[Federal Register Volume 64, Number 208 (Thursday, October 28, 1999)]
[Proposed Rules]
[Pages 58011-58018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28215]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX-102-1-7395; FRL-6465-2]


Approval and Promulgation of Implementation Plans; Texas; 
Reasonably Available Control Technology for Major Stationary Sources of 
Nitrogen Oxides for the Houston/Galveston and Beaumont/Port Arthur 
Ozone Nonattainment Areas

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed conditional approval.

-----------------------------------------------------------------------

SUMMARY: The EPA is proposing conditional approval of rules into the 
Texas State Implementation Plan (SIP). These rules require Reasonably 
Available Control Technology (RACT) at stationary sources of nitrogen 
oxides (NOX) in the Houston/Galveston (H/G), and the 
Beaumont/Port Arthur (B/PA) ozone nonattainment areas. Texas originally 
submitted these rules on June 15, 1993. Texas has made nine revisions 
to the rules since the original Submittal. In this document we propose 
conditional approval of Texas' SIP submittals concerning control of 
NOX emissions dating from June 15, 1993 to May 20, 1998, as 
meeting the NOX RACT requirements of the Federal Clean Air 
Act (the Act).

DATES: Comments must be received on or before November 29, 1999.

ADDRESSES: Your comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section, Environmental Protection 
Agency, Region 6, 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-
2733. Copies of the documents about this action including the Technical 
Support Document, are available for public inspection during normal 
business hours at the above and following location. Persons interested 
in examining these documents should

[[Page 58012]]

make an appointment with the appropriate office at least 24 hours 
before the visiting day.

Environmental Protection Agency, Region 6, 1445 Ross Avenue, Suite 700, 
Dallas, Texas 75202-2733.
Texas Natural Resource Conservation Commission, Office of Air Quality, 
12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Mr. Alan Shar, P.E., Air Planning 
Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-
2733, telephone (214) 665-6691.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. What are we proposing to approve?
II. What are nitrogen oxides?
III. What is Reasonably Available Control Technology?
IV. What are the Clean Air Act's RACT requirements for 
NOX emissions?
V. What are definitions of major sources for NOX?
VI. What are Alternative Control Techniques (ACTs)?
VII. What is a State Implementation Plan?
VIII. What is the Federal approval process for a SIP?
IX. What does Federal approval of a SIP mean to me?
X. What is a nonattainment area?
XI. What counties in Texas will this rule affect?
XII. What are the specific rule revisions we are proposing to 
approve?
XIII. What kind of major source categories will this rule affect?
XIV. Are NOX emission specifications in Texas rule 
comparable with Federal guidelines?
XV. Why is this a conditional approval?
XVI. What are the monitoring requirements?

Administrative Requirements

    Throughout this document ``we,'' ``us,'' and ``our'' means EPA.

I. What Are We Proposing To Approve?

    We are proposing conditional approval of revisions to the Texas 
Rule 30 TAC Chapter 117 for the control of air pollution from nitrogen 
compounds. These measures will reduce NOX emissions in H/G 
and B/PA ozone nonattainment areas. By this approval we are agreeing 
that the State of Texas will be implementing the RACT on sources listed 
in Section XIII of this notice. Specifically, we are proposing to 
conditionally approve revisions submitted on June 15, 1993, August 31, 
1993, June 9, 1994, August 3, 1994, September 21, 1994, December 29, 
1994, March 6, 1996, August 9, 1996, May 21, 1997, and May 20, 1998. 
The approval is conditioned on Texas revising Regulation 117.570 to 
remove the ability to add one standard deviation to the emissions 
baseline for trading purposes. Furthermore, the Texas Accelerated 
Vehicle Retirement (AVR) program is not a part of the approved SIP (see 
62 FR 66576, December 19, 1997, and 63 FR 41756, August 5, 1998); 
consequently, if a source plans to rely upon any emission reduction 
credits generated or claimed through the AVR program, for interim 
compliance with Chapter 117, the State will have to submit a separate 
source specific SIP revision to us for approval.
    Texas must submit the approvals of the alternative case-specific 
specifications under sections 117.121, 117.221, 117.321 and 117.426, by 
the Executive Director or the Commissioners, to the EPA for approval as 
source-specific SIP revisions. Texas must submit approvals of a 
petition for phased RACT under Section 117.540, by the Executive 
Director or the Commissioners, to the EPA for approval as source-
specific SIP revision. Otherwise, a source operating under such a State 
approval is subject to Federal enforcement action for violation of the 
required specifications and/or compliance deadline.

II. What Are Nitrogen Oxides?

    Nitrogen oxides (NOX) belong to the group of criteria 
air pollutants. The NOX are produced from burning fuels, 
including gasoline and coal. Nitrogen oxides react with volatile 
organic compounds (VOC) to form ozone or smog, and are also major 
components of acid rain.

