By Chisum H.B. No. 3545
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the requirement of obtaining a permit for the emission
1-3 of air contaminants for certain facilities and the fees for which
1-4 such facilities are liable.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subsections (a) and (b), Section 382.051, Health
1-7 and Safety Code, are amended to read as follows:
1-8 (a) The commission may issue a permit:
1-9 (1) to construct a new facility or modify an existing
1-10 facility that may emit air contaminants;
1-11 (2) to operate a [an] facility described by Section
1-12 382.0518(g) [under a voluntary emissions reduction permit]; or
1-13 (3) to operate a federal source.
1-14 (b) To assist in fulfilling its authorization provided by
1-15 Subsection (a), the commission may issue:
1-16 (1) special permits for certain facilities;
1-17 (2) a general permit for numerous similar sources
1-18 subject to Section 382.054;
1-19 (3) a standard permit for similar facilities;
1-20 (4) a permit by rule for types of facilities that will
1-21 not significantly contribute air contaminants to the atmosphere;
1-22 (5) a single federal operating permit or
1-23 preconstruction permit for multiple federal sources or facilities
2-1 located at the same site;
2-2 (6) a multiple plant permit for existing facilities at
2-3 multiple locations subject to Section 382.0518 or 382.0519; [or]
2-4 (7) an existing facility permit under Section
2-5 382.05183;
2-6 (8) a small business stationary source permit under
2-7 382.05184;
2-8 (9) an electric generating facility permit under
2-9 Section 382.05185 and Section 39.264, Utilities Code;
2-10 (10) an authorization under Section 382.05186; or
2-11 (11) other permits as necessary.
2-12 SECTION 2. Subchapter C, Chapter 382, Health and Safety
2-13 Code, is amended by adding Sections 382.05181-Section 382.05186, to
2-14 read as follows:
2-15 Section 382.05181. PERMIT REQUIRED. (a) Any facility
2-16 described by Section 382.0518(g) that does not have an application
2-17 pending for a permit or other authorization under this Chapter,
2-18 other than a permit required under Section 382.054, and that has
2-19 not submitted a notice of shutdown under Section 382.05182, may not
2-20 emit air contaminants on or after:
2-21 (1) September 1, 2003 if the facility is located in an
2-22 area designated as nonattainment for a national ambient air quality
2-23 standard as of September 1, 2001; or
2-24 (2) September 1, 2005 if the facility is located in an
2-25 attainment area as of September 1, 2001.
2-26 (b) Any facility described by Section 382.0518(g) that does
3-1 not have a permit or other authorization under this Chapter, other
3-2 than a permit required under Section 382.054, may not emit air
3-3 contaminants on or after:
3-4 (1) September 1, 2005 if the facility is located in an
3-5 area designated as nonattainment for a national ambient air quality
3-6 standard as of September 1, 2001; or
3-7 (2) September 1, 2007 if the facility is located in an
3-8 attainment area as of September 1, 2001.
3-9 (c) Facilities eligible for a permit under Section 382.05184
3-10 are not subject to this section.
3-11 Sec. 382.05182. NOTICE OF SHUTDOWN. (a) Any notice
3-12 submitted in compliance with this section must be filed with the
3-13 commission by the dates in Section 382.05181(a).
3-14 (b) A notice under this section shall include:
3-15 (1) the date the facility intends to cease operating;
3-16 (2) an inventory of the type and amount of emissions
3-17 which will be eliminated when the facility ceases to operate; and
3-18 (3) any other necessary and relevant information the
3-19 commission by rule deems appropriate.
3-20 Sec. 382.05183. EXISTING FACILITY PERMIT. (a) The owner or
3-21 operator of a facility described by Section 382.0518(g) may apply
3-22 for a permit to operate the facility under this section.
