By Bernsen                                             S.B. No. 493
         77R909 JJT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the repeal of the exemption for certain sources of air
 1-3     contaminant emissions from preconstruction permit requirements.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 382.0518(g) and (h), Health and Safety
 1-6     Code, are amended to read as follows:
 1-7           (g)  [Subsections (a)-(d) do not apply to a person who has
 1-8     executed a contract or has begun construction for an addition,
 1-9     alteration, or modification to a new or an existing facility on or
1-10     before August 30, 1971, and who has complied with the requirements
1-11     of Section 382.060, as it existed on November 30, 1991.  To qualify
1-12     for any exemption under this subsection, a contract may not have a
1-13     beginning construction date later than February 29, 1972.]
1-14           [(h)]  A reference to a permit in this section includes an
1-15     amendment to a permit.
1-16           SECTION 2. Sections 382.0519(a), (b), and (f), Health and
1-17     Safety Code, are amended to read as follows:
1-18           (a)  The commission may grant a permit under this section
1-19     only if the permit application was filed before [Before] September
1-20     1, 2001[, the owner or operator of an existing, unpermitted
1-21     facility not subject to the requirement to obtain a permit under
1-22     Section 382.0518(g) may apply for a permit to operate that facility
1-23     under this section].
1-24           (b)  The commission shall grant a permit to operate a
 2-1     facility under this section within a reasonable time after the
 2-2     commission receives a permit application [a permit under this
 2-3     section] if, from the information available to the commission,
 2-4     including information presented at any public hearing or through
 2-5     written comment:
 2-6                 (1)  the commission finds that the facility will use an
 2-7     air pollution control method at least as beneficial as that
 2-8     described in Section 382.003(9)(E)(ii), considering the age and
 2-9     remaining useful life of the facility, except as provided by
2-10     Subdivision (2); or
2-11                 (2)  for a facility located in a near-nonattainment or
2-12     nonattainment area for a national ambient air quality standard, the
2-13     commission finds that the facility will use the more stringent of:
2-14                       (A)  a control method at least as beneficial as
2-15     that described in Section 382.003(9)(E)(ii), considering the age
2-16     and remaining useful life of the facility; or
2-17                       (B)  a control technology that the commission
2-18     finds is demonstrated to be generally achievable for facilities in
2-19     that area of the same type that are permitted under this section,
2-20     considering the age and remaining useful life of the facility.
2-21           (f)  The commission shall give priority to the processing of
2-22     applications for the issuance, amendment, or renewal of a permit
2-23     for those facilities [authorized under Section 382.0518(g)] that
2-24     are located less than two miles from the outer perimeter of a
2-25     school, child day-care facility, hospital, or nursing home.
2-26           SECTION 3. Section 382.05194(a), Health and Safety Code, is
2-27     amended to read as follows:
 3-1           (a)  The commission may issue a multiple plant permit for
 3-2     multiple plant sites that are owned or operated by the same person
 3-3     or persons under common control if the commission finds that:
 3-4                 (1)  the aggregate rate of emission of air contaminants
 3-5     to be authorized under the permit does not exceed the total of:
 3-6                       (A)  for previously permitted facilities, the
 3-7     rates authorized in the existing permits; and
 3-8                       (B)  for [existing unpermitted facilities not
 3-9     subject to the requirement to obtain a preconstruction
3-10     authorization under Section 382.0518(g) or for] facilities
3-11     authorized under Section 382.0519, the rates that would be
3-12     authorized under Section 382.0519; and
3-13                 (2)  there is no indication that the emissions from the
3-14     facilities will contravene the intent of this chapter, including
3-15     protection of the public's health and physical property.