III. What Is Reasonably Available Control Technology?

    Reasonably Available Control Technology is defined as the lowest 
emission limitation that a particular source can meet by applying a 
control technique that is reasonably available considering 
technological and economic feasibility. See 44 FR 53761, September 17, 
1979. This requirement is established by sections 182(b)(2) and 182(f) 
of the Act. These sections, taken together, establish the requirements 
for Texas to submit a NOX RACT regulation for all major 
stationary sources of NOX in ozone nonattainment areas 
classified as moderate and above. A State may choose to develop its own 
RACT requirements on a case by case basis, considering the economic and 
technical circumstances of an individual source.

IV. What Are the Clean Air Act's RACT Requirements for 
NOX Emissions?

    Section 182(b)(2) requires States located in areas classified as 
moderate ozone nonattainment areas to require implementation of RACT 
with respect to all major sources of VOCs. Section 182(f) states that, 
``The plan provisions required under this subpart for major stationary 
sources of volatile organic compounds shall also apply to major 
stationary sources (as defined in section 302 and subsections (c), (d), 
and (e) of the section) of oxides of nitrogen.'' This NOX 
RACT requirement also applies to all major sources in ozone 
nonattainment areas with higher than moderate nonattainment 
classifications.
    On November 25, 1992, (57 FR 55620), we published a notice of 
proposed rulemaking entitled ``State Implementation Plans; Nitrogen 
Oxides Supplement to the General Preamble; Clean Air Act Amendments of 
1990 Implementation of Title I; Proposed Rule,'' (the NOX 
Supplement). The NOX Supplement describes and provides 
preliminary guidance on the requirements of section 182(f) of the Act. 
You should refer to the NOX supplement for further 
information on the NOX requirements. The EPA's mandatory 
Economic Incentive Program (EIP) rules for criteria pollutants appear 
in 40 CFR part 51, subpart U (59 FR 16710). The EPA's discretionary EIP 
rules concerning emission trading appear in the 1994 EIP guidance 
document (59 FR 16690). In addition, other EPA guidance memoranda, such 
as those included in the ``NOX Policy Document for the Clean 
Air Act of 1990,'' (EPA-452/R96-005, March 1996), should also be 
referred to for more information about NOX requirements.
    On August 17, 1994, the Texas Natural Resource Conservation 
Commission (TNRCC) petitioned us under section 182(b) to temporarily 
exempt the B/PA and H/G ozone nonattainment areas from the 
NOX requirements of the Act. The TNRCC asked for the 
exemption based on air quality modeling that indicated that the control 
of NOX would not contribute to attainment of the National 
Ambient Air Quality Standards (NAAQS). We approved the petition on 
April 19, 1995.
    The temporary exemption was to expire on December 31, 1996 with 
RACT compliance no later than May 31, 1997. On March 6, 1996, the TNRCC 
asked us to extend the temporary waiver. The TNRCC asked for an 
extension of the temporary waiver based on section 182(f) of the Act. 
Section 182(f) allows for a waiver of certain federally required 
NOX control measures, if the State demonstrates that 
NOX reductions do not contribute to ozone attainment in 
moderate or above areas. The State submitted modeling information with 
a petition predicting that the NOX reductions would be

[[Page 58013]]

counterproductive to ozone attainment in portions of H/G and B/PA 
areas. The EPA approved the petition and granted an extension until 
December 31, 1997, to allow time for carrying out further modeling. The 
NOX RACT compliance date was as expeditious as practicable, 
but no later than May 31, 1999. Based on this further modeling, TNRCC 
allowed the waiver to expire. We provided notice that the waiver had 
expired in the Federal Register on February 12, 1998 (63 FR 7071). The 
NOX RACT compliance date was extended to no later than 
November 15, 1999.
    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC (and NOX) emissions not covered by 
either a pre-enactment or post-enactment control techniques guideline 
(CTG) document. There were no NOX CTGs issued before 
enactment and we have not issued a CTG document for any NOX 
sources since enactment of the Act. States can use the information 
contained in the Alternative Control Techniques (ACTs) to develop their 
RACT rules. The Texas rules covering NOX sources and 
submitted as SIP revisions require final installation of the actual 
NOX controls as expeditiously as practicable, but no later 
than November 15, 1999.

V. What Are Definitions of Major Sources for NOX?

    Section 302 of the Act generally defines ``major stationary 
source'' as a facility or source of air pollution which emits, when 
uncontrolled, 100 tons per year (tpy) or more of air pollution. This 
general definition applies unless another specific provision of the Act 
explicitly defines major source differently. Therefore, for 
NOX, a major source is one which emits, when uncontrolled, 
100 tpy or more of NOX in marginal and moderate areas. 
According to section 182(c) of the Act, a major source in a serious 
nonattainment area is a source that emits, when uncontrolled, 50 tpy or 
more of NOX.
    According to section 182(d) of the Act, a major source in a severe 
nonattainment area is a source that emits, when uncontrolled, 25 tpy or 
more of NOX.
    Houston is a severe ozone nonattainment area, so the major source 
size for Houston is 25 tpy or more, when uncontrolled. Beaumont is a 
moderate ozone nonattainment area, so the major source size for 
Beaumont is 100 tpy or more, when uncontrolled.

