
[Federal Register Volume 78, Number 247 (Tuesday, December 24, 2013)]
[Proposed Rules]
[Pages 77621-77628]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30729]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2011-0528; FRL--9904-67--Region 6]


Approval and Promulgation of Implementation Plans; Texas; 
Revisions to the New Source Review (NSR) State Implementation Plan 
(SIP); Standard Permit for Oil and Gas Facilities and Standard Permit 
Applicability

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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[[Page 77622]]

SUMMARY: EPA is proposing to approve revisions to the Texas New Source 
Review (NSR) State Implementation Plan (SIP) submitted by the Texas 
Commission on Environmental Quality (TCEQ) on September 20, 1995; April 
19, 1996; July 22, 1998; and September 11, 2000. These revisions to the 
Texas SIP establish the Standard Permit for Installation and/or 
Modification of Oil and Gas Facilities. EPA also proposes to approve 
non-substantive revisions to the Texas Standard Permit SIP rules 
relating to applicability, submitted on February 1, 2006, and March 11, 
2011. EPA proposes to find that these revisions to the Texas SIP comply 
with the Federal Clean Air Act (the Act or CAA) and EPA regulations and 
are consistent with EPA policies. EPA is proposing these actions under 
section 110 of the Act.

DATES: Comments must be received on or before January 23, 2014.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R06-
OAR-2011-0528, by one of the following methods:
     www.regulations.gov. Follow the on-line instructions for 
submitted comments.
     Email: Ms. Adina Wiley at wiley.adina@epa.gov.
     Mail or delivery: Ms. Adina Wiley, Air Permits Section 
(6PD-R), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, 
Dallas, Texas 75202-2733.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2011-0528. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information the 
disclosure of which is restricted by statute. Do not submit information 
through http://www.regulations.gov or email, if you believe that it is 
CBI or otherwise protected from disclosure. The http://www.regulations.gov Web site is an ``anonymous access'' system, which 
means that EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an email 
comment directly to EPA without going through http://www.regulations.gov, your email address will be automatically captured 
and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment along with any disk or CD-ROM 
submitted. If EPA cannot read your comment due to technical 
difficulties and cannot contact you for clarification, EPA may not be 
able to consider your comment. Electronic files should avoid the use of 
special characters and any form of encryption and should be free of any 
defects or viruses. For additional information about EPA's public 
docket, visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: The index to the docket for this action is available 
electronically at www.regulations.gov and in hard copy at EPA Region 6, 
1445 Ross Avenue, Suite 700, Dallas, Texas. While all documents in the 
docket are listed in the index, some information may be publicly 
available only at the hard copy location (e.g., copyrighted material), 
and some may not be publicly available at either location (e.g., CBI). 
To inspect the hard copy materials, please schedule an appointment with 
the person listed in the FOR FURTHER INFORMATION CONTACT paragraph 
below or Mr. Bill Deese at (214) 665-7253.
    The State submittal related to this SIP revision, and which is part 
of the EPA docket, is also available for public inspection at the State 
Air Agency listed below during official business hours by appointment:
    The State submittals, which are part of the EPA docket, are also 
available for public inspection at the State Air Agency during official 
business hours by appointment: Texas Commission on Environmental 
Quality, Office of Air Quality, 12124 Park 35 Circle, Austin, Texas 
78753.

FOR FURTHER INFORMATION CONTACT: Ms. Adina Wiley, Air Permits Section, 
telephone (214) 665-2115; fax (214) 665-6762; email 
wiley.adina@epa.gov.

SUPPLEMENTARY INFORMATION:
    Throughout this document, the following terms have the meanings 
described below:
     ``we,'' ``us,'' and ``our'' refer to EPA.
     ``Act'' and ``CAA'' means Clean Air Act.
     ``40 CFR'' means Title 40 of the Code of Federal 
Regulations--Protection of the Environment.
     ``SIP'' means State Implementation Plan as established 
under section 110 of the Act.
     ``NSR'' means new source review, a phrase intended to 
encompass the statutory and regulatory programs that regulate the 
construction and modification of stationary sources as provided under 
CAA section 110(a)(2)(C), CAA Title I, parts C and D, and 40 CFR 51.160 
through 51.166.
     ``Minor NSR'' means NSR established under section 110 of 
the Act and 40 CFR 51.160.
     ``NNSR'' means nonattainment NSR established under Title 
I, section 110 and part D of the Act and 40 CFR 51.165.
     ``PSD'' means prevention of significant deterioration of 
air quality established under Title I, section 110 and part C of the 
Act and 40 CFR 51.166.
     ``Major NSR'' means any new or modified source that is 
subject to NNSR and/or PSD.
     ``TSD'' means the Technical Support Document for this 
action.
     ``NAAQS'' means national ambient air quality standards 
promulgated under section 109 of that Act and 40 CFR part 50.
     ``TCEQ'' means ``Texas Commission on Environmental 
Quality.''

