HBA-JLV H.B. 3584 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3584 By: Hochberg Environmental Regulation 3/20/2001 Introduced BACKGROUND AND PURPOSE An "upset" emission is defined as an accidental, unanticipated release of air pollution emissions. Texas Natural Resource Conservation Commission (TNRCC) rules do not set levels or limits on upset emissions. TNRCC rules allow any company, regardless of compliance history, that has experienced an upset or maintenance event to be exempt from enforcement action for exceeding permit emissions limits if it meets the 24 hour reporting rule and on-site record keeping requirements. However, the frequency of unplanned upset events raises concerns that the upsets may be part of normal operating procedures. Additionally, the lack of accurate upset emissions data makes it difficult to assess the full impact of industrial toxic emissions on surrounding air quality or on public health. House Bill 3584 sets forth provisions to monitor and regulate the amount of air pollution emissions upsets or accidents from a facility and provides for civil and administrative penalties. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking is expressly delegated to the Texas Natural Resource Conservation Commission in SECTION 1 (Section 382.0215, Health and Safety Code) of this bill. ANALYSIS House Bill 3584 amends the Health and Safety Code to set forth provisions relating to the monitoring and regulation of air pollution emissions upsets or accidents and provides civil and administrative penalties. The bill requires a facility to report to the Texas Natural Resource Conservation Commission (TNRCC) each air pollutant emission caused by a sudden, unavoidable event that results from an accident, upset, or maintenance, including a cause beyond the control of the operator of the facility. The bill provides that the report must be accompanied by a fee in an amount determined by TNRCC and a technical analysis of the emissions event. The bill requires a permitted facility to install and operate a continuous measurement and monitoring system to detect and document the occurrence of each emissions event. The bill requires a facility to perform a technical analysis of each emissions event that exceeds a threshold established by TNRCC rule and sets forth provisions regarding the analysis. The bill authorizes TNRCC by rule to require a permitted facility to acquire emissions credits to offset emissions events providing that the acquisition is consistent with the state implementation program. The bill requires TNRCC to establish by rule and include the maximum number and the maximum volume of emissions events that may occur in a year before TNRCC may take action to revoke the facility's permit or another enforcement action. The bill requires TNRCC to enforce rules concerning emissions events by means of civil or administrative penalties or by injunctive relief. The bill prohibits TNRCC from exempting excess emission from penalties or injunctive relief. The bill authorizes TNRCC to exercise enforcement discretion in consideration of the unavoidable nature of any excess emissions. The bill requires TNRCC to develop and implement policies to limit the cumulative effects of emissions from maintenance, startups, and shutdowns of facilities. The bill requires TNRCC to conduct a pilot project, designed by TNRCC, using aircraft-borne monitoring devices to detect unauthorized air pollutant emissions events from permitted facilities. The bill requires TNRCC to report to the 79th Legislature on the results of the pilot project and include with the report recommendations regarding the use of aircraft-borne monitoring devices as a component of an air pollutant emissions enforcement strategy. The pilot project is funded by a fee of $200 imposed by TNRCC on each reportable upset. The bill provides that these provisions expire on September 1, 2005. EFFECTIVE DATE September 1, 2001.