HBA-SEP H.B. 356 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 356 By: Zbranek Environmental Regulation 3/25/2001 Introduced BACKGROUND AND PURPOSE The Texas Clean Air Act exempts from state air permitting requirements sources that were in existence or under construction when the Act was passed in 1971. Such a facility, referred to as a grandfathered facility or source, is not required to obtain a permit for air emissions unless the facility is modified. The 76th Legislature created the Voluntary Emissions Reduction Permit program to encourage grandfathered facilities and sources to obtain a permit and reduce air emissions. However, the Texas Natural Resource Conservation Commission's report confirms that only 74 tons of the 898,025 tons of the 1997 baseline inventory of grandfathered emissions have received a permit. House Bill 356 repeals the exemption for grandfathered facilities. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 356 amends the Health and Safety and the Utilities codes to repeal the exemption for certain sources of air contaminant emissions from preconstruction permit requirements. The bill authorizes the Texas Natural Resource Conservation Commission (TNRCC) to grant a voluntary emissions reduction permit only if the permit application was filed by September 1, 2001. The bill amends the Utilities Code to remove the provision allowing TNRCC, upon finding good cause for an extension, to allow the operation of a facility that does not obtain a permit for the emission of air contaminates as required by the emissions reduction provisions relating to grandfathered facilities. EFFECTIVE DATE September 1, 2001.