TITLE 30. ENVIRONMENTAL QUALITY

PART 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

CHAPTER 115. CONTROL OF AIR POLLUTION FROM VOLATILE ORGANIC COMPOUNDS

SUBCHAPTER B. GENERAL VOLATILE ORGANIC COMPOUND SOURCES

DIVISION 1. STORAGE OF VOLATILE ORGANIC COMPOUNDS

30 TAC §§115.112, 115.114, 115.118, 115.119

The Texas Commission on Environmental Quality (TCEQ, agency, or commission) adopts amended §§115.114, 115.118, and 115.119 without changes to the proposed text as published in the October 7, 2016 issue of the Texas Register (41 TexReg 7934), and, therefore, will not be republished. The commission adopts amended §115.112 with change to the proposed text as published and, therefore, will be republished.

The amended sections will be submitted to the United States Environmental Protection Agency (EPA) as revisions to the state implementation plan (SIP).

Background and Summary of the Factual Basis for the Adopted Rules

The 1990 Federal Clean Air Act (FCAA) Amendments (42 United States Code (USC), §§7401, et seq.) require the EPA to establish primary National Ambient Air Quality Standards (NAAQS) that protect public health and to designate areas exceeding the NAAQS as nonattainment areas. For each designated nonattainment area, the state is required to submit a SIP revision to the EPA that provides for attainment and maintenance of the NAAQS.

FCAA, §172(c)(1) requires that the SIP incorporate all reasonably available control measures, including reasonably available control technology (RACT), for sources of relevant pollutants. The EPA defines RACT as the lowest emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility (44 FR 53761, September 17, 1979). For ozone nonattainment areas classified as moderate and above, FCAA, §182(b)(2) requires the state to submit a SIP revision that implements RACT for sources of volatile organic compounds (VOC) addressed in a control techniques guidelines (CTG) document and for all non-CTG major sources.

Under the 2008 eight-hour ozone NAAQS, the Houston-Galveston-Brazoria (HGB) 2008 eight-hour ozone nonattainment area (HGB area), consisting of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties, was classified as a marginal ozone nonattainment area with a July 20, 2015 attainment deadline (77 FR 30088, May 21, 2012). The HGB area did not attain the 2008 eight-hour ozone standard in 2014 but qualified for a one-year attainment date extension in accordance with FCAA, §181(a)(5). The EPA granted a one-year extension on May 4, 2016, extending the HGB area's attainment deadline to July 20, 2016, with a 2015 attainment year (81 FR 26697). Because the HGB area's 2015 design value of 80 parts per billion exceeded the 2008 eight-hour ozone NAAQS, the EPA is reclassifying the HGB area to moderate. The EPA proposed a determination of nonattainment and reclassification of the HGB 2008 eight-hour ozone nonattainment area from marginal to moderate on September 27, 2016 (81 FR 66240). A reclassification of the HGB 2008 eight-hour ozone nonattainment area requires the state to submit an attainment demonstration SIP revision that addresses the ozone standard moderate nonattainment area requirements. As indicated in the EPA's 2008 ozone standard SIP requirements rule, the attainment deadline for moderate classification is July 20, 2018 with an attainment year of 2017 (80 FR 12264, March 6, 2015). These adopted rules address updated RACT for the future required reclassification of the HGB nonattainment area.

The major source threshold for moderate nonattainment areas is a potential to emit (PTE) 100 tons per year (tpy) or more of VOC. However, a PTE of 25 tpy is retained as the major source threshold for the HGB area. The TCEQ submitted a redesignation substitute report to the EPA demonstrating the HGB area attained and would continue to attain the one-hour ozone NAAQS on July 22, 2014, which was approved by the EPA on October 20, 2015 (80 FR 63429). On August 18, 2015, the TCEQ submitted a redesignation substitute report to the EPA demonstrating the HGB area has attained and will continue to attain the 1997 eight-hour ozone NAAQS. On November 8, 2016, the EPA published its final approval of the HGB area redesignation substitute and a finding of attainment for the 1997 eight-hour ozone NAAQS (81 FR 78691) with an effective date of December 8, 2016. On this effective date, the HGB area's major source threshold will be based on the marginal classification for the 2008 eight-hour ozone NAAQS. The commission solicited comment on the expected redesignation; however, none were received. Upon the effective date of the EPA's expected reclassification for the HGB area, the major source threshold would then be based on the area's moderate classification for the 2008 eight-hour ozone NAAQS. However, such a reclassification would not apply retroactively, i.e., sources in the HGB area currently subject to the rule based on the major source threshold for a severe classification would not become exempt from the rule. The adopted Chapter 115, Subchapter B, Division 1, rule revisions address RACT for both CTG and non-CTG major source VOC storage tanks in the HGB area. The crude oil and condensate VOC storage tanks affected by this rulemaking are considered non-CTG sources because these types of tanks are not specifically addressed in a CTG; therefore, rule provisions for these sources only apply at or above the major source threshold in the rule, which is 25 tpy.

The adopted rulemaking revises Chapter 115, Subchapter B, Division 1, to update the RACT requirements for VOC storage tanks in the HGB area. The adopted rulemaking updates mirror revisions incorporated during the December 2011 (36 TexReg 8862) rulemaking (Rule Project Number 2010-025-115-EN) for the Dallas-Fort Worth (DFW) 1997 eight-hour ozone nonattainment area (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties) and the June 2015 (40 TexReg 3907) rulemaking (Rule Project Number 2013-048-115-AI) for the DFW 2008 eight-hour ozone nonattainment area (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties) for VOC storage tanks. The adopted rule changes include: updating the control efficiency requirement for control devices other than vapor recovery units or flares; expanding the applicability to include the aggregate of fixed roof storage tanks at a pipeline breakout station into the control requirements prescribing flashed gas controls; and adding inspection, repair, and recordkeeping requirements for consistency with existing requirements in the DFW area. The 95% control efficiency requirement adopted as part of the December 2011 rulemaking and adopted as part of this rulemaking, was approved as RACT for all CTG and non-CTG VOC storage tanks by the EPA in 2014 (79 FR 53299) for the 1997 eight-hour DFW nonattainment area. The adopted inspection, repair, and recordkeeping requirements are necessary to ensure compliance with the level of RACT established for crude oil and condensate storage tanks. The applicability, inspection, recordkeeping, and increased control efficiency requirements adopted in this rulemaking are already in place for VOC storage tanks in the DFW area.

The commission adopts updates to the control efficiency requirement for control devices other than vapor recovery units and flares in §115.112(e)(3)(A) from 90% to 95% for all storage tanks in the HGB area currently subject to §115.112(e)(3)(A) to be consistent with the commission's RACT determination for storage tanks in the DFW area. The commission expects that all facilities that are currently subject to the 90% control efficiency requirement are already meeting the adopted 95% control efficiency requirement and that this change will not require any of those subject to the current rule to replace their current control device. Vapor control devices, vapor recovery units, and flares are all viable control device options available under the existing control requirements. Sources already meeting the current 90% control efficiency requirement are likely to be operating a vapor recovery unit, a flare, or both. Although this adopted rulemaking increases the required control efficiency of vapor control devices, vapor recovery units and flares are already assumed under the existing rule to at least meet a 95% control efficiency.