VI. What Are Alternative Control Techniques (ACTs)?

    Section 183(c) of the Act provides that we will issue technical 
documents which identify alternative controls for stationary sources of 
oxides of nitrogen which emit, when uncontrolled, 25 tpy or more of 
this pollutant. These ACT documents are to be subsequently revised and 
updated by us. The information in the ACT documents is generated from 
EPA papers, literature sources and contacts, control equipment vendors, 
engineering firms, and Federal, State, and local regulatory agencies. 
States can use information in the ACT to develop their RACT 
regulations. The following table contains list of ACT documents for 
various source categories of NOX with their corresponding 
EPA publication numbers.

   Table I.--ACT Documents for Source Categories of NOX and their EPA
                           Publication Numbers
------------------------------------------------------------------------
            Source category                  EPA publication number
------------------------------------------------------------------------
Nitric/adipic Acid Plants.............  EPA-450/3-91-026
Gas Turbines..........................  EPA-453/R-93-007
Process Heaters.......................  EPA-453/R-93-034
Internal Combustion Engines...........  EPA-453/R-93-032
Cement Plants.........................  EPA-453/R-94-004
Non-utility Boilers...................  EPA-453/R-94-022
Utility Boilers.......................  EPA-453/R-94-023
Glass Manufacturing...................  EPA-453/R-94-037
Iron and Steel Manufacturing..........  EPA-453/R-94-065
------------------------------------------------------------------------

VII. What is a State Implementation Plan?

    Section 110 of the Act requires states to develop air pollution 
regulations and control strategies to ensure that State air quality 
meets the NAAQS established by the EPA. The NAAQS are established under 
section 109 of the Act to protect public health, and they address six 
criteria pollutants. These criteria pollutants are: carbon monoxide, 
nitrogen dioxide, ozone, lead, particulate matter, and sulfur dioxide.
    Each state must submit these regulations and control strategies to 
us for approval and incorporation into the federally enforceable SIP. 
Each state has a SIP designed to protect air quality. These SIPs can be 
extensive, containing State regulations or other enforceable documents 
and supporting information such as emission inventories, monitoring 
networks, and modeling demonstrations.

VIII. What Is the Federal Approval Process for a SIP?

    In order for State regulations to be incorporated into the 
federally enforceable SIP, States must formally adopt the regulations 
and control strategies consistent with State and Federal requirements. 
This process includes a public notice, a public hearing, a public 
comment period, and a formal adoption by a state-authorized rulemaking 
body.
    Once a State rule, regulation, or control strategy is adopted, the 
State may submit the adopted provisions to us and request that these 
provisions be included in the federally enforceable SIP. We must then 
decide on an appropriate Federal action, provide public notice on this 
action, and seek

[[Page 58014]]

additional public comment regarding this action. If adverse comments 
are received, we must address them prior to a final action.
    All State regulations and supporting information approved by us 
under section 110 of the Act are incorporated into the federally 
approved SIP. Records of these SIP actions are maintained in the Code 
of Federal Regulations (CFR) at Title 40, part 52, entitled ``Approval 
and Promulgation of Implementation Plans.'' The actual State 
regulations which were approved are not reproduced in their entirety in 
the CFR but are ``incorporated by reference,'' which means that we have 
approved a given State regulation with a specific effective date.

IX. What Does Federal Approval of a SIP Mean to me?

    Enforcement of the State regulation before and after it is 
incorporated into federally approved SIP is primarily a state function. 
However, once the regulation is federally approved, we and the public 
may take enforcement action against violators of these regulations if 
the State fails to do so.

X. What Is a Nonattainment Area?

    A nonattainment area is a geographic area in which the level of a 
criteria air pollutant is higher than the level allowed by Federal 
standards. A single geographic area may have acceptable levels of one 
criteria air pollutant but unacceptable levels of one or more other 
criteria air pollutants; thus, a geographic area can be attainment for 
one criteria pollutant and nonattainment for another criteria pollutant 
at the same time. It has been estimated that 60 percent of Americans 
live in nonattainment areas. The H/G and B/PA are nonattainment areas 
for ozone.

XI. What Counties in Texas Will This Rule Affect?

    This rule affects the H/G and B/PA ozone nonattainment areas. The 
B/PA area is classified as moderate ozone nonattainment and includes 
the following counties: Hardin, Jefferson, and Orange. The H/G is 
classified as severe ozone nonattainment and includes the following 
counties: Brazoria, Chambers, Fort Bend, Harris, Galveston, Liberty, 
Montgomery, and Waller. If you are in one of these counties, you should 
refer to the rules to determine if and how this rule will affect you.

