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WHO MUST OBTAIN AN AIR OPERATING PERMIT IN TEXAS?
One way the state of Texas regulates air emissions is through a permitting process. Under the Texas Clean Air
Act of 1971, most new or expanding industries that will emit air contaminants must obtain a permit from the TCEQ before any construction is begun. Such permits require that the facility
install "best available control technology." However, there are exceptions. Some facilities are exempt from the preconstruction permit requirement if they meet conditions set out in the
state's "permit by rule (fomerly called standard exemption)" list, which covers a variety of businesses, most of them small. Some of these companies automatically qualify for a standard
exemption, while others must register for the designation. In addition, many facilities can qualify for "flexible" permits, which were created in 1994. A flexible permit allows an operator
more flexibility by staying under an overall emissions cap and/or individual emission limits. Finally, while most modifications to a facility require either an amendment or renewal of a
permit, a permit "alteration" not resulting in an increase in emission rates or a change in emissions control or a changes that actually results in a decrease in allowable emissions may not
need to meet BACT and go through a full permit amendment or renewal process.
As of April 1994, Texas had issued 20,928 state construction permits in both attainment and
nonattainment areas. Some 14,000 are still active. Permits in nonattainment areas are generally more stringent. It is important to note that until changes adopted, air pollution sources that
were operating before 1972 and have not expanded are not required to have a state construction permit; these are known as "grandfathered" facilities. In 2001, legislation forced all grandfathered companies to apply for a special permit by 2003 or 2004 depending upon the area of the state in which they are located. While not as stringent as a permit for a new facility, these grandfathered permits will require major investments in pollution control equipment. Permits issued after 1991 must be renewed at least every 10 years, although some require renewal every five years.
The 1990 federal Clean Air Act created a new category of permits: federal operating permits. These permits are
required of all major stationary sources that emit air pollutants, including "grandfathered" facilities. The purpose of federal operating permits is to codify all applicable requirements at a
site and provide an enforcement and compliance tool. These permits do not impose new emission reductions. For example, a petroleum refinery operation may have 100 to 200 different rules,
regulations, permits, and variances governing the operation of its facility. A Title V permit codifies them all. Thus, construction permits would be incorporated into an operating permit.
Most major sources, such as utilities, were required to submit their applications to the EPA by 1996. The TCEQ projects that there will be 8,100 federal operating permits issued at some 3,000
sites in Texas. Those facilities with federal operating permits must renew them every five years.
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