3-16           SECTION 4. Section 382.05195(a), Health and Safety Code, is
3-17     amended to read as follows:
3-18           (a)  The commission may issue a standard permit for new or
3-19     existing similar facilities if the commission finds that:
3-20                 (1)  the standard permit is enforceable;
3-21                 (2)  the commission can adequately monitor compliance
3-22     with the terms of the standard permit; and
3-23                 (3)  the [for permit applications for facilities
3-24     subject to Sections 382.0518(a)-(d) filed before September 1, 2001,
3-25     the facilities will use control technology at least as effective as
3-26     that described in Section 382.0518(b).  For permit applications
3-27     filed after August 31, 2001, all] facilities permitted under this
 4-1     section will use control technology at least as effective as that
 4-2     described in Section 382.0518(b).
 4-3           SECTION 5. Section 382.0621(d), Health and Safety Code, is
 4-4     amended to read as follows:
 4-5           (d)  The [Except as provided by this section, the] commission
 4-6     may not impose a fee for any amount of emissions of an air
 4-7     contaminant regulated under the federal Clean Air Act Amendments of
 4-8     1990 (Pub.L. No. 101-549) in excess of 4,000 tons per year from any
 4-9     source. [On and after September 1, 2001, for a facility that is not
4-10     subject to the requirement to obtain a permit under Section
4-11     382.0518(g) that does not have a permit application pending, the
4-12     commission shall:]
4-13                 [(1)  impose a fee under this section for all
4-14     emissions, including emissions in excess of 4,000 tons; and]
4-15                 [(2)  treble the amount of the fee imposed for
4-16     emissions in excess of 4,000 tons each fiscal year.]
4-17           SECTION 6. Sections 39.264(b), (d), and (e), Utilities Code,
4-18     are amended to read as follows:
4-19           (b)  This section applies only to an electric generating
4-20     facility existing on January 1, 1999, that on August 31, 2001, was
4-21     [is] not subject to the requirement to obtain a permit under
4-22     Sections 382.0518(a)-(d) [Section 382.0518(g)], Health and Safety
4-23     Code, because the facility was exempt under Section 382.0518(g), as
4-24     that subsection read on that date.
4-25           (d)  A municipal corporation, electric cooperative, or river
4-26     authority may exclude any electric generating facilities of 25
4-27     megawatts or less from the requirements prescribed by this section
 5-1     only if the[.  Not later than January 1, 2000, a] municipal
 5-2     corporation, electric cooperative, or river authority informed
 5-3     [must inform] the conservation commission of its intent to exclude
 5-4     those facilities before January 2, 2000.
 5-5           (e)  The conservation commission may issue a permit for
 5-6     [owner or operator of] an electric generating facility under this
 5-7     section only if the owner or operator of the facility applied
 5-8     [shall apply] to the conservation commission for a permit [for the
 5-9     emission of air contaminants] on or before September 1, 2000. A
5-10     permit issued by the conservation commission under this section
5-11     shall require the facility to achieve emissions reductions or
5-12     trading emissions allowances as provided by this section.  If the
5-13     facility uses coal as a fuel, the permit must also be conditioned
5-14     on the facility's emissions meeting opacity limitations provided by
5-15     conservation commission rules.  A [Notwithstanding Section
5-16     382.0518(g), Health and Safety Code, a] facility that does not
5-17     obtain a permit as required by this subsection may not operate
5-18     after May 1, 2003[, unless the conservation commission finds good
5-19     cause for an extension].
5-20           SECTION 7. The changes in law made by Section 4 of this Act
5-21     do not apply to an application for a permit filed under Section
5-22     382.05195, Health and Safety Code, before September 1, 2001.  Such
5-23     an application shall be considered and granted or denied under the
5-24     law as it existed on August 31, 2001, and the former law is
5-25     continued in effect for that purpose.  An operating facility for
5-26     which such an application is filed may continue to operate as
5-27     authorized by the former law until the permit is granted or denied,
 6-1     and the owner or operator of the facility may not be penalized for
 6-2     air contaminant emissions authorized by the former law before the
 6-3     permit is granted or denied.
 6-4           SECTION 8. This Act takes effect September 1, 2001.