1. PERMITTING ELECTRIC GENERATING UNITS Jim Linville & Erik Hendrickson Air Permits Division

2. Why The Texas Clean Air Act Requires any Stationary Source that Emits Air Contaminants to Receive Authorization from the Texas Commission on Environmental Quality (TCEQ).

3. Statutes and Rules Texas Health and Safety Code Chapter 382 (Texas Clean Air Act) 30 Texas Administrative Code (TAC) Chapter 116 30 Texas Administrative Code (TAC) Chapter 106

4. Types of Authorizations De Minimis Facilities (30 TAC § 116.119) Permits by Rule (30 TAC Chapter 106) Standard Permits (30 TAC 116 Subchapter F) New Source Review (NSR) Permits (30 TAC Chapter 116)

5. De Minimis Fuel Cells (Up to 1 MW) –No Registration Required No Authorization Required –Solar –Wind

6. Permits by Rule PBR 106.511 – Emergency Generators –Emergency Only - Not for Peak Shaving –No Registration PBR 106.512 – Engines and Turbines –Very Limited Use Since Standard Permit for Electric Generating Units Issued in June 2001 –Registration – 45 Day Review

7. Standard Permits Standard Permit for Electric Generating Units –Primarily for Distributed Generation –Output Based NOx Standard in lb/MWh –East and West Texas Standards –Allowance for Combined Heat and Power –Relaxed Standard for Landfill Gas, Digester Gas –Registration – 45 Day Review

8. New Source Review Permit Can Not Qualify for Deminimis, PBR, or Standard Permit Permit Required Prior to Construction Detailed Application with In-Depth Analysis Case by Case Review for BACT Public Notice Required

9. New Source Review Permits (Cont) Review Time – 6 to 12 Months (If No Public Hearing) No Zoning Authority Only Review and Permit Air Emissions General application info located at 30 TAC § 116.110-116.143

10. Nonattainment and Prevention of Significant Deterioration (PSD) Nonattainment Permits are for Major Sources in Nonattainment Areas PSD Permits are for Major Sources in Attainment Areas Pollutant Specific Permits Review Concurrent with and Permit Issued by TCEQ with NSR Permit

11. Other Federal Permits Title IV Acid Rain Permit –Not Required Prior to Construction –Reviewed by and Issued by TCEQ –Only for Utilities that Sell Power to Grid Title V Federal Operating Permit –Not Required Prior to Construction –Reviewed by and Issued by TCEQ –All Major Sources

12. Permitting Statistics Natural Gas Fired Turbine Permits Between 1996 to 2006 –97 Projects Reviewed = 57,199 MW –89 Projects Permitted = 53,317 MW –66 Projects Still Permitted = 35,536 MW 66.6% MW Still Permitted –Pending 1 Project = 330 MW

13. Solid Fueled Units 2 Permits Issued = 1550 MW (Coal) 13 Permits Under Review = 10,100 MW – 600 MW (Lignite and Coal) –1600 MW (Lignite) –1100 MW (Petroleum Coke and Coal) – 300 MW (Petroleum Coke) –6400 MW (Coal) – 100 MW (Wood Refuse)

14. Permitting Difficulties Public Participation NOx Allowances for HGA Ozone Transport Issues CAIR & CAMR Greenhouse Gas – CO2

15. Conclusion All Power Plants will Require Authorization by the TCEQ Most Will Require a NSR Permit and a PSD Permit Probably Require a Title IV and Title V

16. Web Links De Minimis http://www.tceq.state.tx.us/permitting/air /newsourcereview/de_minimis.html http://www.tceq.state.tx.us/permitting/air /newsourcereview/de_minimis.html Permit by Rule http://www.tceq.state.tx.us/permitting/air /nav/air_pbr.html http://www.tceq.state.tx.us/permitting/air /nav/air_pbr.html NSR Permits http://www.tceq.state.tx.us/nav/permits/ air_permits.html

17. QUESTIONS?