Table of Contents

I. What action is EPA proposing?
II. What has the State submitted?
III. EPA's Evaluation
IV. Proposed Action
V. Statutory and Executive Order Reviews

I. What action is EPA proposing?

    EPA is proposing to approve four submittals from the State of Texas 
as revisions to the Texas New Source Review (NSR) State Implementation 
Plan (SIP) that incorporate the Standard Permit for Installation and/or 
Modification of Oil and Gas Facilities (hereafter referred to as the 
``Oil and Gas Standard Permit''). Texas initially submitted the 
Standard Permit provisions on September 20, 1995, and submitted 
subsequent revisions to those provisions on April 19, 1996; July 22, 
1998; and September 11; 2000. We also are proposing to approve 
submittals from the State of Texas as a revision to the NSR SIP that 
contain non-substantive changes to the applicability provisions of the 
Standard Permits SIP permitting program. Texas submitted revisions to 
the Standard Permit applicability provisions on February 1, 2006 and 
resubmitted them on March 11, 2011.
    We have evaluated the SIP submissions for whether they meet the Act 
and 40 CFR part 51, and are consistent with EPA's interpretation of the 
relevant provisions. Based upon our evaluation, EPA has concluded that 
the SIP revision submittals for the Oil and Gas Standard Permit and the 
non-substantive revisions to the Standard Permit applicability 
provisions meet the applicable requirements of the Act and 40 CFR part 
51. Therefore, EPA is proposing to approve the provisions of

[[Page 77623]]

the submittals relating to the Oil and Gas Standard Permit SIP 
revisions and to the Standard Permit applicability provisions. EPA is 
proposing this action under section 110 of the Clean Air Act (CAA).

II. What has the State submitted?

A. Submittals Relating to the Oil and Gas Standard Permit

    The TCEQ has developed and submitted the Oil and Gas Standard 
Permit as a revision to the Texas Minor NSR permit program. The 
Standard Permit was initially developed by TCEQ in 1995, and TCEQ has 
adopted subsequent amendments and submitted these as revisions to the 
Texas SIP since that time. As discussed in Section I of this 
rulemaking, EPA is proposing approval of the Oil and Gas Standard 
Permit--from the date of the initial submittal, dated September 20, 
1995, through the September 11, 2000 SIP revision. This Section 
contains a brief summary of each of the SIP revisions pertaining to the 
Oil and Gas Standard Permit that is subject to our proposed approval.
i. September 20, 1995 SIP Submittal
    On July 26, 1995, the Texas Natural Resources Conservation 
Commission (TNRCC) \1\ adopted revisions to the state regulations to 
establish the Oil and Gas Standard Permit. The Standard Permit was 
adopted at Title 30 of the Texas Administrative Code (30 TAC) Chapter 
116.617(3). Note that the September 20, 1995 SIP submittal contained 
additional, severable, revisions to 30 TAC Chapter 116, which are not 
addressed as part of this rulemaking.
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    \1\ TNRCC is the predecessor agency of the TCEQ.
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ii. April 19, 1996 SIP Submittal
    On March 27, 1996, the TNRCC adopted amendments to the state 
regulations to delete 30 TAC 116.617(3)--Installation and/or 
Modification of Oil and Gas Facilities and move the Standard Permit to 
30 TAC 116.620. The Standard Permit previously contained in 30 TAC 
116.617(3) was moved and renumbered to conform these sections to Texas 
Register style conventions and to allow ease in revising the section in 
the future. Note that the April 19, 1996 SIP submittal contained 
additional, severable, revisions to 30 TAC Chapter 116, which are not 
addressed as part of this rulemaking.
iii. July 22, 1998 SIP Submittal
    On June 17, 1998, the TNRCC adopted amendments to the state 
regulations that included amendments to 30 TAC 116.620. These revisions 
added a requirement that sources subject to National Emission Standards 
for Hazardous Air Pollutants (NESHAPs) show compliance with Maximum 
Achievable Control Technology (MACT) standards, and also made non-
substantive changes. Note that the July 22, 1998 SIP submittal 
contained additional, severable, revisions to 30 TAC Chapter 116, which 
are not addressed as part of this rulemaking.
iv. September 11, 2000 SIP Submittal
    On August 9, 2000, the TNRCC adopted amendments to the state 
regulations that included amendments to 30 TAC 116.620. These revisions 
made non-substantive changes. Note that the September 11, 2000 SIP 
submittal contained additional, severable, revisions to 30 TAC Chapters 
101 and 116, which are not addressed as part of this rulemaking.

