(1) This section applies to combined heat and power
(CHP) units that are powered by pipeline-quality natural gas-fired
engines, including turbines. This section also authorizes any fugitive
components associated with a CHP unit authorized by this section.
(2) This section does not relieve the owner or operator
from complying with any other applicable provision of the Texas Health
and Safety Code, Texas Water Code, rules of the Texas Commission on
Environmental Quality (TCEQ), or any additional local, state, or federal
laws or regulations. Emissions that exceed the limits in this section
are not authorized and are violations.
(1) Combined heat and power (CHP) unit--A collection
of facilities and other equipment that generally consists of an electric
generating unit (EGU) and a means of extracting energy from the EGU
for useful purposes other than electricity generation, such as heating
or cooling. A CHP unit does not include facilities for generating
additional electricity after the EGU. Equipment that is not a source
of emissions itself but also extracts energy from the exhaust flow
to create electricity is not a facility and may be used in addition
to a CHP unit authorized by this section.
(2) Pipeline-quality natural gas--A naturally occurring
fluid mixture of hydrocarbons (composed predominantly of methane,
with lesser amounts of ethane, propane, nitrogen, carbon dioxide,
and trace amounts of hydrogen sulfide) produced in geological formations
beneath the Earth's surface that maintains a gaseous state at standard
atmospheric temperature and pressure under ordinary conditions, and
that is provided by a supplier through a pipeline. Pipeline-quality
natural gas must either be composed of at least 70% methane by volume,
or have a gross calorific value between 950 and 1,100 British thermal
units (BTU) per standard cubic foot. Sour gas as defined in §101.1
of this title (relating to Definitions) is not pipeline-quality natural
gas for purposes of this section.
(c) General Requirements.
(1) A CHP unit must be registered with the commission
using the appropriate PI-7 form or an approved electronic registration
method before start of construction. A CHP unit at a residential location
that generates less than 20 kilowatts(kW) of electricity does not
require registration and does not have to meet any other requirements
of this section except subsection (a) of this section and paragraph
(2) of this subsection.
(2) For a CHP unit to be eligible for authorization
under this section, the heat recovered must equal at least 20% of
the total heat energy output of the CHP unit. This requirement must
be met continuously based on any calendar week of operation except
for no more than two weeks in a rolling 52-week period if operation
of the EGU component is necessary due to lack of available electricity.
(3) No owner or operator of a CHP unit that is required
to register under this section may begin construction and/or operation
without first obtaining written approval from the executive director.
(4) Except for oxidation-reduction (three-way) catalysts
on rich-burn engines, and oxidation catalyst controls as required
by subsection (d)(3) or (4) of this section, add-on controls may not
be used to comply with the emission standards of this section.
(5) Any individual CHP unit, or any group of units
meeting paragraph (7)(B) of this subsection, may not exceed 15 megawatts
(MW) in capacity.
(6) Only one permit by rule (PBR) for Natural Gas-Fired
CHP Units per this section may be registered at a site.
(7) No more than one CHP unit may be authorized at
a site under this section, except as follows:
(A) Any units with a capacity of less than 20 kW are
not limited in number, or restricted in location. Units with a capacity
of less than 20 kW are not required to be considered when applying
subparagraphs (B) or (C) of this paragraph.
(B) Multiple units may be authorized under this PBR
if all stack emission points associated with the units are located
within a circular area with a radius of 200 feet, and the total EGU
capacity of the group is not greater than 15 MW.
(C) Multiple units may be authorized under this PBR
if all stack emission points associated with the units are separated
by a distance of at least 900 feet. Multiple groups of units meeting
the requirements of subparagraph (B) of this paragraph may be authorized
if the groups' emission points are separated by a distance of at least
(8) Notwithstanding fuel restrictions elsewhere in
this section, during an emergency, this PBR authorizes the use of
propane, liquefied petroleum gas, gasoline, diesel, or fuel oil as
an approved fuel for not more than 720 hours in any 365-day period.
This PBR also authorizes brief use of these emergency fuels as needed
for purposes of maintenance or testing, for not more than two hours
in any seven-day period.
(d) Emission Standards and Control Requirements.
(1) Notwithstanding paragraphs (2), (3), or (4) of
this subsection, a CHP unit with a capacity less than 20 kW is not
subject to a nitrogen oxides (NOX ) or
carbon monoxide (CO) emission standard, and is not subject to the
requirement for an oxidation catalyst control device.
(2) A CHP unit or any combination of units with a total
capacity greater than or equal to 20 kW, but less than or equal to
8 MW, must meet the following emission standards: 1.0 pound of NOX per megawatt-hour (lb NOX /MWh);
and 9.0 lb CO/MWh.
(3) Except as provided in paragraph (4) of this subsection,
a CHP unit or any combination of units with a total capacity greater
than 8 MW must meet the following emission standards: 0.7 lb NOX /MWh; and 9.0 lb CO/MWh. A CHP unit or units
under this paragraph must also be equipped with an oxidation catalyst
control device that maintains a minimum of 70% control of volatile
organic compounds (VOC) in the CHP unit exhaust stream.