This adoption expands the applicability to include the aggregate of fixed roof crude oil and condensate storage tanks at pipeline breakout stations in the HGB area. VOC emissions from all of the fixed roof crude oil and condensate tanks at each pipeline breakout station will now be considered when determining applicability to the Chapter 115 VOC storage tank rules. Owners and operators currently not triggering applicability to the control requirements may now have to comply. There may be some newly affected owners and operators of these sources that would need to install a vapor control system, vapor recovery unit, or flare to meet the rule requirements. At proposal, the commission estimated six sites that could potentially be affected by the proposed applicability for pipeline breakout stations in the HGB area. However, the commission has re-evaluated its original analysis and determined that there are no sites that currently meet the requirements for the newly expanded rule applicability in the HGB area based on 2014 emissions inventory data. Generally, the commission expects the adopted requirements would place minimal burden on affected owners and operators and that the adopted compliance date provides an adequate amount of time for these owners and operators to make all necessary installations and adjustments for compliance purposes. However, the commission's requirements for crude oil and condensate storage tanks in Chapter 115, Subchapter B, Division 1, implement non-CTG RACT, which applies to major sources. As discussed elsewhere in this section of the preamble, in order to prevent backsliding, the major source threshold for the HGB area for the purposes of the Chapter 115 RACT Rule is 25 tpy of VOC emissions. The expanded applicability will be consistent with the current applicability in the DFW area. Retaining the 25 tpy threshold for these tanks is consistent with the 2007 HGB area rulemaking (Rule Project Number 2006-038-115-EN), which based the applicability threshold on total uncontrolled VOC emissions from all similar VOC storage tanks at a site, including the VOC emissions from floating roof tank landings, storage tanks at an upstream tank battery, and all fixed roof tanks at a pipeline breakout station.

As indicated in the 2008 ozone standard SIP requirements rule, the EPA was expected to set the RACT compliance date on a reasonable schedule that the EPA Administrator would establish in the notice and comment rulemaking reclassifying the HGB area from marginal to moderate. In the proposed determination of nonattainment and reclassification of the HGB area (81 FR 66240, September 27, 2016), the EPA proposed a RACT compliance date of January 1, 2017. However, the commission contends that the SIP requirements rule included a July 20, 2018 attainment deadline for moderate areas, with an attainment year of 2017. According to the EPA's 2008 ozone standard SIP requirements rule, adopted measures must be implemented "no later than the outside attainment date for the area's classification, which would be July 20, 2018 for the HGB area (80 FR 12264 and 80 FR 12268)". Establishing a July 20, 2018 compliance deadline provides approximately a year and a half to make any necessary installations and adjustments needed to comply with the adopted rule requirements. Because the EPA has not yet finalized reclassification of the HGB area to moderate and because the EPA provided no objection to the proposed July 20, 2018 attainment date during the public comment period, this rule adoption contains a RACT compliance deadline of July 20, 2018, as was proposed. Furthermore, requiring owners and operators to comply with the requirements by January 1, 2017 would provide less than 30 days after adoption of this rulemaking and is an unrealistic expectation.

Demonstrating Noninterference under FCAA, §110(l)

The revisions adopted in this rulemaking update rule language for major source fixed roof crude oil and condensate storage tanks and tanks storing VOC other than crude oil and condensate in the HGB area, as required under FCAA, §172(c)(1) and §182(b)(2) for nonattainment areas classified as moderate and above. The inspection, recordkeeping, and increased control efficiency requirements adopted in this rulemaking are already in place for storage tanks in the DFW area and have been determined necessary to implement RACT in the HGB area. As part of this rulemaking, revisions are also adopted to extend record retention for all VOC storage tanks in the HGB area and to correct rule citations. These revisions are only adopted for the sections that are simultaneously being revised to implement RACT. Therefore, the commission determined that the adopted revisions would not negatively affect the status of the state's progress towards attainment with the ozone NAAQS, would not interfere with control measures, and would not prevent reasonable further progress toward attainment of the ozone NAAQS.

Section by Section Discussion

Subchapter B, General Volatile Organic Compound Sources

Division 1, Storage of Volatile Organic Compounds

The adopted rulemaking revises Chapter 115, Subchapter B, Division 1, to implement RACT requirements for the HGB 2008 eight-hour ozone nonattainment area. These adopted requirements establish greater stringency to be consistent with the level of RACT established for this emission source category in the DFW 2008 eight-hour ozone nonattainment area, as well as establish the compliance date. The adopted rule updates control requirements for VOC storage tanks by increasing the required control efficiency for all vapor control systems, other than vapor recovery systems and flares, from 90% to 95%. The adopted rules also update inspection and repair requirements after tank opening/loading, quarterly seal integrity inspections, and corresponding recordkeeping requirements for these fixed roof crude oil and condensate storage tanks. Finally, the adopted rule extends the record retention for all affected VOC storage tanks. In addition, the commission adopts other non-substantive revisions to update rule citations and for Texas Register style and formatting requirements. Some of the non-substantive changes for style and formatting purposes may affect areas other than the HGB area, such as the DFW area.

§115.112, Control Requirements

The commission adopts revisions to §115.112(e) to reflect the new compliance schedules that are adopted in subsection (e)(3). Existing subsection (e) stated that the control requirements of the subsection begin on March 1, 2013; however, the revisions to this rule requires new control requirements in the HGB area to be achieved by July 20, 2018.

The commission adopts revisions to §115.112(e)(3)(A) to establish a 95% control efficiency of control devices, other than vapor recovery units and flares, in the HGB area and to accommodate the incorporation of this provision into the existing rule language. Adopted subsection (e)(3)(A)(i) specifies that the 90% control efficiency prescribed in clause (i) no longer applies in the HGB area as of the date specified in clause (ii). The adopted changes to clause (ii) delete the wording of the DFW area control efficiency specification of 95% to incorporate the newly adopted control efficiency requirement for the HGB area. Adopted clause (ii) states that beginning July 20, 2018, a 95% control efficiency is required in the HGB area. The rule language is reformatted to improve reader usability. Finally, adopted clause (iii) contains the 95% control efficiency requirement for the DFW area. The adopted changes to the wording of existing clause (ii), which has been re-numbered to clause (iii), is simply a formatting change and does not impact the existing control requirements for the DFW area. These adopted changes ensure RACT is being implemented for VOC storage tanks in the HGB area consistent with the currently required 95% control efficiency in place for the DFW area.

In response to comments requesting clarification on the applicability of certain control requirements, the commission adopts changes to §115.112(e)(4) - (7). The commission adds "fixed roof" or "fixed roof storage" to adopted paragraphs (4) - (7) where necessary to clarify that these paragraphs apply to fixed roof storage tanks and fixed roof storage tank batteries.

The commission adopts the amendment to §115.112(e)(5) to harmonize the applicability of the control requirement for fixed roof crude oil and condensate storage tanks prior to custody transfer and at pipeline breakout stations in the HGB area. The adopted change requires the aggregate of all fixed roof storage tanks at a pipeline breakout station to control flashed gases using a vapor control system just as individual storage tanks and the aggregate of storage tanks at an upstream tank battery are currently required. In existing subsection (e)(5), only the aggregate of all fixed roof storage tanks at a pipeline breakout station in the DFW area are required to comply with the control requirement. This adopted change expands the existing applicability of affected storage tanks in the HGB area. Because all of the fixed roof crude oil and condensate tanks at each pipeline breakout station will now be considered when determining applicability to the Chapter 115 VOC storage tank rule, as specified in existing §115.112(e)(6), owners and operators currently not triggering applicability to subsection (e) control requirements may now have to comply. The commission relied on the 2014 point source emissions inventory to attempt estimating the number of affected pipeline breakout stations that were assumed to contain multiple condensate or crude oil tanks that are currently not reporting any control device operation. Barring meeting exemption criteria in §115.111, approximately six pipeline breakout stations were identified at proposal as potentially needing to install controls to comply with the applicable control requirements in §115.112. However, the commission has re-evaluated its original analysis and determined that there are no sites that currently meet the requirements for the newly expanded rule applicability in the HGB area. The rule provides affected owners and operators the flexibility to choose the vapor control system best suited for their operation. Vapor recovery units, vapor control devices, and flares are all viable options available under the existing control requirements. Although this adopted rulemaking increases the control efficiency of vapor control devices, vapor recovery units and flares are already assumed to at least meet a 95% control efficiency. The adopted change ensures storage tanks in the HGB area that are intended to be included in the applicability are subject to the RACT control specifications, consistent with the DFW area.