B. Relating to Standard Permit Applicability Provisions

i. February 1, 2006 SIP Submittal
    On January 11, 2006, the TCEQ adopted revisions to the Standard 
Permit SIP rules, which made non-substantive changes to the 
applicability provisions in 30 TAC 116.610(a) and (b). Note that the 
February 1, 2006 SIP submittal contained additional, severable, 
revisions to 30 TAC Chapter 116, which are not addressed as part of 
this rulemaking.
ii. March 11, 2011 SIP Submittal
    On March 11, 2011, the same changes that were submitted on February 
1, 2006, to 30 TAC 116.610(a) and (b) were resubmitted. Note that the 
March 11, 2011 SIP submittal contained additional, severable, revisions 
to 30 TAC Chapter 116, which are not addressed as part of this 
rulemaking.

                       Table 1--Summary of Pending SIP Submittals Addressed in This Action
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                                                                            Sections related to standard permit
        Date submitted to EPA          Date adopted by   Date effective    for installation and/or modification
                                            State         as State rule         of oil  and gas facilities
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9/20/1995...........................         7/26/1995          9/1/1995  Submittal of new Section 116.617(3).
4/19/1996...........................         3/27/1996         4/19/1996  Deletion of Section 116.617(3);
                                                                           Standard Permit moved and renumbered
                                                                           to new Section 116.620 to conform to
                                                                           Texas Register style conventions.
7/22/1998...........................         6/17/1998          7/8/1998  Revisions to Section 116.620.
9/11/2000...........................          8/9/2000          9/4/2000  Revisions to Section 116.620.
02/01/2006..........................        01/11/2006        02/01/2006  Revisions to Section 116.610.
03/11/2011..........................        01/11/2006        02/01/2006  Revisions to Section 116.610.
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                     Table 2--Summary of the Individual Revisions to Each Section Evaluated
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                                             Date
            Section--title               submitted  to   Date adopted   Date effective          Comments
                                              EPA          by State      as State rule
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          30 TAC Chapter 116--Control of Air Pollution by Permits for New Construction or Modification
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                                         Subchapter F--Standard Permits
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Section 116.610--Standard Permit              02/01/06        01/11/06        02/01/06   Non-substantive
 Applicability.                                                                          changes to 116.610(a).
                                                                                         Non-substantive
                                                                                         changes to 116.610(b).
                                              03/11/11        01/11/06        02/01/06  Resubmittal of the
                                                                                         January 11, 2006
                                                                                         adopted changes to
                                                                                         116.610(a) and (b).
Section 116.617--Standard Permit List.       9/20/1995       7/26/1995        9/1/1995  Initial adoption of
                                                                                         Standard Permit at
                                                                                         116.617(3).

[[Page 77624]]

 
                                             4/19/1996       3/27/1996       4/19/1996  Deletion of 116.617(3).
Section 116.620--Installation and/or         4/19/1996       3/27/1996       4/19/1996  Initial adoption of this
 Modification of Oil and Gas                                                             section; Standard
 Facilities.                                                                             Permit moved from
                                                                                         116.617(3).
                                             7/22/1998       6/17/1998        7/8/1998   116.620(a)(4)
                                                                                         removed reference to
                                                                                         standard exemption (SE)
                                                                                         6 and replaced with
                                                                                         reference to PBR
                                                                                         106.512.
                                                                                         116.620(a)(13)
                                                                                         was updated to include
                                                                                         reference to case-by-
                                                                                         case MACT review under
                                                                                         Subchapter C.
                                                                                         116.620(a)(14)
                                                                                         was subdivided into
                                                                                         sections 116.620(a)(14)-
                                                                                         (15).
                                                                                         116.620(a)(16)
                                                                                         was added to require
                                                                                         sources subject to
                                                                                         NESHAPs to show
                                                                                         compliance with MACT
                                                                                         standards.
                                                                                         116.620(a)(15)-
                                                                                         (16) were renumbered to
                                                                                         (17) and (18).
                                                                                         116.620(b)(1)
                                                                                         removed reference to SE
                                                                                         83 and replaced with
                                                                                         reference to PBR
                                                                                         106.476.
                                                                                        