3-23 (b) The commission shall grant a permit under this section
3-24 if, from the information available to the commission, including
3-25 information presented at any public hearing or through written
3-26 comment the commission finds that the application demonstrates
4-1 compliance with:
4-2 (1) Section 382.003(9)(e)(ii) if the permit
4-3 application is filed before September 1, 2002; or
4-4 (2) Section 382.0518(b) if the permit application is
4-5 filed:
4-6 (A) before September 1, 2003 if the facility is
4-7 located in an area designated as nonattainment for national ambient
4-8 air quality standards as of September 1, 2001; and
4-9 (B) before September 1, 2005 if the facility is
4-10 located in an area designated as nonattainment for national ambient
4-11 air quality standards as of September 1, 2001.
4-12 (c) If the commission finds that the emissions from the
4-13 facility will contravene the standards under Subsection (b) or the
4-14 intent of this chapter, including protection of the public's health
4-15 and physical property, the commission may not grant the permit
4-16 under this section.
4-17 (d) A person planning the modification of a facility
4-18 previously permitted under this section must comply with Section
4-19 382.0518 before modifying.
4-20 (e) The commission may adopt rules as necessary to implement
4-21 and administer this section.
4-22 (f) A permit application under this section is subject to
4-23 notice and hearing requirements a provided by Section 382.05191.
4-24 (g) If an applicant omits any relevant facts or submits
4-25 incorrect information in an application, the applicant shall submit
4-26 the relevant facts or correct the information no later than 60 days
5-1 after discovering the error. If while processing the application,
5-2 the commission determines that additional information is necessary
5-3 to evaluate or to take final action on the application, the
5-4 commission may request the information and set a reasonable
5-5 deadline for a response. Failure to comply with the deadline for
5-6 the response will result in the application being returned to the
5-7 applicant.
5-8 Sec. 382.05184. SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)
5-9 Facilities described by Section 382.0518(g) that are located at a
5-10 small business stationary source, as defined by Section
5-11 382.0365(h)(2), and are not required by commission rule to report
5-12 to the commission under Section 382.014 may apply for a permit
5-13 under this section before September 1, 2005.
5-14 (b) Facilities described by Section 382.0518(g) that are
5-15 located at a small business stationary source that does not have an
5-16 application pending for a permit or other authorization under this
5-17 chapter, other than a permit required under Section 382.054, and
5-18 that has not submitted a notice of shutdown under Section
5-19 382.05182, may not emit air contaminants on or after September 1,
5-20 2007.
5-21 (c) The commission shall grant a permit under this section
5-22 if, from information available to the commission finds that there
5-23 is no indication that the emissions from the facility will
5-24 contravene the intent of this chapter, including protection of the
5-25 public's health and physical property.
5-26 (d) If the commission finds that the emissions from the
6-1 facility will not comply with Subsection (c), the commission may
6-2 not grant the permit under this section.
6-3 (e) A person planning the modification of a facility
6-4 previously permitted under this section must comply with Section
6-5 382.0518 before modifying.
6-6 (f) The commission may adopt rules as necessary to implement
6-7 and administer this section.
6-8 (h) If an applicant omits any relevant facts or submits
6-9 incorrect information in an application, the applicant shall submit
6-10 the relevant facts or correct the information no later than 60 days
6-11 after discovering the error. If while processing the application,
6-12 the commission determines that additional information is necessary
6-13 to evaluate or to take final action on the application, the
6-14 commission may request the information and set a reasonable
6-15 deadline for a response. Failure to comply with the deadline for
6-16 the response will result in the application being returned to the
6-17 applicant.
6-18 Sec. 382.05185. ELECTRIC GENERATING FACILITY PERMIT. (a) An
6-19 electric generating facility is considered permitted under this
6-20 section with respect to all air contaminants if the facility is:
6-21 (1) a natural gas-fired electric generating facility
6-22 that has applied for or obtained a permit under Section 39.264,
6-23 Utilities Code; or
6-24 (2) an electric generating facility exempted from
6-25 permitting under Section 39.264(d), Utilities Code.
6-26 (b) Electric generating facilities, including coal-fired
7-1 electric generating facilities, that are required to obtain a
7-2 permit under Section 39.264, Utilities Code, and are not described
7-3 by Subsection (a):
7-4 (1) shall be considered permitted under this section
7-5 with respect to nitrogen oxides, sulfur dioxide and as provided by
7-6 commission rules for opacity if the facility has applied for or
7-7 obtained a permit under Section 39.264, Utilities Code; and
7-8 (2) are not considered permitted for criteria
7-9 pollutants not described by Subdivision (b)(1).