Adopted changes to §115.112(e)(7) incorporate the HGB area into the existing control requirements that currently apply to fixed roof crude oil and condensate storage tanks in the DFW area. Paragraph (7) requires such fixed roof storage tanks prior to custody transfer or at a pipeline breakout station for which the owner or operator is required under subsection (e) to control flashed gases to maintain such tanks in accordance with manufacturer instructions. Paragraph (7) also requires these tanks to be equipped with closure devices maintained according to the manufacturer's instructions or industry standards if manufacturer instructions are not available. These closure devices should be operated in accordance with paragraph (7)(A) - (D), for all openings in the tank through which vapors are not routed to a vapor recovery unit or other vapor control device. These are existing requirements in the DFW area and the adopted rule imposes the same standards for fixed roof crude oil and condensate storage tanks in the HGB area.

§115.114, Inspection and Repair Requirements

The adopted changes to §115.114(a)(5) incorporate the HGB area into the existing inspection and repair requirements for fixed roof crude oil and condensate storage tanks prior to custody transfer or at a pipeline breakout station that are already in place for the DFW area.

Existing §115.114(a)(5)(A), adopted to apply in the HGB area, requires owners and operators of fixed roof crude oil and condensate storage tanks in the HGB area to now engage in a visual, audio, and olfactory inspection of closure devices (e.g., thief hatches) not connected to a vapor control device. Inspections must occur when liquids are not being added to or unloaded from the tank and by the end of the business day during which the closure device was opened for sampling, gauging, or any unloading event. If the owner or operator finds the closure device open for reasons not allowed in §115.112(e)(7)(A), an attempt must be made to close the device during the inspection. If multiple events occur on a single day, a single inspection within one business day after the last event is sufficient. The inspection requirement is limited to closure devices not connected to a vapor control device because connected closure devices are designed to pass vapors to the control device in the presence of sufficient pressure. If a closure device not connected to a control device allows vapors to escape to the atmosphere without control, all flashed gases are not being controlled, as required. These repair requirements are the same repair requirements currently applicable in the DFW area and are similar to leak detection and repair requirements in other divisions of Chapter 115.

Existing §115.114(a)(5)(B), adopted to apply in the HGB area, requires owners and operators of fixed roof crude oil and condensate storage tanks to conduct an audio, visual, and olfactory inspection of all gaskets and vapor sealing surfaces for closure devices not connected to a vapor control device at least once per calendar quarter. This inspection is designed to assure that the sealing surfaces are and will continue to function correctly. If a closure device is not sealing properly, the owner or operator is required to repair it. The first attempt at repair must take place no later than five calendar days after the inspection, and the repair must be complete within 15 calendar days, with some exceptions. If parts are unavailable, they must be ordered promptly and the repair completed within five days of arrival. There is a delay of repair provision that allows delay until the next shutdown if the repair would require a shutdown that would create more emissions in a day than the daily emissions of delayed repair. All repairs are considered complete when the closure device no longer exudes process gases based on sight, smell, or sound. These repair requirements are the same repair requirements currently applicable in the DFW area and are similar to leak detection and repair requirements in other divisions of Chapter 115.

§115.118, Recordkeeping Requirements

Adopted changes to §115.118(a)(6)(D) and (E) remove language that specifies the rules apply only in the DFW area because the commission is expanding the applicability of these recordkeeping provisions to the HGB area. Existing subparagraph (D) requires the owner or operator of any storage tank that stores crude oil or condensate prior to custody transfer or at a pipeline breakout station and is required by §115.112(e) to control flash emissions, to keep records that detail manufacturer or industry standard instructions used to maintain the storage tanks and tank closure devices in use. Existing subparagraph (E) requires the owner or operator of any storage tank that stores crude oil or condensate prior to custody transfer or at a pipeline breakout station to maintain records of the results of each inspection and repair required in §115.112(e)(7) or §115.114(a)(5), including the date of the inspection; the status of the device during inspection; the amount of time a closure device was open since the last inspection for reasons not allowed in §115.112(e)(7)(A); the date repair was attempted and completed; and the list of closure devices awaiting delayed repair as allowed by §115.112(e)(7)(D).

The commission adopts the amendment to §115.118(a)(7) to include a new requirement indicating that any records created on or after January 1, 2017 must be maintained for at least five years. The language extends the record retention time from two years to five years starting with records that originate on January 1, 2017. This adopted change ensures that all applicable records are retained appropriately for the five-year timeframe. The five-year retention schedule being adopted for the HGB area is consistent with other major source recordkeeping requirements and was adopted for the DFW area during the December 2011 rulemaking.

§115.119, Compliance Schedules

The commission adopts revisions to §115.119(a)(1) and (2) to reference §115.112(e)(1) - (6) instead of §115.112(e) to correctly identify which requirements are intended to be complied with by the specified compliance dates. As currently written, subsection (a)(1) implies the HGB area is subject to all of the requirements in §115.112(e)(1) - (7); however, paragraph (7) only applies to the DFW area in the existing rules. The compliance dates in subsection (a)(1) and (2) have already passed and these changes have no bearing on the compliance obligations for owners and operators affected by these paragraphs. These adopted changes are intended to distinguish between the compliance date for existing requirements in the HGB area under §115.112(e)(1) - (6) and the requirements being adopted in the HGB area as part of this rulemaking under §115.112(e)(7).

In addition, the commission adopts the clarification that beginning July 20, 2018 the control efficiency requirement in §115.112(e)(3)(A)(i) no longer applies in the HGB area. Currently, subsection (a)(1) specifies a March 1, 2013 compliance date for owners and operators subject to existing §115.112(e)(3)(A)(i) in the HGB area. The 90% control efficiency requirement in §115.112(e)(3)(A)(i) is being increased in stringency as part of this adopted rulemaking and therefore is superseded by the 95% control efficiency requirement adopted as §115.112(e)(3)(A)(ii).

Additional changes adopted to §115.119(a)(2) clarify that §115.112(e)(3)(A)(i) no longer applies beginning July 20, 2018 and that prior to July 20, 2018, the owner or operator of a storage tank subject to the 90% control efficiency requirement of §115.112(e)(3)(A)(i) should continue to comply with §115.112(e)(3)(A)(i) until compliance has been demonstrated with the 95% control efficiency adopted in §115.112(e)(3)(A)(ii).

The commission adopts §115.119(a)(3) to establish the compliance date for the requirements being adopted in the HGB area as part of this rulemaking. Adopted paragraph (3) requires the affected owner or operator to comply with §§115.112(e)(3)(A)(ii), 115.112(e)(7), 115.114(a)(5), and 115.118(a)(6)(D) and (E) as soon as practicable, but no later than July 20, 2018. These rule references cite the 95% control efficiency requirement, and the inspection, repair, and recordkeeping requirements of the rule. As indicated in the 2008 ozone standard SIP requirements rule, the EPA was expected to set the RACT compliance date on a reasonable schedule that the Administrator would establish in the notice and comment rulemaking reclassifying the HGB area from marginal to moderate. In the proposed determination of nonattainment and reclassification of the HGB area (81 FR 66240, September 27, 2016), the EPA proposed a RACT compliance date of January 1, 2017. However, the commission contends that the SIP requirements rule included a July 20, 2018 attainment deadline for moderate areas, with an attainment year of 2017. In order to satisfy the requirements of the attainment demonstration, adopted measures must be implemented no later than the outside attainment date for the area's classification. The July 20, 2018 compliance deadline provides approximately a year and a half for affected owners and operators to make all necessary installations and adjustments for compliance purposes.