                                                                                         116.620(c)(1)(A) uses
                                                                                         EPA acronym in place of
                                                                                         formal name.
                                                                                        
                                                                                         116.620(c)(1)(J) adds
                                                                                         ``Permits'' to division
                                                                                         name.
                                                                                        
                                                                                         116.620(c)(2)(J) adds
                                                                                         ``Permits'' to division
                                                                                         name.
                                                                                         116.620(d)(3)
                                                                                         changes office name.
                                                                                         116.620(e)(1)
                                                                                         changes office name and
                                                                                         removes ``his or her
                                                                                         designated
                                                                                         representative''.
                                             9/11/2000        8/9/2000        9/4/2000   116.620(a)(4)
                                                                                         eliminated the
                                                                                         parenthetical reference
                                                                                         to the former standard
                                                                                         exemption 6.
                                                                                         116.620(a)(11)
                                                                                         eliminated parentheses
                                                                                         around H2S.
                                                                                         116.620(b)(1)
                                                                                         eliminated the
                                                                                         parenthetical reference
                                                                                         to previous SE 83.
                                                                                         116.620(b)(E)
                                                                                         eliminated reference to
                                                                                         ``exemptions'' and now
                                                                                         refers to ``permits by
                                                                                         rule'' consistent with
                                                                                         the other rule language
                                                                                         updates.
                                                                                        
                                                                                         116.620(c)(1)(J)
                                                                                         changes office name.
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C. Overview of the Oil and Gas Standard Permit

    EPA approved Texas' general regulations for Standard Permits in 30 
TAC Subchapter F of 30 TAC Chapter 116 on November 14, 2003 (68 FR 
64543) as meeting the federal requirements for Minor NSR.\2\ The 
November 14, 2003, action describes how those rules meet EPA's 
requirements for new minor sources and minor modifications. A Standard 
Permit is a minor NSR permit that is adopted under Chapter 116, 
Subchapter F. Subchapter F provides an alternative process for 
approving the construction of certain categories of new and modified 
sources for which TCEQ has adopted a Standard Permit. These provisions 
provide for a streamlined minor NSR mechanism for authorizing the 
construction of certain sources within source categories for which TCEQ 
has adopted a Standard Permit. A Standard Permit is not available to a 
facility or group of facilities that undergo a change that constitutes 
a new major source or major modification under Title I of the Act, part 
C (Prevention of Significant Deterioration of Air Quality) or part D 
(Nonattainment Review). Such major source or major modification must 
comply with the applicable permitting requirements under Chapter 116, 
Subchapter B, which meet the new source review requirements in Title I, 
part C or part D of the Act. A facility that qualifies for a minor NSR 
Standard Permit must also comply with all applicable provisions of 
section 111 of the Act (NSPS) and section 112 of the Act (NESHAP). 
Furthermore, a facility that qualifies for a minor NSR Standard Permit 
must comply with all rules and regulations of TCEQ.
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    \2\ EPA did not approve the Standard Permit for Installation 
and/or Modification of Oil and Gas Facilities in the November 14, 
2003, action as part of the Texas SIP (68 FR 64543, at 64547).
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    A Standard Permit is not a case-by-case Minor NSR SIP permit, but 
rather it is a streamlined mechanism with all permitting requirements 
for construction and operation of a certain source category. Therefore, 
each Standard Permit approved in a SIP should contain all terms and 
conditions on the face of it (combined with the SIP general 
requirements), and it should not be used to address site-specific 
determinations.
    The Oil and Gas Standard Permit was developed to provide a 
streamlined permitting process for oil and gas facilities. The Standard 
Permit contained in 30 TAC 116.620 simplifies the permit review process 
for these facilities by establishing standardized

