(a) This section applies to applications for new construction or modification of facilities or emissions units located in a designated nonattainment area for an air contaminant other than ozone. The owner or operator of a proposed new or modified facility or emissions unit that will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of subsection (c)(1) - (4) of this section. Table I located in the definition of major modification in §116.12 of this title (relating to Nonattainment and Prevention of Significant Deterioration Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source.
(b) The de minimis threshold test (netting) is required for all modifications to existing major sources of federally regulated new source review pollutants, unless the proposed project emissions increases are less than the major modification threshold for the pollutant identified in Table I located in the definition of major modification in §116.12 of this title.
(c) In applying the de minimis threshold test, if the net emissions increases are greater than the major modification levels stated in Table I located in the definition of major modification in §116.12 of this title, the following requirements apply.
  (1) The proposed facility or emissions unit shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility or emissions unit is a new major source or major modification. LAER shall be applied to each new facility or emissions unit and to each existing facility or emissions unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit.
  (2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state shall be in compliance or on a schedule for compliance with all applicable state and federal emission limits and standards.
  (3) At the time the new or modified facility or emissions unit or facilities or emissions units commence operation, the emission increases from the new or modified facility or emissions unit or facilities or emissions units shall be offset. The proposed facility or emissions unit shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I located in the definition of major modification in §116.12 of this title.
  (4) In accordance with the Federal Clean Air Act, the permit application shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location.

Source Note: The provisions of this §116.151 adopted to be effective September 13, 1993, 18 TexReg 5746; amended to be effective April 7, 1998, 23 TexReg 3515; amended to be effective February 1, 2006, 31 TexReg 515; amended to be effective August 16, 2012, 37 TexReg 6049; amended to be effective July 1, 2021, 46 TexReg 3924