2024 Texas Lookahead

Texas is a very dynamic state with a robust variety of industries that are faced with unique and cumbersome regulatory requirements.  ALL4 closely follows the actions of the Texas Commission on Environmental Quality (TCEQ) and U.S. EPA Region VI.

ALL4’s Texas experience spans ALL4’s service areas, from air quality permitting and compliance to air dispersion modeling, environmental program management, multimedia regulatory review and auditing, continuous monitoring, and providing health and safety consulting.  Our experience covers many industries from petroleum refining, chemical and power to waste management, oil and gas, cement, glass and miscellaneous manufacturing.  If you have any questions or need assistance with evaluating your facility’s specific needs, please reach out to Meghan Skemp at mskemp@all4inc.com.

NAAQS Updates & Impacts in Texas

The U.S. Environmental Protection Agency (U.S. EPA) is expected to lower the annual National Ambient Air Quality Standard (NAAQS) for particulate matter less than 2.5 microns (PM_2.5) from 12 micrograms per cubic meter (µg/m³) to 9 or 10 µg/m³. This revision, proposed in early 2023, underwent a public comment period and is currently under review by the White House Office of Management and Budget (OMB). In early January 2024, the U.S. EPA signaled a delay in finalizing the standard, and ALL4 anticipates a final rule by mid-February 2024. ALL4 expects the following impacts:

• The lowered standard may complicate air quality dispersion modeling analyses, as existing background concentrations are close to the proposed limits, leaving limited room for new industrial projects.
• The change could lead to immediate impacts on air permit applications, requiring re-submission of PM_2.5 NAAQS air quality modeling demonstrations that are not below the final standard.
• The revision is also expected to lead to more nonattainment areas and stringent new source review (NNSR) permitting requirements by 2026, including considerations for PM_2.5 precursors like nitrogen oxides (NO_X), sulfur dioxide (SO₂), ammonia (NH₃), and volatile organic compounds (VOCs). This change aims to improve air quality but poses challenges for compliance and industrial growth.

A lower PM_2.5 standard will greatly affect permitting and compliance throughout the state of Texas, but specifically will have a greater impact on the Houston-Galveston-Brazoria (HGB) and Dallas-Fort Worth Nonattainment areas. ALL4 can assist facilities with navigating air permitting, modeling, and monitoring.

For more information check out ALL4’s PM_2.5 NAAQS Resource webpage or contact Dan Dix at ddix@all4inc.com.

Texas Chemical Industry Updates

Are you prepared? In 2024, there are significant regulatory updates coming to the Chemicals Industry. Last year, the U.S. EPA proposed revisions to several National Emission Standards for Hazardous Air Pollutants (NESHAP) and New Source Performance Standards (NSPS) applicable to facilities in the Synthetic Organic Chemical Manufacturing Industry (SOCMI) and Group I and II Polymers and Resins (P&R) Industries. The final rules are expected in March of this year with the compliance dates  quickly approaching. These revisions will affect a variety of sources (e.g., process vents, storage tanks heat exchange systems, pressure relief devices, and flares) and will require fenceline monitoring for facilities that use, produce, store, or emit the following HAPs: benzene, chloroprene, 1,3-butadiene, ethylene dichloride, ethylene oxide, and vinyl chloride. U.S. EPA is also expected to finalize revisions to risk management program (RMP) requirements and storage tank NSPS in 2024. These revisions will affect many sectors in Texas industry, in various degrees. ALL4 can help you understand the revised regulatory requirements and evaluate how these updates will affect your facility.

If you want additional information or help preparing your facility for these updates, check out our Webinar and reach out to Wes Hill at whill@all4inc.com.

Texas Water Updates

The Texas Commission of Environmental Quality’s (TCEQ) Pretreatment Stakeholders Group (PSG) discussed in their most recent meeting that the U.S. EPA is expected to publish a proposed rule to restrict the per-and polyfluoroalkyl substances (PFAS) discharges from industrial dischargers and pretreatment programs in Summer 2024 for metal finishing and electroplating. The regulated community can expect regulators to begin identifying industrial users (IUs) who manufacture, use, or otherwise process PFAS substances. The PSG discussed making IUs aware of the PFAS Final Rule and upcoming revisions to categorical standards. The plan also includes the monitoring of industrial categories where the phaseout of PFAS is projected by 2024, including pulp, paper, and paperboard, and airports. Checkout our 2024 PFAS lookahead article for more details around PFAS regulatory changes that are coming and let us know how we can help you prepare.