[[Page 77625]]

conditions applicable to the oil and gas industry, which help to 
streamline the agency review process and allow more rapid approval than 
would be possible under case-by-case minor NSR review permitting.
    The standardized conditions contained in the Oil and Gas Standard 
Permit include emission specifications, control requirements, 
inspection requirements, approved test methods provisions, and 
monitoring and recordkeeping requirements. In addition, a source 
applying for authorization under 30 TAC 116.620 must also meet the 
applicable requirements contained in the other Sections under 30 TAC 
Chapter 116, Subchapter F--Standard Permits, which include registration 
and fee requirements and general permit conditions for Standard 
Permits. In accordance with 30 TAC 116.610(b), the Oil and Gas Standard 
Permit is limited to Minor NSR and cannot be used to authorize a 
project that constitutes a new major stationary source or major 
modification. Therefore, as discussed in the following section, the Oil 
and Gas Standard Permit provisions are evaluated with respect to the 
applicable Minor NSR requirements.
    As previously mentioned, the Oil and Gas Standard Permit includes 
standardized conditions for the emission units located at oil and gas 
facilities that may be authorized by the Standard Permit. The types of 
emission units that may be authorized by the Standard Permit are the 
following:
     Internal combustion engines (ICEs),
     Natural gas turbines (NG turbines),
     Flares,
     Other combustion units (design heat input > 40 million Btu 
per hour),
     Natural gas glycol dehydration units,
     Storage tanks,
     Separators,
     Condensers,
     Vapor recovery units,
     Process vents, and
     Process fugitives.
    In order for one of the previously-listed emission units to be 
authorized by the Standard Permit, that unit must meet the applicable 
unit-specific standardized conditions, and, the oil and gas facility as 
a whole must meet any applicable site-wide standardized conditions 
contained in the Standard Permit. If a proposed project at an oil and 
gas facility includes any emission units that are not explicitly 
covered by the Oil and Gas Standard Permit, the permit applicant would 
turn to another type of Standard Permit authorization or a permit-by-
rule (PBR) or, if necessary, case-by-case NSR permitting for 
authorization. For example, the Oil and Gas Standard Permit does not 
provide authorization for cooling towers. Therefore, an oil and gas 
facility with a cooling tower on-site would not be able to use the Oil 
and Gas Standard Permit to authorize the emissions from that emission 
unit, but could rely upon the separate cooling tower SP or PBR.\3\ Any 
other emission units not specifically authorized under the Oil and Gas 
Standard Permit also could obtain authorization through either a SP or 
PBR that explicitly addresses it or obtain a case-by-case minor NSR 
permit. In addition to cooling towers, other examples of emission units 
that may be found at oil and gas facilities that are not covered by the 
Oil & Gas Standard Permit include, but are not limited to, truck 
loading emissions, heat exchangers, amine sweetening units, and sulfur 
recovery units. If EPA discovers evidence to support the determination 
that the TCEQ were found to be misapplying the Oil and Gas Standard 
Permit or a permittee obtained authorization under this Standard Permit 
for emission units that are outside the scope of 116.620, then EPA or 
the public could address this implementation failure on a permit 
specific basis or other CAA remedy mechanism, such as a finding of 
failure to implement.
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    \3\ For example, cooling towers, including those located at oil 
and gas facilities, that meet all of the applicable PBR requirements 
may be authorized under the SIP-approved Cooling-Water Unit PBR 
found at 30 TAC 116.371.
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III. EPA's Evaluation

    The Act at Section 110(a)(2)(C) requires states to develop and 
submit to EPA for approval into the state SIP, preconstruction review 
and permitting programs applicable to certain new and modified 
stationary sources of air pollutants for attainment and nonattainment 
areas that cover both major and minor new sources and modifications, 
collectively referred to as the NSR SIP. The CAA NSR SIP program is 
composed of three separate programs: Prevention of Significant 
Deterioration (PSD), Nonattainment New Source Review (NNSR), and Minor 
NSR. PSD is established in part C of title I of the CAA and applies in 
areas that meet the NAAQS--``attainment areas''--as well as areas where 
there is insufficient information to determine if the area meets the 
NAAQS--``unclassifiable areas.'' The NNSR SIP program is established in 
part D of title I of the CAA and applies in areas that are not in 
attainment of the NAAQS--``nonattainment areas.'' The Minor NSR SIP 
program addresses construction or modification activities that do not 
emit, or have the potential to emit, beyond certain major source/major 
modification thresholds and thus do not qualify as ``major'' and 
applies regardless of the designation of the area in which a source is 
located. Any submitted SIP revision, including revisions to a Minor NSR 
program, must meet the applicable requirements for SIP elements in 
section 110 of the Act, and be consistent with all applicable statutory 
and regulatory requirements.
    EPA regulations governing the criteria that states must satisfy for 
EPA approval of the NSR programs as part of the SIP are contained in 40 
CFR Sections 51.160-51.166. Regulations specific to Minor NSR programs 
are contained in 40 CFR Section 51.160-51.164. The TCEQ has developed 
the Oil and Gas Standard Permit as a component of the Texas Minor NSR 
program; therefore we will evaluate the Standard Permit as submitted on 
September 20, 1995; April 19, 1996; July 22, 1998; and September 11, 
2000, against the federal requirements for Minor NSR programs.
    40 CFR Section 51.160 establishes the requirements that all Minor 
NSR programs must meet. We will address these specific requirements in 
Section III.A. 40 CFR Section 51.161 establishes the public notice 
requirements for Minor NSR programs. We will address the public notice 
requirements more fully in Section III.B. Section 51.160-51.164 
requires that a SIP revision demonstrate that the adopted rules will 
not interfere with any applicable requirement concerning attainment and 
reasonable further progress, or any other applicable requirement of the 
CAA. We will address the specific requirements for permitting 
activities that ensure attainment more fully in Section III.C.