The commission adopts the deletion of §115.119(h) because sources in Wise County are required to comply with the requirements of this division. This subsection was adopted as part of the December 2015 rulemaking for the DFW area (Rule Project Number 2013-048-115-AI) because litigation was still ongoing at the time the rulemaking was adopted. Litigation has since ended making this provision obsolete. Owners and operators of storage tanks in Wise County remain subject to §115.119(f).

Final Regulatory Impact Determination

The commission reviewed the adopted rulemaking in light of the regulatory impact analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking does not meet the definition of a major environmental rule as defined in that statute, and in addition, if it did meet the definition, would not be subject to the requirement to prepare a regulatory impact analysis.

A major environmental rule means a rule, the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure, and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The specific intent of the adopted amendments is to revise Chapter 115, Subchapter B, Division 1, to update the RACT requirements for VOC storage tanks in the HGB area. Potentially affected sources in the HGB area that are already responsible for complying with RACT for the 1997 eight-hour ozone NAAQS must meet an existing 90% control efficiency requirement. The commission expects that all facilities that are currently subject to the 90% control efficiency requirement are already meeting the 95% control efficiency requirement that is required by the adopted amendments, and that this change will not require any of those subject to the current rules to replace their current control device. Generally, the commission expects the adopted requirements to place minimal burden on affected owners and operators and that the adopted compliance date provides an adequate amount of time for these owners and operators to make all necessary installations and adjustments for compliance purposes. The adopted amendments are not anticipated to add any significant additional costs to affected individuals or businesses beyond what is already required to comply with these federal standards on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state.

Additionally, these amendments do not meet any of the four applicability criteria for requiring a regulatory impact analysis for a major environmental rule, which are listed in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225, applies only to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law. The adopted amendments will update RACT requirements for VOC storage tanks in the HGB area.

The state previously adopted Chapter 115 RACT rules for VOC sources in the HGB area as part of the SIP for the 1997 eight-hour ozone standard. On March 27, 2008, the EPA revised both the primary and secondary ozone standard (the eight-hour ozone NAAQS) to a level of 0.075 parts per million (ppm) with an effective date of May 27, 2008 (73 FR 16436). Under the 2008 eight-hour ozone NAAQS, the HGB area, consisting of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties, was classified as a marginal nonattainment area with a July 20, 2015 attainment deadline (77 FR 30088, May 21, 2012). However, the HGB area did not attain the 2008 eight-hour ozone standard by its attainment date, and is expected to be reclassified by the EPA as a moderate ozone nonattainment area for the 2008 eight-hour ozone NAAQS. For nonattainment areas classified as moderate and above, FCAA, §172(b)(1) and §182(b)(2) requires the state to submit a SIP revision that implements RACT for sources of VOC addressed in a CTG document and for all non-CTG major sources. The adopted rules update RACT requirements in Chapter 115, Subchapter B, Division 1, to update the RACT requirements for CTG storage tanks and for non-CTG major source crude oil and condensate storage tanks in the HGB area. The adopted updates mirror revisions incorporated during the December 2011 (36 TexReg 8862) rulemaking for the DFW 1997 eight-hour ozone nonattainment area (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties) and the June 2015 (40 TexReg 3907) rulemaking for the DFW 2008 eight-hour ozone nonattainment area (Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties) for VOC storage tanks.

The adopted rulemaking implements requirements of 42 USC, §7410, which requires states to adopt a SIP that provides for the implementation, maintenance, and enforcement of the NAAQS in each air quality control region of the state. While 42 USC, §7410 generally does not require specific programs, methods, or reductions in order to meet the standard, the SIP must include enforceable emission limitations and other control measures, means or techniques (including economic incentives such as fees, marketable permits, and auctions of emissions rights), as well as schedules and timetables for compliance as may be necessary or appropriate to meet the applicable requirements of this chapter (42 USC, Chapter 85, Air Pollution Prevention and Control). The provisions of the FCAA recognize that states are in the best position to determine what programs and controls are necessary or appropriate in order to meet the NAAQS. This flexibility allows states, affected industry, and the public, to collaborate on the best methods for attaining the NAAQS for the specific regions in the state. Even though the FCAA allows states to develop their own programs, this flexibility does not relieve a state from developing a program that meets the requirements of 42 USC, §7410. States are not free to ignore the requirements of 42 USC, §7410, and must develop programs to assure that their contributions to nonattainment areas are reduced so that these areas can be brought into attainment on schedule. The adopted rulemaking will revise rules in Chapter 115, Subchapter B, Division 1, to update RACT requirements for CTG storage tanks and for non-CTG major source crude oil and condensate storage tanks in the HGB area.

The requirement to provide a fiscal analysis of adopted regulations in the Texas Government Code was amended by Senate Bill (SB) 633 during the 75th Legislature, 1997. The intent of SB 633 was to require agencies to conduct a regulatory impact analysis of extraordinary rules. These are identified in the statutory language as major environmental rules that will have a material adverse impact and will exceed a requirement of state law, federal law, or a delegated federal program, or are adopted solely under the general powers of the agency. With the understanding that this requirement would seldom apply, the commission provided a cost estimate for SB 633 concluding that "based on an assessment of rules adopted by the agency in the past, it is not anticipated that the bill will have significant fiscal implications for the agency due to its limited application." The commission also noted that the number of rules that would require assessment under the provisions of the bill was not large. This conclusion was based, in part, on the criteria set forth in the bill that exempted adopted rules from the full analysis unless the rule was a major environmental rule that exceeds a federal law.

As discussed earlier in this preamble, the FCAA does not always require specific programs, methods, or reductions in order to meet the NAAQS; thus, states must develop programs for each area contributing to nonattainment to help ensure that those areas will meet the attainment deadlines. Because of the ongoing need to address nonattainment issues, and to meet the requirements of 42 USC, §7410, the commission routinely proposes and adopts SIP rules. The legislature is presumed to understand this federal scheme. If each rule adopted for inclusion in the SIP was considered to be a major environmental rule that exceeds federal law, then every SIP rule would require the full regulatory impact analysis contemplated by SB 633. This conclusion is inconsistent with the conclusions reached by the commission in its cost estimate and by the Legislative Budget Board (LBB) in its fiscal notes. Since the legislature is presumed to understand the fiscal impacts of the bills it passes, and that presumption is based on information provided by state agencies and the LBB, the commission believes that the intent of SB 633 was only to require the full regulatory impact analysis for rules that are extraordinary in nature. While the SIP rules will have a broad impact, the impact is no greater than is necessary or appropriate to meet the requirements of the FCAA. For these reasons, rules adopted for inclusion in the SIP fall under the exception in Texas Government Code, §2001.0225(a) because they are required by federal law.