7-10 (c) The commission shall issue a permit for a facility
7-11 subject to Subsection (b) for criteria pollutants not covered by
7-12 Subdivision (b)(1) if the commission finds that the emissions from
7-13 the facility will not contravene the intent of this chapter,
7-14 including protection of the public's health and physical property.
7-15 Upon request by the applicant, the commission shall include a
7-16 permit application under this subsection with the applicant's
7-17 pending permit application under Section 39.264, Utilities Code.
7-18 (d) The owner or operator of an electric generating facility
7-19 with a permit or an application impending under Section 39.264,
7-20 Utilities Code, may apply for a permit under this section before
7-21 September 1, 2002 for a facility located at the same site if the
7-22 facility not permitted or without a pending application under
7-23 Section 39.264, Utilities Code is:
7-24 (1) a generator that does not generate electric energy
7-25 for compensation and is used no more than ten percent of the normal
7-26 annual operating schedule; or
8-1 (2) an auxiliary fossil-fuel-fired combustion facility
8-2 that does not generate electric energy for compensation.
8-3 (e) Nitrogen oxide emissions from facilities permitted under
8-4 Subsection (d) shall be included in the emission allowance trading
8-5 program established under Section 39.264, Utilities Code. The
8-6 commission shall not issue new allowances based on a permit issued
8-7 under this section.
8-8 (f) A person planning the modification of a facility
8-9 previously permitted under this section must comply with Section
8-10 382.0518 before modifying.
8-11 (g) The commission may adopt rules as necessary to implement
8-12 and administer this section.
8-13 (h) A permit application under this section is subject to
8-14 notice and hearing requirements as provided by Section 382.05191.
8-15 (i) For purposes of this section, a natural gas-fired
8-16 electric generating facility is one which is capable of burning
8-17 natural gas or a fuel oil of a grade approved by commission rule.
8-18 The commission shall adopt rules regarding acceptable fuel oil
8-19 grades which shall require that the amount and grade of fuel oil
8-20 used do not increase emissions above allowable limits.
8-21 Sec. 382.05186. AUTHORIZATION FOR PIPELINE FACILITIES. (a)
8-22 The commission by rule shall establish the procedures for
8-23 applications and registrations for existing natural gas processing,
8-24 treating, or compression facilities connected to or part of a
8-25 natural gas gathering or transmission pipeline described by Section
8-26 382.0518(g).
9-1 (b) Based on a prioritization by the commission as necessary
9-2 to meet local, regional and statewide air quality needs, the
9-3 commission may require up to a 20 percent reduction of annual
9-4 nitrogen oxide and volatile organic compound emissions from 1997
9-5 levels from facilities subject to this section. The commission may
9-6 by rule designate counties or regions of the state where greater
9-7 reductions of emissions will be required than in other areas, but
9-8 no more than 20 percent emissions reductions may be required in any
9-9 area.
9-10 (d) The commission shall:
9-11 (1) allow for a single permit for all facilities
9-12 connected to or part of a natural gas gathering or transmission
9-13 pipeline;
9-14 (2) allow for required emissions reductions for
9-15 facilities under this section to be achieved at one source or
9-16 averaged among more than one source connected to or part of a
9-17 natural gas gathering or transmission pipeline; and
9-18 (3) allow an owner or operator to apply for separate
9-19 authorizations under this section for discreet and separate
9-20 facilities connected to or part of a natural gas gathering or
9-21 transmission pipeline.
9-22 (e) Facilities authorized by this section shall be
9-23 considered permitted under this chapter.
9-24 (f) The commission shall issue a permit under this section
9-25 if the requirements of this section are met.
9-26 (g) A person planning the modification of a facility
10-1 previously permitted under this section must comply with Section
10-2 382.0518 before modifying.
