TCEQ’s Predetermined Equipment List (PEL) Advisory Group Held Final Meeting on August 9, 2007

The TCEQ’s PEL Advisory Group held its final 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 by rule into the Texas Administrative Code.
A summary of the final meeting is as follows:

TCEQ staff reiterated that this Advisory Group would not make any conclusions and that its purpose is to foster diverse discussion prior to the rulemaking. TCEQ staff pointed to the rulemaking process as the definitive avenue for the public to submit comments on draft PEL items.
From a chemical industry perspective, there are minimal proposed changes to the current PEL.
Discussion and input by Advisory Group members was lively and diverse.
TCEQ staff provided three HB 3732 legislative intent letters from Representatives Hardcastle (R-Vernon), Ritter (D-Nederland), and Deshotel (D-Beaumont) respectively, that were sent to the TCEQ in order clarify HB 3732 language. Grace Montgomery Faulkner, TCEQ’s Small Business and Environmental Division Director, noted that although the letters are not exactly in sync in terms of intent, the Commissioners would weigh these letters in their decision-making process whenever this rulemaking is brought to a Commission agenda. These letters have a minimal impact, if any, from a chemical industry perspective.
Tax appraisers provided input on the draft PEL, and offered push-back at every opportunity to expand pollution control items. The tax appraisers also suggested changes in the approval process for obtaining Use Determinations. This issue was once again verbally argued by the taxpayers as being outside the scope of any PEL list review. The appraisal districts indicated they would like to give the TCEQ input prior to any Use Determination being issued. TCEQ staff respectfully listened, thanked the person for the comment, and then moved on with the discussion.
To be certain, there has been publicity generated by the appraisal districts regarding dramatic reductions in revenue if the TCEQ moves to expand the PEL. However, this publicity is not consistent with the proposed draft PEL, or any communications by TCEQ staff to the Advisory Group. Staff did clarify that the new PEL items outlined in HB 3732 are mandatory, and relate to coal/electric utility processes.

Thus far, TCEQ staff has taken comments from all directions and tried to mold the PEL list accordingly. The proposed draft PEL list is ripe for public comment. Currently, there is little difference between the current PEL and the proposed draft PEL – from a chemical industry perspective.
However, it will be critical for member companies to provide comments on specific PEL items (that impact them respectively) during the public comment period of this PEL rulemaking. Staff expects to propose this rulemaking at an October Commission agenda. Once the proposed rule is published in the Texas Register, the public comment period will begin.
Greg Merrell, TCC’s Director of Regulatory Affairs, has been, and will remain, in communication with numerous TCC Committees (Air, Water and Waste Management, Tax, and Advocacy) as this rulemaking develops and moves to Commission agenda.
For specific details regarding the PEL Advisory Workgroup and discussions from the past meeting, please contact Greg Merrell at (512) 646-6404.
For more information on the PEL Advisory Group, please see the following website:

http://www.tceq.state.tx.us/assistance/Prop2/advisory_group.html

TCEQ to Formally Respond to EPA Regarding TCEQ’s Flexible Permit Program

As mentioned in the previous Regulatory Update, 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).
TCEQ is in the process of formally responding to EPA via a letter to address concerns raised by EPA regarding the flexible permit program.
TCEQ is confidant that the flexible permit program is strong and that through this program sound permits are being generated. TCEQ will point to the fact that BACT requirements are being met, the permits are enforceable, the permits include enhanced monitoring requirements, and the permits have federal applicability.
TCEQ does recognize, however, that there is an issue with the older permits concerning record-keeping requirements. TCEQ specifically questions whether the older flexible permits that have not been amended since 1996/1997 have adequate record-keeping requirements. The concern is that these requirements are not enforceable and that the record-keeping requirement language should be stronger.
TCEQ will work with companies that have older 1996/1997 era flexible permits to strengthen the record-keeping requirement language. This will be done on a case-by-case basis.
Please contact Greg Merrell, TCC’s Director of Regulatory Affairs, for specific details on the concerns/issues raised by EPA, issues related to record-keeping requirements, or if you have any additional questions.

TCEQ Working With TCC on Butadiene and Ethylene Effects Screening Levels (ESLs) Development

TCEQ contacted TCC to update us on the butadiene ESL development status. A summary of the update is as follows:

TCEQ published, on August 9th, the draft Development Support Document (DSD) on the TCEQ website. Interested parties may now review and submit comments to the TCEQ by August 29th. Public comments submitted to the TCEQ by the August 29th deadline will be made available to the peer reviewers.
As noted by the TCEQ website, the TCEQ Toxicology Section is hosting a public information session at the TCEQ campus in Austin, on Wednesday, August 22, 2007 from 10:00 AM – 12:00 PM.
TCEQ staff stated they expect to have the final peer review report available by the week of November 26th (although this might be overly ambitious since that is the week after Thanksgiving).
TCEQ will then hold a second round of public comments, but those dates have not been set at this time.
For more information on the butadiene ESL, please see the following TCEQ website:

http://www.tceq.state.tx.us/implementation/tox/dsd/butadiene.html

Regarding the ethylene ESL, TCEQ recently moved the DSD proposal date from August to mid-November. Thus, the new tentative date for public comment on the ethylene DSD is now mid-November.

The reasoning behind this change concerns the need for additional information, time to include additional studies, and internal review.

For more information on the ESL development process, please see the following TCEQ website: http://www.tceq.state.tx.us/nav/data/effectsscreeninglevels.html

TCEQ to Hold Public Hearings for the SB 12, HB 3732, and MACT Standards Rulemaking Proposals

TCEQ will hold public hearings in September on the SB 12, HB 3732 (all sections accept the PEL sections), and MACT Standards rule proposals. The public hearings are another opportunity for TCEQ staff to outline the respective rule, answer questions, and receive public comment. The TCEQ holds a public hearing/meeting on all air rule proposals. Please note that the HB 3732 discussion will concern all sections of the bill, except sections 4 and 5 which concern the PEL. Thus, the HB 3732 discussion will focus mostly on advanced clean energy permitting timelines.
Relevant Public Hearing dates and locations are as follows:

SB 12, Texas Emissions Reduction Plan Program Revisions (TERP)

September 11th at 2:00 PM in Austin, TX.

SB 12, Low Income Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program (LIRAP)

September 11th at 10:00 AM in Austin
September 11th at 2:00 PM in Houston
September 11th at 2:00 PM in Arlington

HB 3732, Advanced Clean Energy Project Permitting

September 24th at 2:00 PM in Austin

MACT Standards Update

September 18th at 10:00 AM in Austin

For more information on the TCEQ public hearing schedule, please see the following TCEQ website:

http://www.tceq.state.tx.us/rules/hearings.html

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 http://acit.org/ merrell@txchemcouncil.orgThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or (512) 646-6404.