XII. What Are the Specific Rule Revisions EPA is Proposing To 
Approve?

    The State of Texas submitted the NOX RACT program 
Chapter 117, ``Control of Air Pollution From Nitrogen Compounds,'' as a 
number of revisions to the SIP. This rulemaking will address the 
following SIP revisions:
    A. On June 15, 1993, the Governor submitted a major revision that 
adopted new NOX regulations, sections 117.10, 117.101-
117.601, and repealed the old regulations, Sections 117.1-117.4. Texas 
submitted this revision to us to comply with the Act's 1990 amendments 
requirements concerning control of nitrogen oxides emissions at major 
stationary sources in ozone nonattainment areas. These rules included 
emission limitations, control technologies, and a RACT averaging 
program allowing facility-wide averaging with each unit having an 
enforceable emission limit. The Texas Register published these 
regulations on May 28, 1993 (18TR3409) and effective June 9, 1993.
    B. On August 30, 1993, Texas adopted amendments to sections 117.105 
and 117.205, repealed sections 117.540, 117.550, and added new sections 
117.540, 117.550, and 117.580. Texas added section 117.540, phased 
RACT, to allow affected sources to petition TNRCC for a later 
compliance date. A source may receive the later compliance date, if it 
shows there were unforseen and unavoidable delays in delivery, 
construction and installation of control equipment. The new section 
117.550 provided an avenue for a general permit approach for collateral 
criteria pollutant increases. The new section 117.580 provided for a 
NOX source cap program. Instead of unit emission rates, a 
facility could comply with an overall facility mass emissions cap. The 
cap was based upon the average actual activity level, using the lower 
of actual or allowable for previously permitted sources; restricted how 
shutdown units may be incorporated; restricted how units exempt from 
NOX RACT can be incorporated; and required that the area's 
offset ratio be used for exempt units brought into the plant cap. The 
proposed changes were part of a series of proposed revisions to Chapter 
117 being developed in response to requirements by the Act and EPA 
comments. The Texas Register published the amendments to these sections 
on December 3, 1993 (18TR8956) and effective December 15, 1993.
    C. On May 25, 1994, Texas adopted amendments to sections 117.10, 
117.103-117.121, 117.203-117.221, 117.311-117.321, 117.411-117.421, 
117.510-117.560, added section 117.223, and repealed section 117.580. 
The new section 117.580 provided for a NOX source cap 
program. Section 117.580 (source cap) was moved to Section 117.223. A 
new subsection 117.540(c) allowed the use of MERCs from scrappage for 
interim compliance with Chapter 117, if the source followed the 
procedures of section 117.570 (Trading). The life of these vehicle 
scrappage MERCs was three years. The Texas Register published the 
adopted revisions on June 10, 1994 (19TR4523) and effective June 23, 
1994.
    D. On July 27, 1994, Texas adopted the new section 117.570 and 
repealed the old section 117.570. The new 117.570 established a 
NOX RACT trading program to provide a cost-effective 
alternative method of complying with the NOX emission 
specifications of this chapter. Under the new trading program, an owner 
or operator may reduce the required amount of NOX emissions 
by using an approved Emission Reduction Credit (ERC). The ERC may be 
generated by another company in the same ozone nonattainment area. 
Shutdown credits can be generated and used only by sources 
participating in a source cap. The source cap provisions in section 
117.223 did not allow for generation of paper credits. The Texas 
Register published these changes on August 9, 1994 (19TR6223) and 
effective August 23, 1994.
    E. On August 31, 1994, Texas adopted amendments to sections 
117.451, 117.510, 117.520, 117.530, and 117.601. The purpose of the 
adopted changes was to extend the final compliance date of the Chapter 
117 rule from May 31, 1995, to May 31, 1997. The Texas Register 
published these revisions on September 9, 1994 (19TR7128) and effective 
September 22, 1994.
    F. On December 7, 1994, Texas adopted amendments to section 
117.510. The amendment extends the Federal acid rain January 1, 1995 
compliance date under section 117.510(2)(A), concerning certification 
of continuous emissions monitoring systems for Phase II oil-fired and 
Phase II gas-fired units at electric utility sources, to May 31, 1997. 
The Texas Register published these revisions on December 16, 1994 
(19TR10005) and effective January 2, 1995.
    G. On January 10, 1996, Texas adopted amendments to sections 
117.451, 117.510, 117.520, 117.530, and 117.601. The purpose of adopted 
amendments was to extend the final compliance date of the Chapter 117 
rule

