Any new or modified pilot plant is permitted by rule, provided the following conditions of this section are met.
  (1) For purposes of this section, a pilot plant is defined as a facility that is constructed and operated only for one of the following purposes:
    (A) testing the manufacturing or marketing potential of a proposed product; or
    (B) defining the design of a larger plant; or
    (C) studying the behavior of an existing plant through modeling in the pilot plant.
  (2) The sum of product, co-product, and by-product production design capacity from the pilot plant shall not exceed five million pounds per year.
  (3) Operation of the pilot plant for purposes of testing market potential of a product, co-product, or by- product may not occur beyond the end of the fifth calendar year from the year of initial production (year 1) of the specific product, co-product, or by-product, unless a permit is obtained under §116.110 of this title (relating to Applicability). This five-year limit on pilot plant activity applies to equipment devoted to development of one specific product or process; therefore, that equipment can be subsequently used for development of other process(es) or product(s), setting a new time limit for its use.
  (4) The pilot plant shall be located at least 500 feet from any recreational area or residence or other structure not occupied or used solely by the owner of the facility or the owner of the property upon which the facility is located.
  (5) New or increased emissions shall not exceed 6.0 pounds per hour (lb/hr) and ten tons per year in total (including fugitives) and shall not exceed 1.0 lb/hr at any single stack (excluding fugitives). In addition, total new or increased emissions of each specific chemical shall not exceed the most stringent applicable requirement of the following:
    (A) the chemical-specific emission limits determined by §106.262(3) of this title (relating to Facilities (Emission and Distance Limitations));
    (B) the chemical-specific emission limits determined by §106.261(4) of this title (relating to Facilities (Emission Limitations)); or
    (C) 6.0 lb/hr for any simple asphyxiant as defined by the American Conference of Governmental Industrial Hygienists.

Source Note: The provisions of this §106.124 adopted to be effective March 14, 1997, 22 TexReg 2439; amended to be effective September 4, 2000, 25 TexReg 8653