A. EPA's Evaluation of Requirements for Minor NSR

    EPA's regulations addressing a Minor NSR program as part of a 
state's SIP are included at 40 CFR 51.160, which applies to all 
programs under Title I of the CAA. These provisions of a Minor NSR 
program must provide that the permitting authority will not permit the 
construction of a facility or modification that will cause a violation 
of applicable portions of the control strategy or interfere with 
attainment or maintenance of a NAAQS. To accomplish this goal, the 
state's Minor NSR program must include the means by which the state 
agency will review and take final action on proposed new construction 
or modification to be protective of the control strategy and NAAQS. As 
stated in 40 CFR 51.160, all NSR programs, including the Minor

[[Page 77626]]

NSR program, must include legally enforceable \4\ procedures that meet 
the following requirements:
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    \4\ A requirement is ``legally enforceable'' if some authority 
has the right to enforce the restriction. 67 FR 80186, at 80190.
---------------------------------------------------------------------------

     Provide for the submission, by the owner or operator of 
the building, facility, structure or installation to be constructed or 
modified of such information on the nature and amounts of emissions to 
be emitted by it or emitted by associated mobile sources; and the 
design, construction and operation of such facility, building, 
structure, or installation as may be necessary to allow the permitting 
authority to make a determination on approvability. 40 CFR 51.160(c).
     The Minor NSR program must provide that approval of any 
construction or modification must not affect the responsibility of the 
owner or operator to comply with applicable portions of the control 
strategy. 40 CFR 51.160(d).
     The Minor NSR program must include procedures to identify 
the types and sizes of facilities, buildings, structures, or 
installations which will be subject to review. The Minor NSR program 
must also discuss the basis for determining which facilities will be 
subject to review. 40 CFR 51.160(e).
     The Minor NSR program must also discuss the air quality 
data and the dispersion or other air quality modeling used to meet the 
NSR requirements. 40 CFR 51.160(f).
    The SIP submittals being evaluated as part of this rulemaking are 
for a Standard Permit that is submitted as part of Texas's Minor NSR 
program; therefore, the provisions from the Oil and Gas Standard Permit 
are evaluated against the federal requirements for Minor NSR and in 
conjunction with the existing SIP-approved provisions of the Standard 
Permitting Program found in 30 TAC Chapter 116, Subchapter F--Standard 
Permits that provides the basic requirements that a facility must meet 
to qualify for a Standard Permit.
    Based on our evaluation, we propose to find that the Oil and Gas 
Standard Permit provisions found in 30 TAC 116.620 provide for the 
necessary procedures and applicable requirements that are required for 
Minor NSR programs. Our evaluation is summarized below with additional 
details regarding our evaluation available in the TSD accompanying this 
rulemaking.
    In accordance with 30 TAC 116.611, sources seeking authorization 
via the Oil and Gas Standard Permit are required to submit a Standard 
Permit registration to TCEQ, which is to include information regarding 
the proposed project to be authorized (e.g., emission estimates, 
description of project and related process, description of equipment 
being installed). 30 TAC 116.615 includes general conditions that must 
be met by sources authorized via a Standard Permit, including the Oil 
and Gas Standard Permit. These general conditions specifically require 
that sources authorized under a Standard Permit comply with all 
``rules, regulations, and orders of the commission issued in conformity 
with the [Texas Clean Air Act].'' See 30 TAC 116.615(10). In the case 
where more than one state or federal rule of regulation or permit 
condition are applicable, the source must comply with the most 
stringent requirement or limit. See 30 TAC 116.615(10). Therefore, the 
conditions of the Standard Permit in no way supersede or relax other 
applicable state or federal requirements. In addition, the provisions 
found in the Oil and Gas Standard Permit under 30 TAC 116.620 also 
require that sources authorized under the Standard Permit submit 
appropriate documentation to demonstrate compliance with state and 
federal provisions, including PSD, NNSR, NSPS, and NESHAP. The Standard 
Permit also requires that new or increased emissions authorized under 
the permit shall not cause or contribute to a violation of any NAAQS 
and references that engineering judgment and/or air dispersion modeling 
may be used to demonstrate NAAQS compliance for the specific minor 
construction project. See 30 TAC 116.620(a)(13)-(17). Regarding 
testing, recordkeeping, reporting and monitoring provisions, the Oil 
and Gas Standard Permit contains provisions that include these 
requirements for the emission sources that can be authorized under the 
Standard Permit. See 30 TAC 116.620(c)-(e). As discussed in Section I.E 
of this rulemaking and the accompanying TSD, the Oil and Gas Standard 
Permit may be used to authorize only those emission sources that are 
specifically covered by the Standard Permit provisions. Therefore, the 
Standard Permit contains testing, recordkeeping, reporting and 
monitoring provisions for the covered emission sources as necessary to 
ensure compliance with applicable requirements for those covered 
sources.
    Based on our evaluation of the proposed provisions found in the 
Standard Permit, in conjunction with the underlying SIP-approved 
provisions of the Texas Standard Permitting Program found in Chapter 
116, Subchapter F, we propose to find that the Oil and Gas Standard 
Permit meets the requirements that are applicable to Minor NSR.