[[Page 58015]]

from May 31, 1997, to May 31, 1999. The Texas Register published these 
revisions on January 19, 1996 (21TR516) and effective February 1, 1996.
    H. On July 24, 1996, Texas adopted revisions to section 117.540. 
The amendments to section 117.540, regarding Phased RACT, extended 
applicable dates to be consistent with the May 31, 1999 final 
compliance date. This revision extended the final compliance date for 
an approved phased RACT request to August 31, 2000. In addition, Texas 
added new subsection 117.540(c), allowing the use of clean-fueled 
vehicle MERCs to meet chapter 117 requirements on an interim basis. 
Texas moved the scrappage MERCs to subsection 117.540(b). The life of 
the clean fuel vehicle MERCs is two years for MERCs generated prior to 
September 1, 2002, and there after, the estimated remaining useful 
vehicle life. The Texas Register published these revisions on August 9, 
1996 (21TR7560) and effective August 16, 1996.
    I. On April 30, 1997, Texas adopted the repeal of section 117.550. 
Texas moved the collateral emission increases associated with 
installation of NOX control measures into the permitting 
requirements of Chapter 116. The EPA is acting on the repeal of section 
117.550, but is not acting on Chapter 116 in this action. The Texas 
Register published this adoption on May 13, 1997 (22TR4248) and 
effective May 22, 1997.
    J. On May 20, 1998, Texas adopted revisions to subsections 117.451, 
117.510, 117.520, 117.530, 117.540, and 117.601 extending the final 
NOX RACT compliance date, for certain major source nitrogen 
oxides control measures in the H/G and B/PA ozone nonattainment areas, 
to November 15, 1999, and made emission monitoring requirements more 
flexible. Texas extended the final phased RACT compliance date to no 
later than February 15, 2001. Texas revised the compliance period for 
carbon mooxide emissions, in subsection 117.105(j), from a twenty-four 
hour period to an hourly period for any electric utility unit which 
does not use a Continuous Emission Monitoring System (CEMS) or 
Presumptive Emission Monitoring System (PEMS) for CO, stating that 
twenty-four hours of manual stack sampling is impractical. The Texas 
Register published this adoption on June 5, 1998 (23TR5973) and 
effective June 10, 1998.

XIII. What Kind of Major Source Categories Will This Rule Affect?

    This rule will affect NOX emissions from the following 
existing source categories in Texas: (a) Utility boilers, steam 
generators, auxiliary steam boilers, and gas turbines used to generate 
electricity in H/G and B/PA ozone nonattainment areas (see section 
117.101 of this rule); (b) commercial, institutional, or industrial 
boiler (non-utility boiler) and process heaters in H/G and B/PA with a 
maximum rated capacity of 40 million Btu per hour or greater, 
stationary gas turbines in H/G and B/PA with a megawatt (mW) rating of 
1.0 mW or higher; (c) stationary rich burn internal combustion engines 
of 150 horsepower (hp) or greater for stationary rich burn internal 
combustion engines in H/G ozone nonattainment area, and stationary 
internal combustion engines of 300 hp or greater for stationary 
internal combustion engines in B/PA ozone nonattainment area (see 
section 117.210 of this rule); and (d) nitric acid manufacturing (see 
section 117.401 of this rule) and adipic acid manufacturing (see 
section 117.301 of this rule) plants in H/G and B/PA ozone 
nonattainment areas.

XIV. Are NOX Emissions Specifications in Texas Rule 
Comparable With Federal Guidelines?

    The emission specifications in pounds NOX per million 
Btu (lb NOX /MMBtu) from utility boilers are in agreement 
with the ``Alternative Control Techniques Document--NOX 
Emissions from Utility Boilers,'' EPA-453/R-94-023, March 1994, and 57 
FR 55620 (the NOX supplement).
    The emission specifications in pounds NOX per million 
Btu (lb NOX/MMBtu) from non-utility boilers are in agreement 
with the ``Alternative Control Techniques Document--NOX 
Emissions from Industrial/Commercial/Institutional Boilers,'' EPA-453/
R-94-022, March 1994.
    The emission specifications in pound nitrogen dioxide 
(NO2) per ton of acid produced (lb NO2/ton acid) 
from Nitric and Adipic acid manufacturing plants are in agreement with 
the ``Alternative Control Techniques Document--Nitric and Adipic Acid 
Manufacturing Plants,'' EPA-450/3-91-026, December 1991.
    The emission specifications in pounds NOX per million 
Btu (lb NOX/MMBtu) from process heaters are in agreement 
with the ``Alternative Control Techniques Document--NOX 
Emissions from Process Heaters (Revised),'' EPA-453/R-93-034, September 
1993.
    The emission specifications in gram NOX per horsepower-
hour (g/hp-hr) from internal combustion engines are in agreement with 
the ``Alternative Control Techniques Document--NOX Emissions 
from Stationary Reciprocating Internal Combustion Engines,'' EPA-453/R-
93-032, July 1993.
    The emission specifications in parts per million (ppm) 
NOX from stationary gas turbines are in agreement with the 
``Alternative Control Techniques Document--NOX Emissions 
from Stationary Gas Turbines,'' EPA-453/R-93-007, January 1993.
    The NOX emissions specifications in this rule are 
comparable with our guidelines for RACT and ACT documents. A listing of 
our ACT documents is in Table I of this proposed action. For a complete 
review and evaluation of this rule please refer to the Technical 
Support Document (TSD) developed for this proposed action. The 
following table contains a summary of the type of affected sources, 
their corresponding emission limit, and relevant applicability 
information for these sources in the H/G and B/PA nonattainment areas.