(4) Any combination of CHP units with a total capacity
greater than 8 MW that are at least 900 feet apart from one another
must meet the following emission standards and control requirements.
For the purposes of this paragraph, any group of units under subsection
(c)(7)(B) of this section is considered to be one unit when determining
whether subparagraph (A) or (B) of this paragraph applies.
(A) CHP units with a capacity less than or equal to
8 MW: 1.0 pound of NOX per megawatt-hour
(lb NOX /MWh); and 9.0 lb CO/MWh.
(B) CHP units with a capacity greater than 8 MW: 0.7
lb NOX /MWh; and 9.0 lb CO/MWh. A CHP
unit under this subparagraph must also be equipped with an oxidation
catalyst control device that maintains a minimum of 70% control of
VOC in the CHP unit exhaust stream.
(5) Compliance with the NOX standards
above may be achieved by taking credit for the heat recovered from
the combustion unit. Credit will be at the rate of 1.0 MWh for each
3.4 million BTU of heat recovered. In order to claim this credit for
CHP for units not sold and certified as an integrated package by the
manufacturer, the owner or operator must provide as part of the application
documentation of the heat recovered, electric output, efficiency of
the generator alone, efficiency of the generator including CHP, and
the use for the non-electric output.
(e) Monitoring and Testing. CHP units authorized under
this section with an electric generating capacity greater than or
equal to 20 kW must meet the following requirements:
(1) Internal combustion engine-based CHP units (excluding
(A) The owner or operator shall initially analyze the
emissions from the CHP unit using a portable analyzer no later than
180 calendar days after startup.
(B) After the initial testing specified by subparagraph
(A) of this paragraph, the owner or operator shall conduct ongoing
monitoring using a portable analyzer, once in the first half of each
calendar year and once in the second half of each calendar year, with
at least two months between tests. When a CHP unit did not operate
for more than 1,000 hours in that half of the year, this test is not
(C) The portable analyzer must be operated at minimum
in accordance with the manufacturer's instructions. A copy of the
manufacturer's instructions shall be made available upon request.
The NOX and CO emissions must be converted
into units of lb/MWh.
(2) Internal combustion engine-based CHP units and
turbines. If the CHP unit is not certified to meet the emission standards
of subsection (d) of this section by the manufacturer according to
a United States Environmental Protection Agency (EPA) testing protocol,
the unit must be tested within 90 days of startup for NOX and CO according to appropriate EPA reference
methods, California Air Resources Board methods, or equivalent alternative
testing methods approved by the executive director and in accordance
with the appropriate procedures of the TCEQ Sampling Procedures Manual.
Tests must consist of three runs with a minimum of 30 minutes for
each run or longer if required by the reference method. All engine-
and turbine-based CHP units designed to generate more than 375 kW
must be retested by the above method after every 16,000 hours of operation,
regardless of certification.
(3) All CHP units which are required by subsection
(d)(3) or (4) of this section to have an oxidation catalyst control
device shall be tested to verify compliance with the required 70%
VOC control efficiency within 90 days of startup. In lieu of the above
test, the 70% VOC control requirement shall be satisfied if the unit
is tested for gaseous organic compounds and the reduction is at least
90%. The testing shall be conducted using EPA reference methods or
equivalent alternative testing methods approved by the executive director
and in accordance with the appropriate procedures of the TCEQ Sampling
Procedures Manual. All units required to be equipped with an oxidation
catalyst control device must also be retested after every 16,000 hours
(4) Except for rich-burn engines equipped with oxidation-reduction
(three-way) catalysts, and units required to be equipped with an oxidation
catalyst under subsection (d)(3) or (4) of this section, the uncontrolled
source must demonstrate compliance with the emission standards in
subsection (d) of this section.
(f) Recordkeeping. In addition to the minimum records
required by §106.8 of this title (relating to Recordkeeping),
the owner or operator must keep the following records:
(1) For the life of the CHP unit, the registration
application and any additional representations made during the approval
process to obtain the registration; and
(2) The owner or operator must keep the following records
for at least two years and make them available to the TCEQ or any
local pollution control program with jurisdiction upon request:
(A) A record of every one-week period of operation
where the CHP unit did not comply with subsection (c)(2) of this section;
(B) All monitoring and testing data generated in compliance
with subsection (e) of this section and in a format that shows the
emission standards have been met;
(C) Records of CHP unit operation sufficient to demonstrate
compliance with any applicable hour-based requirements of subsection
(e) of this section;
(D) Records of maintenance described in subsection
(g)(2) of this section; and
(E) Records of the number of hours that any emergency
fuel is used under subsection (c)(8) of this section, and the reason
why operating on an emergency fuel is necessary.
(g) Planned Maintenance, Startup, and Shutdown.
(1) This PBR authorizes all emissions from planned
startup and shutdown activities associated with facilities that are
authorized by this section.
(2) This PBR authorizes emissions from the following
planned maintenance activities associated with facilities authorized
by this section: routine maintenance including, but not limited to,
filter changes, oxygen sensor replacements, overhauls, lubricant changes,
spark plug changes, and emission control system maintenance.