
additional period not to exceed 12 months, if the commission finds
good cause for the extension.
      (i)  A permit application under this chapter for a facility
affected by Section 382.0518(g) is subject to the notice and
hearing requirements as provided by Section 382.056.
      (j)  Chapter 2001, Government Code, does not apply to a
facility affected by Section 382.0518(g) that has received a permit
under this chapter, or has an application pending for a permit
under this chapter, the conditions of which require total emissions
reductions from that facility of at least 40 percent below 1997
levels as reported to the commission.
      (k)  This section does not apply to a facility eligible for a
permit under Section 382.05184.
      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
that will be eliminated when the facility ceases to operate; and
            (3)  any other necessary and relevant information the
commission by rule deems appropriate.
      Sec. 382.05183.  EXISTING FACILITY PERMIT. (a)  The owner or
operator of a facility affected 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, the
commission finds that the facility will use the more stringent of:
            (1)  a control method at least as beneficial as that
described by Section 382.003(9)(E)(ii), considering the age and the
remaining useful life of the facility; or
            (2)  a control technology that the commission finds is
demonstrated to be generally achievable for facilities in the same
area that are facilities of the same type and are permitted under
this section, considering the age and remaining useful life of the
facility.
      (c)  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.
      (d)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (e)  The commission may adopt rules as necessary to implement
and administer this section.
      Sec. 382.05184.  SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)
Facilities affected by Section 382.0518(g) that are located at a
small business stationary source, as defined by Section
382.0365(h), 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, 2004.
      (b)  Facilities affected by Section 382.0518(g) that are
located at a small business stationary source that does not have an
application pending for a permit 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 March 1, 2008.
      (c)  The commission shall grant a permit under this section
if, from the information available to the commission, the
commission 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.
      (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.
      Sec. 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 Section 39.264(d), Utilities Code.
      (b)  A coal-fired electric generating facility that is
required to obtain a permit under Section 39.264, Utilities Code:
            (1)  shall be considered permitted under this section
with respect to nitrogen oxides, sulphur 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)  is not considered permitted for air contaminants
not described by Subsection (b)(1).
      (c)  The commission shall issue a permit for a facility
subject to Subsection (b) for air contaminants not covered by
Subsection (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.
On the applicant's request, 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 not more than 10 percent of the normal
annual operating schedule; or
            (2)  an auxiliary fossil-fuel-fired combustion facility
that does not generate electric energy and is not a major
stationary source or major emitting facility as defined by Section
382.003(7)(F).
      (e)  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
may 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)  The commission shall adopt rules regarding acceptable
fuel oil grades for use in natural-gas-fired electric generating
facilities requiring that the amount and grade of fuel oil used may
not increase emissions above allowable limits.
      (j)  In this section, a natural-gas-fired electric generating
facility is an electric generating facility capable of burning
natural gas or a fuel oil of a grade approved by commission rule.
      Sec. 382.05186.  PIPELINE FACILITIES PERMITS. (a)  This
section applies only to reciprocating internal combustion engines
that are part of processing, treating, compression, or pumping
facilities affected by Section 382.0518(g) connected to or part of
a gathering or transmission pipeline.
      (b)  The commission by rule shall:
            (1)  provide for the issuance of a single permit for
all facilities connected to or part of a gathering or transmission
pipeline;
            (2)  provide for 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 gathering or transmission
pipeline; and
            (3)  allow an owner or operator to apply for separate
authorizations under this section for discreet and separate
facilities connected to or part of a gathering or transmission
pipeline.
      (c)  If the mandatory emissions reductions under this section
are to be achieved by averaging reductions among more than one
source connected to or part of a gathering or transmission
pipeline, the average may not include emissions reductions achieved
in order to comply with other state or federal law.
      (d)  If the mandatory emissions reductions under this section
are to be achieved at one source, the reduction may include
emissions reductions achieved in order to comply with other state
or federal law.
      (e)  The commission shall grant a permit under this section
if, from information available to the commission, the commission
finds that the conditions of the permit will require at least a 50
percent reduction of hourly emissions rates of nitrogen oxides,
expressed in terms of grams per brake horsepower-hour, if the
facility is located in the East Texas region or El Paso region
established by Section 382.05181.
      (f)  The commission may not grant a permit under this section
if, from information available to the commission, it finds that the
emissions from the facility will contravene the intent of this
chapter, including protection of the public's health and physical
property.
      (g)  A person planning the modification of a facility
previously permitted under this section must comply with Section
382.0518 before modifying.
      (h)  The commission may adopt rules as necessary to implement
and administer this section.
      SECTION _____.  Section 382.05191, Health and Safety Code, is
amended to read as follows:
      Sec. 382.05191.  <VOLUNTARY> EMISSIONS REDUCTION PERMITS
<PERMIT:>  NOTICE AND HEARING. (a)  An applicant for a permit under
Section 382.05183, 382.05185, 382.05186, 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 382.05183,
382.05185, 382.05186, 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 382.05183, 382.05185, or 382.05186 may move for rehearing
and is entitled to judicial review under Section 382.032.
      SECTION _____.  Section 382.05192, Health and Safety Code, is
amended to read as follows:
      Sec. 382.05192.  REVIEW AND RENEWAL OF <VOLUNTARY> EMISSIONS
REDUCTION AND MULTIPLE PLANT PERMITS. Review and renewal of a
permit issued under Section 382.05183, 382.05185, 382.05186,
382.0519, or 382.05194 shall be conducted in accordance with
Section 382.055.