Table II.--Summary of the Texas NOX RACT Rule for Sources in the H/G and
                        B/PA Non-attainment Areas
------------------------------------------------------------------------
                                                         Additional
           Source                   NOX limit            information
------------------------------------------------------------------------
Utility Boilers.............  0.26 lb/MMBtu.......  Natural gas or a
                                                     combination of
                                                     natural gas and
                                                     waste oil, 24-hour
                                                     rolling average.
Utility Boilers.............  0.20 lb/MMBtu.......  Natural gas or a
                                                     combination of
                                                     natural gas and
                                                     waste oil, 30-day
                                                     rolling average.
Utility Boilers.............  0.38 lb/MMBtu.......  Coal, tangentially-
                                                     fired, 24-hour
                                                     rolling average.
Utility Boilers.............  0.43 lb/MMBtu.......  Coal, wall-fired, 24-
                                                     hour rolling
                                                     average.
Utility Boilers.............  0.30 lb/MMBtu.......  Fuel oil only, 24-
                                                     hour rolling
                                                     average.
Utility Boilers.............  [a(0.26) + b(0.30)]/  Oil and gas mixture,
                               (a + b).              24-hour rolling
                                                     average, where.
                                                    a = percent natural
                                                     gas heat input.
                                                    b = percent fuel oil
                                                     heat input.

[[Page 58016]]

 
Stationary Gas Turbines.....  42 parts per million  @ 15% O2, natural
                               (ppmvd).              gas,  30
                                                     Mega Watt (mW)
                                                     annual electric
                                                     output 
                                                     2500 hour mW
                                                     rating.
Stationary Gas Turbines.....  65 parts per million  @ 15% O2, fuel oil/
                               (ppmvd).
Stationary Gas Turbines.....  0.20 lb/MMBtu.......  Natural gas, peaking
                                                     units, annual
                                                     electric output
                                                     <2500 hour mW
                                                     rating.
Stationary Gas Turbines.....  0.30 lb/MMBtu.......  Fuel oil, peaking
                                                     units, annual
                                                     electric output
                                                     <2500 hour mW
                                                     rating.
Non-utility Boilers.........  0.10 lb/MMBtu.......  Natural gas, low
                                                     heat release and T
                                                     < 200  deg.F,
                                                     capacity  100 MMBtu/hr.
Non-utility Boilers.........  0.15 lb/MMBtu.......  Natural gas, low
                                                     heat release,
                                                     preheated air 200
                                                      T < 400
                                                      deg.F, capacity
                                                      100
                                                     MMBtu/hr.
Non-utility Boiler..........  0.20 lb/MMBtu.......  Natural gas, low
                                                     heat release,
                                                     preheated air T  400  deg.F,
                                                     capacity  100 MMBtu/hr.
Non-utility Boilers.........  0.20 lb/MMBtu.......  Natural gas, high
                                                     heat release,
                                                     without air or
                                                     preheated air T <
                                                     250  deg.F,
                                                     capacity  100 MMBtu/hr.
Non-utility Boilers.........  0.24 lb/MMBtu.......  Natural gas, high
                                                     heat release,
                                                     preheated air 250
                                                     T < 500
                                                     deg.F, capacity  100 MMBtu/
                                                     hr.
Non-utility Boilers.........  0.28 lb/MMBtu.......  Natural gas, high
                                                     heat release,
                                                     preheated air T  500  deg.F,
                                                     capacity  100 MMBtu/hr.
Process Heaters.............  0.10 lb/MMBtu.......  Natural gas,
                                                     preheated air T ,<
                                                     200  deg.F,
                                                     capacity  100 MMBtu/hr.
Process Heaters.............  0.13 lb/MMBtu.......  Natural gas,
                                                     preheated air 200
                                                     T < 400
                                                     deg.F, capacity  100 MMBtu/
                                                     hr.
Process Heaters.............  0.18 lb/MMBtu.......  Natural gas, low
                                                     heat release,
                                                     preheated air T  400  deg.F,
                                                     capacity  100 MMBtu/hr.
Process Heaters.............  0.10 lb/MMBtu.......  Natural gas, firebox
                                                     T < 1400  deg.F,
                                                     capacity  100 MMBtu/hr.
Process Heaters.............  0.125 lb/MMBtu......  Natural gas, firebox
                                                     1400 T <
                                                     1800  deg.F,
                                                     capacity  100 MMBtu/hr.
Process Heaters.............  0.15 lb/MMBtu.......  Natural gas, firebox
                                                     T  1800
                                                     deg.F, capacity  100 MMBtu/
                                                     hr.
Process Heaters and Non-      0.30 lb/MMBtu.......  Liquid fuel,
 utility Boilers.                                    capacity  100 MMBtu/hr.
Process Heaters and Non-      0.30 lb/MMBtu.......  Wood fuel, capacity
 utility Boilers.                                     100
                                                     MMBtu/hr.
Stationary Gas Turbines.....  42 parts per million  @ 15% O2, rating  10 mW.
Reciprocating Internal        2.0 gram/hp-hr......  Natural gas, rich
 Combustion Engines.                                 burn, stationary,
                                                     capacity  150 hp in H/G,
                                                     capacity  300 hp in B/PA.
Absorbers of Adipic Acid      2.5 lb/ton of acid    24-hr rolling
 Production Units.             produced.             average.
Absorbers of Nitric Acid      2.0 lb/ton of acid    24-hr rolling
 Production Units.             produced.             average.
------------------------------------------------------------------------