B. EPA's Evaluation of Public Availability of Information Requirements 
for Minor NSR

    Federal requirements for public notice of Minor NSR programs are 
found at 40 CFR 51.160 and 51.161. The procedures for a Minor NSR 
program in 40 CFR 51.160 require an opportunity for public comment on 
information submitted by the permit applicant and on the permitting 
authority's analysis of the application, submitted materials and 
proposed approval or disapproval of the permit application. EPA further 
explains at 40 CFR 51.161(b) that opportunity for public comment is, at 
a minimum, the availability for public inspection in at least one 
location in the area affected of the information submitted by the 
owner/operator and of the permitting authority's analysis of the effect 
on air quality; a 30-day period for submittal of public comment; and a 
notice by prominent advertisement in the area affected of the location 
where the public can see the submitted materials and analysis. The SIP 
submittals being evaluated as part of this rulemaking are for a 
Standard Permit; therefore, the provisions from the Oil and Gas 
Standard Permit are evaluated against the federal requirements 
regarding public notice in conjunction with the existing SIP-approved 
provisions of the Standard Permits Program found in 30 TAC Chapter 116, 
Subchapter F--Standard Permits that provides the basic requirements 
that a facility must meet to qualify for a Standard Permit, including 
public participation requirements. See 30 TAC 116.603.
    Based on our evaluation, we propose to find that the SIP's general 
provisions for all Standard Permits found at 30 TAC 116.603 apply to 
the Oil and Gas Standard Permit. These general provisions were found to 
meet EPA's requirements for public participation for minor NSR permits 
and in some cases are more stringent. (73 FR 53716, September 17, 
2008). As required by 30 TAC 116.603, a Standard Permit must comply 
with the following public notice requirements:
     Notice of a proposed Standard Permit is required to be 
published in the Texas Register, the commission's publicly accessible 
electronic media, and in a daily or weekly newspaper of general 
circulation in the area affected by the activity that is subject to the 
proposed permit. If the proposed

[[Page 77627]]

standard permit will have statewide applicability, notice will be 
published in the daily newspaper of largest general circulation within 
each of the following metropolitan areas: Austin, Dallas, and Houston 
and any other regional newspapers designated by the executive director 
on a case-by-case basis. Additionally, the commission will publish 
notice in the Texas Register and issue a press release;
     The notice must provide for a public comment period on the 
proposed Standard Permit of at least 30 days;
     A public meeting is required to be held to provide an 
additional opportunity for public comment;
     Written responses must be prepared to all public comments 
received from the public related to the issuance of a Standard Permit, 
which will be made available to the public;
     Notice of the final action on the proposed Standard Permit 
is required to be published in the Texas Register, including the text 
of the response to comments; and
     Copies of the final issued Standard Permit along with the 
response to public comments received on the draft permit are required 
to be made available at the TCEQ Austin office and appropriate TCEQ 
regional offices.