The commission has consistently applied this construction to its rules since this statute was enacted in 1997. Since that time, the legislature has revised the Texas Government Code but left this provision substantially unamended. It is presumed that "when an agency interpretation is in effect at the time the legislature amends the laws without making substantial change in the statute, the legislature is deemed to have accepted the agency's interpretation." Central Power & Light Co. v. Sharp, 919 S.W.2d 485, 489 (Tex. App. Austin 1995), writ denied with per curiam opinion respecting another issue, 960 S.W.2d 617 (Tex. 1997); Bullock v. Marathon Oil Co., 798 S.W.2d 353, 357 (Tex. App. Austin 1990, no writ). Cf. Humble Oil & Refining Co. v. Calvert, 414 S.W.2d 172 (Tex. 1967); Dudney v. State Farm Mut. Auto Ins. Co., 9 S.W.3d 884, 893 (Tex. App. Austin 2000); Southwestern Life Ins. Co. v. Montemayor, 24 S.W.3d 581 (Tex. App. Austin 2000, pet. denied); and Coastal Indust. Water Auth. v. Trinity Portland Cement Div., 563 S.W.2d 916 (Tex. 1978).

The commission's interpretation of the regulatory impact analysis requirements is also supported by a change made to the Texas Administrative Procedure Act (APA) by the legislature in 1999. In an attempt to limit the number of rule challenges based upon APA requirements, the legislature clarified that state agencies are required to meet these sections of the APA against the standard of "substantial compliance." The legislature specifically identified Texas Government Code, §2001.0225, as falling under this standard. The commission has substantially complied with the requirements of Texas Government Code, §2001.0225.

The specific intent of the adopted rulemaking is to update the RACT requirements for CTG storage tanks and for non-CTG major source crude oil and condensate storage tanks in the HGB area as required by the FCAA. The adopted rulemaking does not exceed a standard set by federal law or exceed an express requirement of state law. No contract or delegation agreement covers the topic that is the subject of this adopted rulemaking. Therefore, this adopted rulemaking is not subject to the regulatory analysis provisions of Texas Government Code, §2001.0225(b) because it does not meet the definition of a "major environmental rule"; it also does not meet any of the four applicability criteria for a major environmental rule.

The commission invited public comment regarding the Draft Regulatory Impact Analysis Determination during the public comment period. No comments were received regarding the Draft Regulatory Impact Analysis Determination.

Takings Impact Assessment

The commission evaluated the adopted rulemaking and performed an assessment of whether Texas Government Code, Chapter 2007, is applicable. For nonattainment areas classified as moderate and above, FCAA, §172(b)(1) and §182(b)(2) requires the state to submit a SIP revision that implements RACT for all CTG emission source categories and for major stationary sources of VOC. The specific purpose of the adopted rulemaking is to revise rules in Chapter 115, Subchapter B, Division 1, to update the RACT requirements for CTG storage tanks and for non-CTG major source crude oil and condensate storage tanks in the HGB moderate eight-hour 2008 ozone nonattainment area. Texas Government Code, §2007.003(b)(4), provides that Texas Government Code, Chapter 2007 does not apply to this adopted rulemaking because it is an action reasonably taken to fulfill an obligation mandated by federal law.

In addition, the commission's assessment indicates that Texas Government Code, Chapter 2007 does not apply to these adopted rules because this is an action that is taken in response to a real and substantial threat to public health and safety; that is designed to significantly advance the health and safety purpose; and that does not impose a greater burden than is necessary to achieve the health and safety purpose. Thus, this action is exempt under Texas Government Code, §2007.003(b)(13). The adopted rules fulfill the FCAA requirement to implement RACT in nonattainment areas. These revisions will result in more stringent VOC emission specifications in the HGB ozone nonattainment area, which may contribute to the timely attainment of the ozone standard and reduced public exposure to VOCs. Consequently, the adopted rulemaking meets the exemption criteria in Texas Government Code, §2007.003(b)(4) and (13). For these reasons, Texas Government Code, Chapter 2007 does not apply to this adopted rulemaking.

Consistency with the Coastal Management Program

The commission reviewed the adopted rulemaking and found the adoption is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2) (or 31 TAC §505.11(b)(4), whichever is applicable) relating to rules subject to the Coastal Management Program (CMP), and will, therefore, require that goals and policies of the CMP be considered during the rulemaking process.

The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Advisory Committee and determined that the rulemaking is editorial in nature and will have no substantive effect on commission actions subject to the CMP and is, therefore, consistent with CMP goals and policies.

The commission invited public comment regarding the consistency with the CMP during the public comment period. No comments were received regarding the CMP.

Effect on Sites Subject to the Federal Operating Permits Program

Chapter 115 is an applicable requirement under 30 TAC Chapter 122, Federal Operating Permits Program. Owners or operators subject to the federal operating permits program must, consistent with the revision process in Chapter 122, upon the effective date of the rulemaking, revise their operating permit to include the adopted Chapter 115 requirements.

Public Comment

The commission held a public hearing on October 24, 2016 at 2:00 p.m. at the Houston office of the Texas Department of Transportation. The comment period closed on October 24, 2016. The commission received written comments from Texas Industry Project (TIP) and Texas Oil and Gas Association (TXOGA) regarding this rulemaking.

Response to Comments

Comment

TXOGA requested that the commission create an exemption for crude oil and condensate storage tanks with a throughput of 10 barrels per day or less from the submerged fill requirements in §115.112(e)(1). TXOGA recognizes that the submerged fill requirements in §115.112(e) are currently in effect but is not aware of any information or data documenting significant emissions reductions for submerged fill installed in small production tanks and could not identify a RACT analysis that has ever been conducted for this type of control. The commenter stated these requirements would not meet the economic feasibility consideration to be RACT because the costs of retrofitting existing tanks are estimated to be between $7,000 to $12,000 per tank and little to no VOC emissions reductions are achieved. TXOGA added that emptying and degassing a tank prior to retrofitting releases significant VOC emissions.

Response

The suggested rule change is beyond the scope of this rulemaking. The commission did not propose to change the submerged fill requirements as required in Table 2 of §115.112(e)(1), for low-throughput or low-emission tanks. Interested parties would not have had the opportunity to comment on the suggested change. The commission makes no changes in response to this comment.

Comment

TIP and TXOGA requested that the language in §115.112(e)(5) - (7) be clarified to reflect that these control requirements apply to fixed roof storage tanks. TIP commented that this clarification is evident through the explicit use of fixed roof storage tanks in the inspection and repair requirements of §115.114(a)(5) referring to the control requirements in §115.112(e). TIP further commented that requiring vapor collection for floating roof tanks would not be RACT because the design of these tank types does not permit collection of vapors in a reasonably controllable way.

Response

The requirements in §115.112(e)(5) - (7), as well as §115.112(e)(4), are intended to apply to fixed roof storage tanks only. The commission agrees with the commenter that the rule needs clarification to specify which storage tank types are covered under certain control requirements. The control requirements specific to floating roof storage tanks are already addressed in §115.112(e)(2). The control requirements in §115.112(e)(3) apply to floating and fixed roof storage tanks. The control requirements in §115.112(e)(4) - (7) apply to fixed roof storage tanks and were not intended to cover floating roof tanks. In response to these comments, the commission adds "fixed roof" and "fixed roof storage" to adopted paragraphs (4) - (7) where necessary to clarify that these paragraphs apply to fixed roof storage tanks and fixed roof storage tank batteries.

Comment

TXOGA requested clarification on how to confirm that carbon beds used as a control device for caustic tanks meet the current 90% and proposed 95% control efficiency requirements. TXOGA stated that it currently follows guidance that instructs it to use Method 21 as allowed by a permitting rule as well as testing for "breakthrough" prescribed under §115.115(a)(3)(A) and (B), but that it is not aware of any other source that provides the carbon canisters that meet the control efficiency percentages imposed by the VOC storage tank rules.

