By:  Bonnen                                                       H.B. No. 1900


A BILL TO BE ENTITLED
AN ACT
relating to the assessment and regulation of emissions events. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 382.0215, Health and Safety Code, is amended by amending Subsections (a), (b), and (f) and adding Subsections (a-1) and (h) to read as follows: (a) In this section: (1) "Emissions [, "emissions] event" means an upset event, or unscheduled maintenance, startup, or shutdown activity, from a common cause that results in the unauthorized emissions of air contaminants from one or more [an] emissions points at a regulated entity [point]. (2) "Regulated entity" means all regulated units, facilities, equipment, structures, or sources at one street address or location that are owned or operated by the same person. The term includes any property under common ownership or control identified in a permit or used in conjunction with the regulated activity at the same street address or location. (a-1) Maintenance, startup, and shutdown activities shall not be considered unscheduled only if the activity will not and does not result in the emission of at least a reportable quantity of unauthorized emissions of air contaminants and the activity is recorded as may be required by commission rule, or if the activity will result in the emission of at least a reportable quantity of unauthorized emissions and: (1) the owner or operator of the regulated entity [facility] provides any prior notice or final report that the commission, by rule, may establish; (2) the notice or final report includes the information required in Subsection (b)(3); and (3) the actual emissions do not exceed the estimates submitted in the notice by more than a reportable quantity. (b) The commission shall require the owner or operator of a regulated entity [facility] that experiences emissions events: (1) to maintain a record of all emissions events at the regulated entity [facility] in the manner and for the periods prescribed by commission rule; (2) to notify the commission in a single report for each emissions event, as soon as practicable but not later than 24 hours after discovery of the emissions event, of an emissions event resulting in the emission of a reportable quantity of air contaminants as determined by commission rule; and (3) to report to the commission in a single report for each emissions event, not later than two weeks after the occurrence of an emissions event that results in the emission of a reportable quantity of air contaminants as determined by commission rule, all information necessary to evaluate the emissions event, including: (A) the name of the owner or operator of the reporting regulated entity [facility]; (B) the location of the reporting regulated entity [facility]; (C) the date and time the emissions began; (D) the duration of the emissions; (E) the nature and measured or estimated quantity of air contaminants emitted, including the method of calculation of, or other basis for determining, the quantity of air contaminants emitted; (F) the processes and equipment involved in the emissions event; (G) the cause of the emissions; and (H) any additional information necessary to evaluate the emissions event. (f) An owner or operator of a regulated entity [facility] required by Section 382.014 to submit an annual emissions inventory report and which has experienced no emissions events during the relevant year must include as part of the inventory a statement that the regulated entity [facility] experienced no emissions events during the prior year. An owner or operator of a regulated entity [facility] required by Section 382.014 to submit an annual emissions inventory report must include the total annual emissions from all emissions events in categories as established by commission rule. (h) The commission may allow operators of pipelines, gathering lines, and flowlines to treat all such facilities under common ownership or control in a particular county as a single regulated entity for the purpose of assessment and regulation of emissions events. SECTION 2. Section 382.0216, Health and Safety Code, is amended by amending Subsections (a), (b), (c), (f), and (i) and adding Subsection (b-1) to read as follows: (a) In this section, "emissions event" and "regulated entity" have [has] the meanings [meaning] assigned by Section 382.0215. (b) The commission shall establish criteria for determining when an emissions event or a series of emissions events are excessive. The criteria must include consideration of: (1) [the frequency of the facility's emissions events; [(2) the cause of the emissions event; [(3)] the quantity and impact on human health or the environment of the emissions event; and (2) [(4)] the duration of the emissions event[; [(5) the percentage of a facility's total annual operating hours during which emissions events occur; and [(6) the need for startup, shutdown, and maintenance activities]. (b-1) The commission may determine that an emissions event or a series of emissions events are not excessive based on a failure to meet criteria established by the commission under Subsection (b). If the commission does not determine that an emissions event or a series of emissions events are not excessive on that basis, the commission shall evaluate the emissions event or series of emissions events based on consideration of the following factors: (1) the frequency of the regulated entity's emissions events, taking into consideration the regulated entity's size and complexity; (2) the cause of the emissions event; (3) the quantity and the impact on human health or the environment of the emissions event; (4) the duration of the emissions event; (5) the percentage of a facility's total annual operating hours during which the emissions events occur; (6) the need for startup, shutdown, and maintenance activities; and (7) the impact of the emissions event on the state's compliance with the state implementation plan. (c) The commission shall require the owner or operator of a regulated entity [a facility] to take action to reduce emissions from excessive emissions events. Consistent with commission rules, the owner or operator of a regulated entity [a facility] required to take action under this subsection must either file a corrective action plan or file a letter of intent to obtain authorization for emissions from the excessive emissions events, provided that the emissions are sufficiently frequent, quantifiable, and predictable. If the intended authorization is a permit, a permit application shall be filed within 120 days of the filing of the letter of intent. If the intended authorization is a permit by rule or standard exemption, the authorization must be obtained within 120 days of the filing of the letter of intent. If the commission denies the requested authorization, within 45 days of receiving notice of the commission's denial, the owner or operator of a regulated entity [facility] shall file a corrective action plan to reduce emissions from the excessive emissions events. (f) Consistent with the federal Clean Air Act, the commission by rule may establish an affirmative defense to a commission enforcement action if the emissions event is determined not to be excessive under this section. The commission may not authorize the use of the affirmative defense if the unauthorized emissions: (1) caused or contributed to: (A) an exceedance of the national ambient air quality standards; (B) prevention of significant deterioration increments; or (C) a condition of air pollution; or (2) were a part of a frequent or recurring pattern indicative of inadequate design, operation, or maintenance [The commission by rule may establish an affirmative defense to a commission enforcement action if the emissions event meets criteria defined by commission rule. In establishing rules under this subsection, the commission at a minimum must require consideration of the factors listed in Subsections (b)(1)-(6)]. (i) In the event the owner or operator of a regulated entity [facility] fails to report an emissions event as required by Section 382.0215(b), the commission shall initiate enforcement for such failure to report and for the underlying emissions event itself. This subsection does not apply where an owner or operator reports an emissions event and the report was incomplete, inaccurate, or untimely unless the owner or operator knowingly or intentionally falsified the information in the report. SECTION 3. Sections 382.0215 and 382.0216, Health and Safety Code, as amended by this Act, apply only to an emissions event that occurs on or after the effective date of this Act. An emissions event that occurs before the effective date of this Act is governed by the law in effect when the emissions event occurred, and that law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2005.