This standard permit applies to the installation of emissions control equipment or implementation of control techniques as required by any governmental standard, or undertaken voluntarily, or to replace existing emission control equipment or control techniques. This standard permit also authorizes the substitution of compounds used in manufacturing processes for the purpose of complying with governmental standards or to reduce emission effects.

1. (1) The emissions limitations of §106.261(3) or (4) and §106.262(3) of this title (relating to Facilities (Emission Limitations), and Facilities (Emission and Distance Limitations)), referenced in §116.610(a)(1) of this title (relating to Applicability) do not apply to this standard permit. This standard permit cannot be used if the registrant receives notification that in the opinion of the executive director there are significant health effects concerns resulting from an increase in emissions of any air contaminant other than those for which a National Ambient Air Quality Standard has been established, until those concerns are addressed by the registrant to the satisfaction of the executive director.
2. (2) The time period of 45 days in §116.611(b) of this title (relating to Registration Requirements) is modified to 30 days.
3. (3) Section 116.615(4) and (5) of this title (relating to General Conditions) are not applicable to this standard permit.

4. (4) Replacement projects are subject to the following:

   1. (A) The replacement emissions control equipment or control technique must be at least as effective an air pollution control method as the emissions control equipment or control technique being replaced. Equipment installed under this section is subject to all applicable testing and recordkeeping requirements.
   2. (B) The replacement of emissions control equipment or control technique under this section is not limited to the method of control currently in place. Any type of control equipment or control technique may be replaced with any other type of control equipment or control technique as long as all other requirements of this standard permit are met.
   3. (C) If the replacement project does not result in an increase in emissions of any air contaminant, the owner or operator of the facility shall submit registration notice not later than 30 days after the operation of the replacement project begins. If the replacement project will result in an increase of any air contaminant, the registration time period requirements of paragraph (2) of this section are applicable.

5. (5) Installation of the control equipment or implementation of the control technique must not result in an increase in the facility's production capacity unless the capacity increase occurs solely as a result of the installation of control equipment or the implementation of control techniques on existing units. This paragraph is not intended to limit the owner or operator's ability to recover lost capacity caused by a derate resulting from the installation of control equipment or the implementation of a control technique.

   1. (A) The owner or operator shall obtain or qualify for any necessary authorization under §116.110 of this title (relating to Applicability) or §116.116 of this title (relating to Changes to Facilities) prior to utilizing any production capacity increase from a pollution control project required by any governmental standard that:

      1. (i) results in the exceedance of any emission limit in an existing permit, other authorization, or grandfathered baseline; or
      2. (ii) results in an emissions increase which exceeds the emission reduction due to the installation of control equipment or implementation of control techniques.
   2. (B) Any production capacity increase resulting from the voluntary installation of controls or the implementation of control techniques may not be utilized until the owner or operator obtains or qualifies for any necessary authorization under §116.110 or §116.116 of this title.
6. (6) Any emission increase of an air contaminant must occur solely as a result of the installation of control equipment or implementation of a control technique authorized by this section. Emissions increases associated with recovering a derate resulting from the installation of control equipment or the implementation of a control technique are not prohibited by this paragraph.
7. (7) Installation of emission control equipment or implementation of a control technique may not include the installation of a new production facility, reconstruction of a production facility as defined in 40 Code of Federal Regulations (CFR) §60.15(b)(1) and (c), or complete replacement of an existing production facility.

8. (8) If the project, without consideration of any other increases or decreases not related to the project, will result in a significant net increase in emissions of any criteria pollutant, a person claiming this standard permit shall submit, with the registration, information sufficient to demonstrate that the increase will meet the conditions of subparagraph (A) of this paragraph.

   1. (A) The net emissions increase may not:

      1. (i) considering the emission reductions that will result from the project, cause or contribute to a violation of any national ambient air quality standard;
      2. (ii) cause or contribute to a violation of any Prevention of Significant Deterioration (PSD) increment; or
      3. (iii) cause or contribute to a violation of any PSD visibility limitation.

   2. (B) For purposes of this section, "significant net increase" means those emissions increases resulting solely from the installation of control equipment or implementation of control techniques that are equal to or greater than:

      1. (i) the major modification threshold listed in §116.12 of this title (relating to Nonattainment Review Definitions), Table I, for pollutants for which the area is designated as nonattainment, or for precursors to these pollutants; or
      2. (ii) significant as defined in Title 40 CFR §52.21(b)(23) (effective July 20, 1993) for pollutants for which the area is designated attainment or unclassifiable, or for precursors to these pollutants.
   3. (C) Netting is not required when determining whether this demonstration must be made for the proposed project. The increases and decreases in emissions resulting from the project must be included in any future netting calculation if they are determined to be otherwise creditable under PSD and nonattainment new source review provisions of the FCAA, Parts C and D and regulations promulgated thereunder.
9. (9) For purposes of compliance with the PSD and nonattainment new source review provisions of the FCAA, Parts C and D and regulations promulgated thereunder, any increase that is less than significant, or satisfies the requirements of paragraph (8) of this section does not constitute a physical change or a change in the method of operation. For purposes of compliance with the Standards of Performance for New Stationary Sources regulations promulgated by the EPA at 40 CFR §60.14 (effective December 16, 1975), an increase that satisfies the requirements of paragraph (8) of this section also satisfies the requirements of 40 CFR §60.14(e)(5).

Source Note:The provisions of this §116.617 adopted to be effective May 22, 1997, 22 TexReg 4242; amended to be effective July 8, 1998, 23 TexReg 6973.