Response

The commission has previously approved two methods for operators using a carbon adsorber or carbon adsorption system in §115.115(a)(3)(A) and (B). Operators using the method described in §115.115(a)(3)(A) measure the breakthrough of a carbon adsorption system that regenerates carbon directly and must make sure that any breakthrough is measured at 100 ppm or less. If the breakthrough is measured at or below 100 ppm for any source that has an input concentration of 2,000 ppm or greater, the carbon adsorption system is achieving at least 95% emission control. The commission anticipates that all streams emanating from storage tanks have VOC concentrations well above 2,000 ppm.

Operators using the method described in §115.115(a)(3)(B) for carbon adsorption systems that do not regenerate carbon directly are required to switch the carbon receiving the VOC stream to fresh carbon in all possible operating scenarios before the system reaches its adsorption capacity, with the carbon capturing well over 95% of the VOCs in the input stream. The commission makes no change in response to this comment.

Statutory Authority

The amendments are adopted under Texas Water Code (TWC), §5.102, concerning General Powers, that provides the commission with the general powers to carry out its duties under the TWC; TWC, §5.103, concerning Rules, that authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC; TWC, §5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the commission; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, that authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amendments are also adopted under THSC, §382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; THSC, §382.011, concerning General Powers and Duties, that authorizes the commission to control the quality of the state's air; and THSC, §382.012, concerning State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air. The amendments are also adopted under THSC, §382.016, concerning Monitoring Requirements; Examination of Records, that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions. The amendments are also adopted under Federal Clean Air Act (FCAA), 42 United States Code (USC), §§7401, et seq., which requires states to submit state implementation plan revisions that specify the manner in which the National Ambient Air Quality Standards will be achieved and maintained within each air quality control region of the state.

The amended sections implement THSC, §§382.002, 382.011, 382.012, 382.016, and 382.017; and FCAA, 42 USC, §§7401, et seq.

§115.112.Control Requirements.

(a) The following requirements apply in the Beaumont-Port Arthur, Dallas-Fort Worth, and El Paso areas, as defined in §115.10 of this title (relating to Definitions). The control requirements in this subsection no longer apply in the Dallas-Fort Worth area beginning March 1, 2013.

(1) No person shall place, store, or hold in any storage tank any volatile organic compounds (VOC) unless the storage tank is capable of maintaining working pressure sufficient at all times to prevent any vapor or gas loss to the atmosphere or is in compliance with the control requirements specified in Table I(a) of this paragraph for VOC other than crude oil and condensate or Table II(a) of this paragraph for crude oil and condensate.

Figure: 30 TAC §115.112(a)(1) (No change.)

(2) For an external floating roof or internal floating roof storage tank subject to the provisions of paragraph (1) of this subsection, the following requirements apply.

(A) All openings in an internal floating roof or external floating roof except for automatic bleeder vents (vacuum breaker vents) and rim space vents must provide a projection below the liquid surface or be equipped with a cover, seal, or lid. Any cover, seal, or lid must be in a closed (i.e., no visible gap) position at all times except when the device is in actual use.

(B) Automatic bleeder vents (vacuum breaker vents) must be closed at all times except when the roof is being floated off or landed on the roof leg supports.

(C) Rim vents, if provided, must be set to open only when the roof is being floated off the roof leg supports or at the manufacturer's recommended setting.

(D) Any roof drain that empties into the stored liquid must be equipped with a slotted membrane fabric cover that covers at least 90% of the area of the opening.

(E) There must be no visible holes, tears, or other openings in any seal or seal fabric.

(F) For an external floating roof storage tank, secondary seals must be the rim-mounted type (the seal must be continuous from the floating roof to the tank wall). The accumulated area of gaps that exceed 1/8 inch in width between the secondary seal and storage tank wall may not be greater than 1.0 square inch per foot of tank diameter.

(3) Vapor control systems, as defined in §115.10 of this title, used as a control device on any storage tank must maintain a minimum control efficiency of 90%. If a flare is used, it must be designed and operated in accordance with 40 Code of Federal Regulations §60.18(b) - (f) (as amended through December 22, 2008 (73 FR 78209)) and be lit at all times when VOC vapors are routed to the flare.

(b) The following requirements apply in Gregg, Nueces, and Victoria Counties.

(1) No person shall place, store, or hold in any storage tank any VOC, unless the storage tank is capable of maintaining working pressure sufficient at all times to prevent any vapor or gas loss to the atmosphere or is in compliance with the control requirements specified in Table I(a) in subsection (a)(1) of this section for VOC other than crude oil and condensate or Table II(a) in subsection (a)(1) of this section for crude oil and condensate. If a flare is used as a vapor recovery system, as defined in §115.10 of this title, it must be designed and operated in accordance with 40 Code of Federal Regulations §60.18(b) - (f) (as amended through December 22, 2008 (73 FR 78209)) and be lit at all times when VOC vapors are routed to the flare.

(2) For an external floating roof or internal floating roof storage tank subject to the provisions of paragraph (1) of this subsection, the following requirements apply.

(A) All openings in an internal floating roof or external floating roof, except for automatic bleeder vents (vacuum breaker vents) and rim space vents, must provide a projection below the liquid surface or be equipped with a cover, seal, or lid. Any cover, seal, or lid must be in a closed (i.e., no visible gap) position at all times, except when the device is in actual use.

(B) Automatic bleeder vents (vacuum breaker vents) must be closed at all times except when the roof is being floated off or landed on the roof leg supports.

(C) Rim vents, if provided, must be set to open only when the roof is being floated off the roof leg supports or at the manufacturer's recommended setting.

(D) Any roof drain that empties into the stored liquid must be equipped with a slotted membrane fabric cover that covers at least 90% of the area of the opening.

(E) There must be no visible holes, tears, or other openings in any seal or seal fabric.

(F) For an external floating roof storage tank, secondary seals must be the rim-mounted type (the seal shall be continuous from the floating roof to the tank wall). The accumulated area of gaps that exceed 1/8 inch in width between the secondary seal and tank wall may not be greater than 1.0 square inch per foot of tank diameter.

(c) The following requirements apply in Aransas, Bexar, Calhoun, Matagorda, San Patricio, and Travis Counties.

(1) No person may place, store, or hold in any storage tank any VOC, other than crude oil or condensate, unless the storage tank is capable of maintaining working pressure sufficient at all times to prevent any vapor or gas loss to the atmosphere or is in compliance with the control requirements specified in Table I(b) of this paragraph for VOC other than crude oil and condensate.

Figure: 30 TAC §115.112(c)(1) (No change.)

(2) For an external floating roof or internal floating roof storage tank subject to the provisions of paragraph (1) of this subsection, the following requirements apply.

(A) There must be no visible holes, tears, or other openings in any seal or seal fabric.

(B) All tank gauging and sampling devices must be vapor-tight except when gauging and sampling is taking place.

(3) No person in Matagorda or San Patricio Counties shall place, store, or hold crude oil or condensate in any storage tank unless the storage tank is a pressure tank capable of maintaining working pressures sufficient at all times to prevent vapor or gas loss to the atmosphere or is equipped with one of the following control devices, properly maintained and operated:

(A) an internal floating roof or external floating roof, as defined in §115.10 of this title. These control devices will not be allowed if the VOC has a true vapor pressure of 11.0 pounds per square inch absolute (psia) or greater. All tank-gauging and tank-sampling devices must be vapor-tight, except when gauging or sampling is taking place; or

(B) a vapor control system as defined in §115.10 of this title.