Subsequent amendments or revocation of an issued Standard Permit must 
also meet the public notice procedures contained in Section 603, as 
required by 30 TAC 116.605.
    Based on our evaluation of the proposed provisions found in the Oil 
& Gas Standard Permit, as well as the underlying SIP-approved 
provisions of the Texas Standard Permitting Program found in Chapter 
116, Subchapter F, we propose to find that the Oil and Gas Standard 
Permit meets the federal public notice requirements that are applicable 
to Minor NSR for those emission sources that are specifically covered 
by the Standard Permit provisions. In addition, Texas has provided 
documentation within their SIP revision submittals to document that the 
SIP-approved public notice process was followed consistent with the 30 
TAC 116.603 requirements when the Oil and Gas Standard Permit was 
initially issued and subsequently amended. The SIP submittals are 
available in the docket accompanying this rulemaking.

C. EPA's Evaluation of the Oil and Gas Standard Permit With Respect to 
Attainment, Reasonable Further Progress, and Other Applicable 
Requirements of the Act

    Under Section 110(l), the regulations submitted as SIP revisions 
establishing the Oil and Gas Standard Permit must meet the procedural 
requirements of Section 110(l) by demonstrating that the State followed 
all necessary procedural requirements such as providing reasonable 
notice and public hearing of the SIP revision. Additionally, the SIP 
revision must demonstrate that the adopted rules will not interfere 
with any applicable requirement concerning attainment and reasonable 
further progress, or any other applicable requirement of the CAA. We 
propose to find that the TCEQ satisfied all procedural requirements 
pursuant to Section 110(l) as detailed in our accompanying TSD.
    A Minor NSR program is a requirement of the CAA and EPA's 
regulations at 40 CFR 51.160-51.164. As discussed in this proposed 
action and in the accompanying TSD, EPA proposes that the Oil and Gas 
Standard Permit as submitted on September 20, 1995, and revised through 
SIP submittals dated April 19, 1996; July 22, 1998; and September 11, 
2000, satisfies the minimum requirements for a Minor NSR program, 
including adequate provisions for legal enforceability and public 
participation to ensure protection of the control strategy and any 
applicable NAAQS. The Oil and Gas Standard Permit also contains 
sufficient safeguards to prevent circumvention of Major NSR permitting 
requirements. Therefore, we propose that the Oil and Gas Standard 
Permit is protective of the NAAQS and applicable control strategy 
requirements and satisfies the requirements of 110(l) of the Act.

D. Summary of EPA's Evaluation of the Oil and Gas Standard Permit

    For the reasons presented above, EPA proposes to find that the Oil 
and Gas Standard Permit, as submitted on September 20, 1995, and 
revisions submitted on April 19, 1996; July 22, 1998; and September 11, 
2000, is limited to Minor NSR. EPA proposes to find that the program 
satisfies the federal requirements for Minor NSR and contains 
sufficient enforceable safeguards to ensure that the NAAQS and 
applicable control strategies are protected.

E. Summary of EPA's Evaluation of the Revisions to the Standard Permit 
Applicability Provisions

    On February 1, 2006, and March 11, 2011, the State of Texas 
submitted revisions to the Standard Permit SIP rules, which made non-
substantive changes to the applicability provisions in 30 TAC 
116.610(a) and (b). The revisions include changes such as defining 
acronyms, changing capitalization, rephrasing, and updating and 
deleting cross-references as appropriate due to revisions to other 
sections. EPA proposes to approve the revisions to 30 TAC 116.610(a) 
and (b) because these changes are ministerial and non-substantive in 
nature.

IV. Proposed Action

    We are proposing to approve the submittals for a Minor NSR Oil and 
Gas Standard Permit submitted September 20, 1995; April 19, 1996; July 
22, 1998; and September 11, 2000. We also are proposing to approve the 
submittals for the Standard Permit SIP rules making non-substantive 
changes to the Standard Permit applicability provisions in 30 TAC 
116.610(a) and (b) as submitted February 1, 2006, and resubmitted March 
11, 2011. EPA is proposing this action in accordance with section 110 
of the Act.
    After review and consideration of public comments, we will take 
final action on the SIP revisions that are identified herein.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Clean Air Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the CAA. Accordingly, 
this notice merely proposes to approve state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);

[[Page 77628]]

     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Incorporation by reference, Hydrocarbons, Intergovernmental relations, 
Lead, Nitrogen oxides, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

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

    Dated: December 16, 2013.
Ron Curry,
Regional Administrator, EPA Region 6.
[FR Doc. 2013-30729 Filed 12-23-13; 8:45 am]
BILLING CODE 6560-50-P