TPDES Phase II Municipal Separate Storm Sewer System (MS4) General Permit Updates

TCEQ is in the process of renewing the TPDES Phase II MS4 General Permit, TXR040000, which expired on January 24, 2024. However, due to a delay in the Texas NeT-MS4 System setup (the electronic system for permitting/reporting), the renewal of the Phase II MS4 General Permit has been delayed until August 2024.  TCEQ published notice of the proposed 2024 MS4 General Permit in the Texas Register, and the Houston Chronicle and the public comment period was closed on September 25, 2023.

What does this mean for the regulated community?

Small MS4 operators with active authorizations:

• Will be granted an administrative continuance of their existing authorization.
  • During this administrative continuance period, TCEQ cannot process any notice of change requests. Those will be addressed by TCEQ after August 2024.
• Must continue to implement ongoing items and compliance with their most recently approved stormwater management program until new authorizations are issued in August 2024.

New small MS4 operators will be unable to seek coverage until the Phase II MS4 General Permit is renewed in August 2024.

The proposed 2024 MS4 General Permit includes updates to definitions and rule language, mandates electronic submittal of applications and annual reports (unless obtaining a waiver), and includes increased inspection mandates, as well as many other changes. If you want additional information or help preparing your facility for these updates, please reach out to Cody Fridley at cfridley@all4inc.com.

TCEQ Water Regulatory Reviews

The TCEQ is in the process of reviewing the following regulations to determine if the need for these rules continues to exist.

• TCEQ is reviewing 30 TAC 307, Texas Surface Water Quality Standards, to determine if the need for rules within this chapter continues to exist. Changes to surface water quality standards could have broad implications to all dischargers in Texas, specifically industrial facilities could see more or less stringent discharge permit limits.
• TCEQ is reviewing regulations related to the use of reclaimed water to determine if the rule is still necessary (30 TAC 210). Reclaimed water comes primarily from municipal and industrial sources and is treated wastewater that is suitable for other uses such as irrigation, fire protection, dust control, cooling tower makeup, and many more. Changes to reclaimed water regulations could have impacts on all types of facilities and may change what types of water are eligible for reuse, what reused water may be used for, and reporting or monitoring requirements associated with reuse.
• TCEQ is reviewing 30 TAC 288, Water Conservation Plans, Drought Contingency Plans, Guidelines and Requirements, to determine if the need for the rules within this chapter continues to exist. Changes to the requirements for these plans could change aspects of their scope, which could in turn add to the burden of creating or administering the plans, and has the potential to affect municipalities, industrial facilities, agricultural facilities, wholesale water suppliers, and more.

Texas, Clean Energy, and the Inflation Reduction Act

The Inflation Reduction Act (IRA) of 2022 marks a turning point for Texas’ energy landscape, particularly regarding clean power generation and storage. While framed as an economic stimulus, the IRA contains never before seen clean energy provisions that will bring in 66.5 billion dollars of investment into the state for both clean power generation and storage as well as the jobs needed to support new clean energy infrastructure. A few examples of how these investments can be used include:

Solar

Texas’ open and uncovered land is prime real estate for solar energy generation. Extended and expanded solar investment tax credits (ITCs) significantly reduce installation costs, paving the way for large-scale solar farms, residential rooftop integrations, and addition of solar panels and photovoltaic cells to industrial facilities and plants. On top of that, manufacturers of solar components can be eligible for Advanced Manufacturing Production Credits to incentivize solar technology production within Texas.

Wind

The IRA’s extended renewable energy production tax credit (PTC) revitalizes wind energy by allowing owners and developers of wind energy facilities to claim a federal income tax credit for every KW-h of electricity sold to a third-party. This incentivizes new wind farms, potentially lowering wholesale electricity prices and enabling chemical and energy companies to blend their electricity mix through power purchase agreements (PPA).

Storage Technology

The IRA addresses the challenge of maintaining and storing energy by offering generous tax credits for construction and installation of batteries and more broadly any storage technologies that can receive, store, and deliver energy for electric or thermal use. This will incentivize the development of a more robust energy storage infrastructure in Texas, making clean energy more reliable and attractive for industry adoption.

Opportunities

The IRA presents substantial opportunities for members of the public as well as industrial facilities across Texas to leverage tax credits to invest in renewable generation, storage, and carbon capture and storage (CCS) technologies. This can not only reduce the carbon footprint of Texas but also improve the environmental image of the state by opening up new markets for clean energy generation and storage, as new technologies, technicians, and facilities will need to be built to keep up with the potential changes. If Texas is incentivized to rely on more clean energy sources, we could see a decrease in greenhouse gas emissions related to traditional energy sources across the state leading to overall better air quality. PTC incentives will help make Texas a hub for clean energy technology innovation, and production while creating jobs, attracting talent, and strengthening the state’s economic ecosystem. If you want additional information or help with assessing these substantial opportunities created by the IRA, please reach out to Andrew Hebert at ahebert@all4inc.com.