(d) The following requirements apply in the Houston-Galveston-Brazoria area, as defined in §115.10 of this title. The requirements in this subsection no longer apply beginning March 1, 2013.

(1) No person shall place, store, or hold in any storage tank any VOC unless the storage tank is capable of maintaining working pressure sufficient at all times to prevent any vapor or gas loss to the atmosphere or is in compliance with the control requirements specified in either Table I(a) of subsection (a)(1) of this section for VOC other than crude oil and condensate or Table II(a) of subsection (a)(1) of this section for crude oil and condensate.

(2) For an external floating roof or internal floating roof storage tank subject to the provisions of paragraph (1) of this subsection, the following requirements apply.

(A) All openings in an internal floating roof or external floating roof as defined in §115.10 of this title except for automatic bleeder vents (vacuum breaker vents), and rim space vents must provide a projection below the liquid surface. All openings in an internal floating roof or external floating roof except for automatic bleeder vents (vacuum breaker vents), rim space vents, leg sleeves, and roof drains must be equipped with a deck cover. The deck cover must be equipped with a gasket in good operating condition between the cover and the deck. The deck cover must be closed (i.e., no gap of more than 1/8 inch) at all times, except when the cover must be open for access.

(B) Automatic bleeder vents (vacuum breaker vents) and rim space vents must be equipped with a gasketed lid, pallet, flapper, or other closure device and must be closed (i.e., no gap of more than 1/8 inch) at all times except when required to be open to relieve excess pressure or vacuum in accordance with the manufacturer's design.

(C) Each opening into the internal floating roof for a fixed roof support column may be equipped with a flexible fabric sleeve seal instead of a deck cover.

(D) Any external floating roof drain that empties into the stored liquid must be equipped with a slotted membrane fabric cover that covers at least 90% of the area of the opening or an equivalent control that must be kept in a closed (i.e., no gap of more than 1/8 inch) position at all times except when the drain is in actual use. Stub drains on an internal floating roof storage tank are not subject to this requirement.

(E) There must be no visible holes, tears, or other openings in any seal or seal fabric.

(F) For an external floating roof storage tank, secondary seals must be the rim-mounted type (the seal must be continuous from the floating roof to the tank wall with the exception of gaps that do not exceed the following specification). The accumulated area of gaps that exceed 1/8 inch in width between the secondary seal and storage tank wall may not be greater than 1.0 square inch per foot of storage tank diameter.

(G) Each opening for a slotted guidepole in an external floating roof storage tank must be equipped with one of the following control device configurations:

(i) a pole wiper and pole float that has a seal or wiper at or above the height of the pole wiper;

(ii) a pole wiper and a pole sleeve;

(iii) an internal sleeve emission control system;

(iv) a retrofit to a solid guidepole system;

(v) a flexible enclosure system; or

(vi) a cover on an external floating roof tank.

(H) The external floating roof or internal floating roof must be floating on the liquid surface at all times except as specified in this subparagraph. The external floating roof or internal floating roof may be supported by the leg supports or other support devices, such as hangers from the fixed roof, during the initial fill or refill after the storage tank has been cleaned or as allowed under the following circumstances:

(i) when necessary for maintenance or inspection;

(ii) when necessary for supporting a change in service to an incompatible liquid;

(iii) when the storage tank has a storage capacity less than 25,000 gallons or the vapor pressure of the material stored is less than 1.5 psia;

(iv) when the vapors are routed to a control device from the time the floating roof is landed until the floating roof is within ten percent by volume of being refloated;

(v) when all VOC emissions from the tank, including emissions from roof landings, have been included in a floating roof storage tank emissions limit or cap approved under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification); or

(vi) when all VOC emissions from floating roof landings at the regulated entity, as defined in §101.1 of this title (relating to Definitions), are less than 25 tons per year.

(3) Vapor control systems, as defined in §115.10 of this title, used as a control device on any storage tank must maintain a minimum control efficiency of 90%.

(4) For a storage tank storing condensate, as defined in §101.1 of this title, prior to custody transfer, flashed gases must be routed to a vapor control system if the liquid throughput through an individual tank or the aggregate of tanks in a tank battery exceeds 1,500 barrels (63,000 gallons) per year.

(5) For a storage tank storing crude oil or condensate prior to custody transfer or at a pipeline breakout station, flashed gases must be routed to a vapor control system if the uncontrolled VOC emissions from an individual storage tank, or from the aggregate of storage tanks in a tank battery, equal or exceed 25 tons per year on a rolling 12-month basis. Uncontrolled emissions must be estimated by one of the following methods; however, if emissions determined using direct measurements or other methods approved by the executive director under subparagraph (A) or (D) of this paragraph are higher than emissions estimated using the default factors or charts in subparagraph (B) or (C) of this paragraph, the higher values must be used.

(A) The owner or operator may make direct measurements using the measuring instruments and methods specified in §115.117 of this title (relating to Approved Test Methods).

(B) The owner or operator may use a factor of 33.3 pounds of VOC per barrel (42 gallons) of condensate produced or 1.6 pounds of VOC per barrel (42 gallons) of oil produced.

(C) For crude oil storage only, the owner or operator may use the chart in Exhibit 2 of the United States Environmental Protection Agency publication Lessons Learned from Natural Gas Star Partners: Installing Vapor Recovery Units on Crude Oil Storage Tanks, October 2003, and assuming that the hydrocarbon vapors have a molecular weight of 34 pounds per pound mole and are 48% by weight VOC.

(D) Other test methods or computer simulations may be allowed if approved by the executive director.

(e) The control requirements in this subsection apply in the Houston-Galveston-Brazoria and Dallas-Fort Worth areas beginning March 1, 2013, except as specified in §115.119 of this title (relating to Compliance Schedules) and in paragraph (3) of this subsection.

(1) No person shall place, store, or hold VOC in any storage tank unless the storage tank is capable of maintaining working pressure sufficient at all times to prevent any vapor or gas loss to the atmosphere or is in compliance with the control requirements specified in Table 1 of this paragraph for VOC other than crude oil and condensate or Table 2 of this paragraph for crude oil and condensate.

Figure: 30 TAC §115.112(e)(1) (No change.)

(2) For an external floating roof or internal floating roof storage tank subject to the provisions of paragraph (1) of this subsection, the following requirements apply.

(A) All openings in an internal floating roof or external floating roof must provide a projection below the liquid surface. Automatic bleeder vents (vacuum breaker vents) and rim space vents are not subject to this requirement.

(B) All openings in an internal floating roof or external floating roof must be equipped with a deck cover. The deck cover must be equipped with a gasket in good operating condition between the cover and the deck. The deck cover must be closed (i.e., no gap of more than 1/8 inch) at all times, except when the cover must be open for access. Automatic bleeder vents (vacuum breaker vents), rim space vents, leg sleeves, and roof drains are not subject to this requirement.

(C) Automatic bleeder vents (vacuum breaker vents) and rim space vents must be equipped with a gasketed lid, pallet, flapper, or other closure device and must be closed (i.e., no gap of more than 1/8 inch) at all times except when required to be open to relieve excess pressure or vacuum in accordance with the manufacturer's design.

(D) Each opening into the internal floating roof for a fixed roof support column may be equipped with a flexible fabric sleeve seal instead of a deck cover.

(E) Any external floating roof drain that empties into the stored liquid must be equipped with a slotted membrane fabric cover that covers at least 90% of the area of the opening or an equivalent control that must be kept in a closed (i.e., no gap of more than 1/8 inch) position at all times except when the drain is in actual use. Stub drains on an internal floating roof storage tank are not subject to this requirement.

(F) There must be no visible holes, tears, or other openings in any seal or seal fabric.