10-3 (h) The commission may adopt rules as necessary to implement
10-4 and administer this section.
10-5 (i) A permit application under this section is subject to
10-6 notice and hearing requirements as provided by Section 382.05191.
10-7 (j) If an applicant omits any relevant facts or submits
10-8 incorrect information in an application, the applicant shall submit
10-9 the relevant facts or correct the information no later than 60 days
10-10 after discovering the error. If while processing the application,
10-11 the commission determines that additional information is necessary
10-12 to evaluate or to take final action on the application, the
10-13 commission may request the information and set a reasonable
10-14 deadline for a response. Failure to comply with the deadline for
10-15 the response will result in the application being returned to the
10-16 applicant.
10-17 SECTION 3. Amend Section 382.05191, Subchapter C, Health and
10-18 Safety Code, to read as follows:
10-19 Sec. 382.05191. [VOLUNTARY] EMISSIONS REDUCTION PERMITS
10-20 [PERMIT] NOTICE AND HEARING. (a) An applicant for a permit or
10-21 other authorization under Section 382.05183, Section 382.05185(c)
10-22 or (d), Section 382.05186, or Section 382.0519 shall publish notice
10-23 of intent to obtain the permit in accordance with Section 382.056.
10-24 (b) The commission may authorize an applicant for a permit
10-25 for a facility that constitutes or is part of a small business
10-26 stationary source as defined in Section 382.0365(g)(2) to provide
11-1 notice using an alternative means if the commission finds that the
11-2 proposed method will result in equal or better communication with
11-3 the public, considering the effectiveness of the notice in reaching
11-4 potentially affected persons, cost, and consistency with federal
11-5 requirements.
11-6 (c) The commission shall provide an opportunity for a public
11-7 hearing and the submission of public comment and send notice of a
11-8 decision on an application for a permit under Section 382.05183,
11-9 Section 382.05185 (c) or (d), Section 382.05186, or Section
11-10 382.0519 in the same manner as provided by Sections 382.0561 and
11-11 382.0562.
11-12 (d) A person affected by a decision of the commission to
11-13 issue or deny an [a voluntary] emissions reduction permit may move
11-14 for rehearing and is entitled to judicial review under Section
11-15 382.032.
11-16 SECTION 4. Section 382.05192, Health and Safety Code is
11-17 amended to read as follows:
11-18 Sec. 382.05192. REVIEW AND RENEWAL OF [VOLUNTARY] EMISSION
11-19 REDUCTION [AND MULTIPLE PLANT] PERMITS. Review and renewal of a
11-20 permit issued or other authorization granted under Section
11-21 382.05183, Section 382.05184, Section 382.05185 (c) or (d), Section
11-22 382.05186, or Section 382.0519 or Section 382.05194 shall be
11-23 conducted in accordance with Section 382.055.
11-24 SECTION 5. Amend Subsection (d), Section 382.0621, Health
11-25 and Safety Code, to read as follows:
11-26 (d) Except as provided by this subsection [section], the
12-1 commission may not impose a fee for any amount of emissions of an
12-2 air contaminant regulated under the federal Clean Air Act
12-3 Amendments of 1990 (Pub.L. No. 101-549) in excess of 4,000 tons per
12-4 year from any source. This fees under this subsection do not apply
12-5 to a facility with a permit or a permit application pending under
12-6 Section 382.05185(c). On and after September 1, 2001, for a
12-7 facility that is not subject to the requirement to obtain a permit
12-8 under Section 382.0518(g) that does not have a permit application
12-9 pending, the commission shall:
12-10 (1) impose a fee under this section for all emissions,
12-11 including emissions in excess of 4,000 tons; and
12-12 (2) [treble the amount of the fee imposed for
12-13 emissions in excess of 4,000 tons each fiscal year.] double the
12-14 amount of the fee imposed for all emissions of 4,000 tons or less
12-15 each fiscal year; and,
12-16 (3) treble the amount of the fee imposed for all
12-17 emissions in excess of 4,000 tons each fiscal year.
12-18 SECTION 6. This Act takes effect September 1, 2001.