XV. Why Is This a Conditional Approval?

    The allowable NOX emission rates are calculated based on 
a rolling 30-day average method (see equation 117.223(b)(1) of this 
rule) and based on a maximum daily cap method (see equation 
117.223(b)(2) of this rule). The definition of actual daily heat input 
in 117.570(b)(2), and the definition of actual historical average of 
the daily heat input in 117.223(b)(1) allow sources to add one standard 
deviation to their baseline heat input or emission rate to establish 
the baseline for generating emission credits. Adding one standard 
deviation to the baseline could generate ``paper credits.''
    We understand from Texas that this allowance was an inadvertent 
oversight and they have committed in the July 19, 1999, letter to 
change the rule and submit it as a SIP revision to our office by 
November 15, 1999. We are conditionally approving the rule based on 
their commitment.

XVI. What Are the Monitoring Requirements?

    The Act requires that SIP rules be enforceable. To insure 
continuous compliance, SIP rules must have monitoring requirements. The 
Texas NOX Rules require either a CEMS or PEMS to ensure 
compliance.
    It is very important to use proper Quality Assurance/Quality 
Control (QA/QC) techniques to insure the monitors read correctly. One 
issue we are concerned with is that the Texas rules allow a Cylinder 
Gas Audit (CGA) to replace the Relative Accuracy Test Audit (RATA) for 
ongoing QA/QC of the monitors.
    Our rules under 40 CFR part 60, New Source Performance Standards 
for new sources prohibit the use of CGA for more than 3 consecutive 
calender quarters. The CGA outlined in 40 CFR part 60, appendix F is 
the test which demonstrates that the analyzer reads correctly over its 
range. For example, in a CGA test you might compare the protocol gases 
of 0 ppm, 50 ppm, and 100 ppm to what the analyzer reads. If the 
analyzer's readings match the concentration of the corresponding 
protocol gas, then the analyzer passes the CGA test. The CGA or 
linearity test however, is only a means of verifying performance of the 
analyzer and not a means of verifying performance of the total 
monitoring system.
    The RATA determines if the CEMS reads correctly during actual 
operation by testing the entire system. The RATA compares the readings 
of the CEMS to an independent ``reference method'' when both the CEMS 
and RATA are

[[Page 58017]]

measuring the pollutant concentration in the stack simultaneously. The 
reference method is designed to be as accurate as possible and verifies 
that the CEMS will perform correctly in normal operation.
    Texas has stated that economic reasons, i.e., higher cost of 
performing a RATA vs. cost of performing a CGA and ease of scheduling a 
CGA as opposed to scheduling a RATA, as the reasons for substituting a 
CGA with RATA for ongoing quality assurance of CEMS. Texas believes, if 
performed correctly, a CGA test provides adequate assurance of monitor 
operation and that additional cost of RATA is not justified.
    We are proposing to agree with Texas in substituting a CGA with 
RATA for ongoing quality assurance of CEMS. As indicated at the outset 
of this notice, we will be collecting comments and consider any 
comments received on this subject by November 29, 1999.

Administrative Requirements

A. Executive Order (E.O.) 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from E.O. 12866, entitled ``Regulatory Planning and 
Review.''