(G) For an external floating roof storage tank, secondary seals must be the rim-mounted type. The seal must be continuous from the floating roof to the tank wall with the exception of gaps that do not exceed the following specification. The accumulated area of gaps that exceed 1/8 inch in width between the secondary seal and storage tank wall may not be greater than 1.0 square inch per foot of storage tank diameter.

(H) Each opening for a slotted guidepole in an external floating roof storage tank must be equipped with one of the following control device configurations:

(i) a pole wiper and pole float that has a seal or wiper at or above the height of the pole wiper;

(ii) a pole wiper and a pole sleeve;

(iii) an internal sleeve emission control system;

(iv) a retrofit to a solid guidepole system;

(v) a flexible enclosure system; or

(vi) a cover on an external floating roof tank.

(I) The external floating roof or internal floating roof must be floating on the liquid surface at all times except as allowed under the following circumstances:

(i) during the initial fill or refill after the storage tank has been cleaned;

(ii) when necessary for preventive maintenance, roof repair, primary seal inspection, or removal and installation of a secondary seal, if product is not transferred into or out of the storage tank, emissions are minimized, and the repair is completed within seven calendar days;

(iii) when necessary for supporting a change in service to an incompatible liquid;

(iv) when the storage tank has a storage capacity less than 25,000 gallons;

(v) when the vapors are routed to a control device from the time the storage tank has been emptied to the extent practical or the drain pump loses suction until the floating roof is within 10% by volume of being refloated;

(vi) when all VOC emissions from the storage tank, including emissions from floating roof landings, have been included in an emissions limit or cap approved under Chapter 116 of this title prior to March 1, 2013; or

(vii) when all VOC emissions from floating roof landings at the regulated entity are less than 25 tons per year.

(3) A control device used to comply with this subsection must meet one of the following conditions at all times when VOC vapors are routed to the device.

(A) A control device, other than a vapor recovery unit or a flare, must maintain the following minimum control efficiency:

(i) 90% in the Houston-Galveston-Brazoria area until the date specified in clause (ii) of this subparagraph;

(ii) 95% in the Houston-Galveston-Brazoria area beginning July 20, 2018; and

(iii) 95% in the Dallas-Fort Worth area.

(B) A vapor recovery unit must be designed to process all vapor generated by the maximum liquid throughput of the storage tank or the aggregate of storage tanks in a tank battery and must transfer recovered vapors to a pipe or container that is vapor-tight, as defined in §115.10 of this title.

(C) A flare must be designed and operated in accordance with 40 Code of Federal Regulations §60.18(b) - (f) (as amended through December 22, 2008 (73 FR 78209)) and be lit at all times when VOC vapors are routed to the flare.

(4) For a fixed roof storage tank storing condensate prior to custody transfer, flashed gases must be routed to a vapor control system if the condensate throughput of an individual tank or the aggregate of tanks in a tank battery exceeds:

(A) in the Houston-Galveston-Brazoria area, 1,500 barrels (63,000 gallons) per year on a rolling 12-month basis;

(B) in the Dallas-Fort Worth area except Wise County:

(i) 3,000 barrels (126,000 gallons) per year on a rolling 12-month basis; or

(ii) 15 months after the date the commission publishes notice in the Texas Register as specified in §115.119(b)(1)(C) of this title that the Dallas-Fort Worth area has been reclassified as a severe nonattainment area for the 1997 Eight-Hour Ozone National Ambient Air Quality Standard, 1,500 barrels (63,000 gallons) per year on a rolling 12-month basis; and

(C) in Wise County, 6,000 barrels (252,000 gallons) per year on a rolling 12-month basis.

(5) For a fixed roof storage tank storing crude oil or condensate prior to custody transfer or at a pipeline breakout station, flashed gases must be routed to a vapor control system if the uncontrolled VOC emissions from an individual storage tank, or from the aggregate of storage tanks in a tank battery, or from the aggregate of storage tanks at a pipeline breakout station, equal or exceed:

(A) in the Houston-Galveston-Brazoria area, 25 tons per year on a rolling 12-month basis;

(B) in the Dallas-Fort Worth area, except Wise County:

(i) 50 tons per year on a rolling 12-month basis; or

(ii) 15 months after the date the commission publishes notice in the Texas Register as specified in §115.119(b)(1)(C) of this title that the Dallas-Fort Worth area has been reclassified as a severe nonattainment area for the 1997 Eight-Hour Ozone National Ambient Air Quality Standard, 25 tons per year on a rolling 12-month basis; and

(C) in Wise County, 100 tons per year on a rolling 12-month basis.

(6) Uncontrolled emissions from a fixed roof storage tank or fixed roof storage tank battery storing crude oil or condensate prior to custody transfer or at a pipeline breakout station must be estimated by one of the following methods. However, if emissions determined using direct measurements or other methods approved by the executive director under subparagraph (A) or (B) of this paragraph are higher than emissions estimated using the default factors or charts in subparagraph (C) or (D) of this paragraph, the higher values must be used.

(A) The owner or operator may make direct measurements using the measuring instruments and methods specified in §115.117 of this title.

(B) The owner or operator may use other test methods or computer simulations approved by the executive director.

(C) The owner or operator may use a factor of 33.3 pounds of VOC per barrel (42 gallons) of condensate produced or 1.6 pounds of VOC per barrel (42 gallons) of oil produced.

(D) For crude oil storage only, the owner or operator may use the chart in Exhibit 2 of the United States Environmental Protection Agency publication Lessons Learned from Natural Gas Star Partners: Installing Vapor Recovery Units on Crude Oil Storage Tanks, October 2003, and assuming that the hydrocarbon vapors have a molecular weight of 34 pounds per pound mole and are 48% by weight VOC.

(7) Fixed roof storage tanks in the Dallas-Fort Worth area and Houston-Galveston-Brazoria area storing crude oil or condensate prior to custody transfer or at a pipeline breakout station for which the owner or operator is required by this subsection to control flashed gases must be maintained in accordance with manufacturer instructions. All openings in the fixed roof storage tank through which vapors are not routed to a vapor recovery unit or other vapor control device must be equipped with a closure device maintained according to the manufacturer's instructions, and operated according to this paragraph. If manufacturer instructions are unavailable, industry standards consistent with good engineering practice can be substituted.

(A) Each closure device must be closed at all times except when normally actuated or required to be open for temporary access or to relieve excess pressure or vacuum in accordance with the manufacturer's design and consistent with good air pollution control practices. Such opening, actuation, or use must be limited to minimize vapor loss.

(B) Each closure device must be properly sealed to minimize vapor loss when closed.

(C) Each closure device must either be latched closed or, if designed to relieve pressure, set to automatically open at a pressure that will ensure all vapors are routed to the vapor recovery unit or other vapor control device under normal operating conditions other than gauging the tank or taking a sample through an open thief hatch.

(D) No closure device may be allowed to have a VOC leak for more than 15 calendar days after the leak is found unless delay of repair is allowed. For the purposes of this subparagraph, a leak is the exuding of process gasses from a closed device based on sight, smell, or sound. If parts are unavailable, repair may be delayed. Parts must be ordered promptly and the repair must be completed within five days of receipt of required parts. Repair may be delayed until the next shutdown if the repair of the component would require a shutdown that would create more emissions than the repair would eliminate. Repair must be completed by the end of the next shutdown.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 16, 2016.

TRD-201606632

Robert Martinez

Director, Environmental Law Division

Texas Commission on Environmental Quality

Effective date: January 5, 2017

Proposal publication date: October 7, 2016

For further information, please call: (512) 239-2613