2007 TCEQ’s Predetermined Equipment List (PEL) Advisory Group Works to Define Pollution Control Equipment for Tax Relief Purposes

The TCEQ’s Predetermined Equipment List (PEL) Advisory Group held its second meeting to evaluate the current PEL which is a primary piece of the Tax Relief for Pollution Control Property program. The output of the Advisory Group will be a PEL which will contain the legislatively mandated items outlined in HB 3732, items from the existing PEL, and newly proposed items. Ultimately, the PEL will be adopted into the Texas Administrative Code.
HB 3732 requires that the PEL be adopted and effective by January 1, 2008. Thus, TCEQ is pushing a very aggressive timetable for compilation, discussion, and adoption of the new PEL.
A summary of the second meeting is as follows:

There were a considerably larger number of attendees than the number present at the first meeting on Friday, July 6, 2007. The list of attendees has not yet been posted on TCEQ's website, but there were approximately 45 people in attendance.
Overall, there doesn't appear to be significant opposition to many of the Staff proposed revisions to the current PEL items.
The next scheduled meeting is set for August 9, 2007. Much of that meeting will be devoted to the new PEL additions that result from the enactment of H.B. 3732. Sections 4 and 5 of HB 3732 require the TCEQ to adopt rules “establishing a nonexclusive list of facilities, devices, or methods for the control of air, water, or land pollution.” The legislation includes a mandatory list of 18 items, and the TCEQ is seeking feedback on the description and percentage amounts of these items.
There is discussion amongst the group as to whether or not this legislation is limited to electric generation and coal technology. TCC is working alongside TCEQ and with bill sponsors and legislative staff to determine the legislative intent.

Greg Merrell, TCC’s Director of Regulatory Affairs, is in communication with numerous TCC Committees (Air, Water and Waste Management, Tax, and Advocacy) as the PEL develops. As a reminder, comments to define HB 3732 items are due to Greg by Friday, August 3rd.
For specific details regarding the PEL Advisory Workgroup and discussions from the past meeting, please contact Greg Merrell at (512) 646-6404. As a reminder, the next PEL Advisory Workgroup Meeting is set for August 9th.
For more information on the PEL Advisory Group, please see the following website: http://www.tceq.state.tx.us/assistance/Prop2/advisory_group.html

EPA and TCEQ are Working to Resolve Issues Concerning TCEQ’s Flexible Permit Program

TCC recently received word from TCEQ upper management that EPA has concerns with TCEQ implementation of the flexible permit program, particularly with regard to how state-issued flexible permits impact the state implementation plan (SIP).
Within the next month, TCEQ is anticipating that EPA will send letters to holders of state-issued flexible permits informing permittees that EPA has not approved TCEQ’s flexible permit program.
Currently, TCEQ and EPA are working to resolve these issues. TCC understands that any issues that are not resolved will likely be addressed in a rulemaking within the next year. It is not clear at this time as to how EPA intends to handle the deficiencies that it believes exists in the permits.
TCC is working closely with TCEQ on this issue. Please contact Greg Merrell, TCC’s Director of Regulatory Affairs, for specific details on the concerns/issues raised by EPA, or if you have any additional questions.

EPA Details New “Solid Waste” Definition at TCC’s July 19th Water and Waste Management Meeting

Marilyn Goode, EPA (D.C.), Office of Solid Waste, provided a presentation on the proposed definition of “Solid Waste” at the July 19th TCC Water and Waste Management Meeting. This presentation is available to members on the TCC website.
The purpose of the revision is twofold: 1) It streamlines regulation of hazardous secondary materials to encourage beneficial recycling and help conserve resources, and 2) By removing unnecessary controls, recycling these materials will not only be safe, but also easier and more cost-efficient.
Ms. Goode stated that the proposed definition would have a profound impact in that approximately 4,600 facilities and 650,000 tons of hazardous waste would be affected annually, providing a cost savings of approximately $107 million per year. Affected materials include 590,000 tons of material already being recycled, and 60,000 tons of new recycling.
For the latest status of the rulemaking, visit EPA’s Definition of Solid Waste rulemaking webpage at: http://www.epa.gov/epaoswer/hazwaste/dsw/abr.htm

TCEQ Provides an Update on the Texas Surface Water Quality Standards Revision at TCC’s July 19th Water and Waste Management Meeting

Jim Davenport, TCEQ Water Quality Division, provided a presentation the new revisions concerning Texas Surface Water Quality Standards at the July 19th TCC Water and Waste Management Meeting. This presentation is available to members on the TCC website.
TCEQ is currently engaged in Water Quality Standards (WQS) triennial review. The TCEQ last reviewed water quality standards in 1999-2000 with the Commission approval on 7/26/2000.
The TCEQ is looking at 4 main issues during this review process:

Site specific use criteria
Targeted toxic criteria
Nutrient criteria
WET testing

Significant changes in WET testing and permit limits, including sub-leathal end points, are being considered. The EPA is putting pressure on the states to come in line with WET limit guidance. The TCEQ is currently reviewing the WET limit options as presented and will provide guidance at the next Advisory Group meeting, dated August 7, 2007.
Three stakeholder meetings have occurred with the last scheduled for September 6, 2007.
The TCEQ is expected to make a proposal to the Commission during the 3rd quarter of 2007.
Final approval of the TCEQ WQS review is expected in 2009.
Please see the following website for more information on the three stakeholder meetings, including agendas and meeting minutes: http://www.tceq.state.tx.us/permitting/water_quality/stakeholders/swqsawg.html

TCEQ to Offer Grants for Emissions Reductions from Rich-Burn Stationary Compressor Engines

TCEQ leadership contacted TCC to encourage TCC members to participate in this statewide grant program.
As a result of Senate Bill 2000 from the recent legislative session, TCEQ is developing a grant program to retrofit or replace rich-burn compressor engines to reduce emissions of nitrogen oxides across Texas.
Grants will be awarded statewide on a first come, first serve basis.
TCEQ staff is currently developing the grant application and it should be available to the public by late July or early August.
As mandated by the bill, this program will be short-lived. The TCEQ is prohibited from expending funds beyond August 31, 2008.
Please see the following TCEQ website for details on this grant program, including how to qualify for the grant, how to verify emission levels, the grant application itself, and contact information: http://www.tceq.state.tx.us/implementation/air/rules/sb2003.html

TCEQ to Hear Rule Proposals Concerning MACT Standards and SB 12 Emission Reduction Programs (TERP/LIRAP) at the August 8th Commission Agenda

The TCEQ will hear a full slate of rules at their upcoming August 8th agenda, including one concerning new maximum achievable control technology standards (MACT), and two that respectively address revisions to the Texas Emissions Reduction Plan (TERP) and revisions to the Low Income Vehicle Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program (LIRAP). A list of all upcoming rules can be found at the following TCEQ website: http://www.tceq.state.tx.us/rules/pendprop.html%2307022
Procedurally, MACT standards are promulgated (or amended) by the EPA. The TCEQ ultimately incorporates these standards through rulemaking procedures. Once the TCEQ adopts the MACT standards by rule, the TCEQ then seeks formal delegation from the EPA to administer and enforce the MACT requirements. Thus, TCEQ is proposing these MACT standards revisions to avoid inconsistency with federal rule requirements, and to facilitate delegation of MACT standards.
This particular MACT rulemaking proposal will incorporate 6 new MACT standards and will revise 82 current MACT standards.
TCEQ staff states that for the previous MACT standards rulemaking in 2005, the TCEQ received no public comment. For more information on this rulemaking, please see the following TCEQ Executive Summary: http://www.tceq.state.tx.us/assets/public/legal/rules/rule_lib/proposals/07012113_pex.pdf
The SB 12, TERP, proposed rulemaking contains 3 important revisions:

Authorizes the TCEQ to allow vehicle travel on highways and roadways, or portions of a highway or roadway, designated by the commission and located outside a nonattainment area or affected county to count towards the percentage of use requirement - that vehicles be operated at least 75 percent of the annual miles in the nonattainment areas and affected counties;
Implement the cost-effectiveness increase from $13,000 per ton of nitrogen oxides reduced to $15,000 per ton; and
Remove the option for grant recipients to permanently remove the old equipment from the State of Texas. Grant recipients will now be required to recycle or scrap the old equipment or engine.

For more information on this rulemaking, please see the following TCEQ Executive Summary: http://www.tceq.state.tx.us/assets/public/legal/rules/rule_lib/proposals/07022114_pex.pdf
In the second SB 12 rulemaking, there are numerous changes to LIRAP that are being proposed. The most significant changes concern eligibility to participate in the program, and incentives to retire older vehicles to be replaced with newer/cleaner vehicles. The TCEQ Executive Summary outlines all proposed changes. To view the TCEQ Executive Summary, please see the following website: http://www.tceq.state.tx.us/assets/public/legal/rules/rule_lib/proposals/07026114_pex.pdf

Comments on New Effects Screening Levels (ESLs) Should be Submitted to Greg Merrell by August 3rd

To review, the TCEQ is in the process of developing new ESLs for benzene, butoxyethanol, 1,1-dichloroethylene, hexane, methyl n-amyl ketone, and pentene (all isomers). These ESLs are posted on the following TCEQ website for a 60 day public review and comment period that will end on August 17, 2007. http://www.tceq.state.tx.us/implementation/tox/dsd/dsds_about.html
TCC sent notice to its Air Conservation Committee members regarding the comment process and deadlines. As a reminder, comments on any or all chemicals that are currently posted for public comment should be submitted to Greg Merrell, TCC’s Director of Regulatory Affairs ( merrell@txchemcouncil.org ), by Friday, August 3, 2007.

TCC Committee Reminders

·         TCC Air Conservation Committee meeting: August 16th
·         TCC Industrial Health Committee meeting: September 13th
·         TCC Occupational Safety Committee meeting: September 14th
·         TCC Water and Waste Management Committee meeting: October 18th

If you have any questions, comments or need additional information, please contact TCC Regulatory Director, Greg Merrell, at merrell@txchemcouncil.org or (512) 646-6404.