B. Executive Orders on Federalism

    Under E.O. 12875, EPA may not issue a regulation that is not 
required by statute and that creates a mandate upon a State, local or 
tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments, or EPA consults with those governments. If EPA complies by 
consulting, E.O. 12875 requires EPA to provide to the OMB a description 
of the extent of EPA's prior consultation with representatives of 
affected State, local and tribal governments, the nature of their 
concerns, copies of any written communications from the governments, 
and a statement supporting the need to issue the regulation. In 
addition, E.O. 12875 requires EPA to develop an effective process 
permitting elected officials and other representatives of State, local 
and tribal governments ``to provide meaningful and timely input in the 
development of regulatory proposals containing significant unfunded 
mandates.''
    Today's proposed rule does not create a mandate on State, local, or 
tribal governments. The proposed rule does not impose any enforceable 
rules on any of these entities. This proposed action does not create 
any new requirements but simply approves the requirements the State is 
already imposing. Accordingly, the requirements of section 1(a) of E.O. 
12875 do not apply to this proposed rule.
    On August 4, 1999, President Clinton issued a new E.O. on 
federalism, E.O. 13132, (64 FR 43255, August 10, 1999), which will take 
effect on November 2, 1999. In the interim, the current E.O. 12612 (52 
FR 41685, October 30, 1987), on federalism still applies. This rule 
will not have a substantial direct effect on States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in E.O. 12612. The rule affects only one 
State, and does not alter the relationship or the distribution of power 
and responsibilities established in the Act.

C. Executive Order 13045

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23, 
1997), applies to any rule that: (1) is determined to be ``economically 
significant'' as defined under E.O. 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    The EPA interprets E.O. 13045 as applying only to those regulatory 
actions that are based on health or safety risks, such that the 
analysis required under Section 5-501 of the order has the potential to 
influence the regulation. This proposed rule is not subject to E.O. 
13045 because it proposes to approve a State program.

D. Executive Order 13084

    Under E.O. 13084, EPA may not issue a regulation that is not 
required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, E.O. 13084 requires EPA to 
provide to the OMB, in a separately identified section of the preamble 
to the rule, a description of the extent of EPA's prior consultation 
with representatives of affected tribal governments, a summary of the 
nature of their concerns, and a statement supporting the need to issue 
the regulation. In addition, E.O. 13084 requires EPA to develop an 
effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.''
    Today's proposed rule does not significantly or uniquely affect the 
communities of Indian tribal governments. This proposed action does not 
involve or impose any new requirements that affect Indian tribes. 
Accordingly, the requirements of section 3(b) of E.O. 13084 do not 
apply to this proposed rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. Small entities 
include small businesses, small not-for-profit enterprises, and small 
governmental jurisdictions. This proposed rule will not have a 
significant impact on a substantial number of small entities because 
SIP approvals under section 110 and subchapter I, part D of the Act do 
not create any new requirements but simply approve requirements that 
the State is already imposing. Therefore, because the Federal SIP 
proposes approval does not create any new requirements, I certify that 
this proposed action will not have a significant economic impact on a 
substantial number of small entities. Moreover, due to the nature of 
the Federal-State relationship under the Act, preparation of a 
flexibility analysis would constitute Federal inquiry into the economic 
reasonableness of state action. The Act forbids EPA to base its actions 
concerning SIPs on such grounds. See Union Electric Co., v. U.S. EPA, 
427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).
    If the conditional approval is converted to a disapproval under 
section 110(k), based on the State's failure to meet the commitment, it 
will not affect any existing State requirements applicable to small 
entities. Federal disapproval of the State Submittal does not affect 
State-enforceability. Moreover, EPA's disapproval of the Submittal does 
not impose any new requirements. Therefore, I certify that this 
proposal

[[Page 58018]]

action will not have a significant economic impact on a substantial 
number of small entities because it does not remove existing 
requirements nor does it substitute a new Federal requirement.

F. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995, 
signed into law on March 22, 1995, EPA must prepare a budgetary impact 
statement to accompany any proposed or final rule that includes a 
Federal mandate that may result in estimated annual costs to State, 
local, or tribal governments in the aggregate; or to private sector, of 
$100 million or more. Under section 205, EPA must select the most cost-
effective and least burdensome alternative that achieves the objectives 
of the rule and is consistent with statutory requirements. Section 203 
requires EPA to establish a plan for informing and advising any small 
governments that may be significantly or uniquely impacted by the rule.
    The EPA has determined that the approval action proposed does not 
include a Federal mandate that may result in estimated annual costs of 
$100 million or more to either State, local, or tribal governments in 
the aggregate, or to the private sector. This Federal action proposes 
to approve preexisting requirements under State or local law, and 
imposes no new requirements. Accordingly, no additional costs to State, 
local, or tribal governments, or to the private sector, result from 
this proposed action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Nitrogen dioxide, Nitrogen oxides, Nonattainment, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: October 6, 1999.
Jerry Clifford,
Acting Regional Administrator, Region 6.
[FR Doc. 99-28215 Filed 10-27-99; 8:45 am]
BILLING CODE 6560-50-P