(a) The executive director shall provide written notice to each plant-wide applicability limit (PAL) permit holder that the permit is scheduled for review. Such notice must be provided by certified or registered United States mail, or an electronic method which can provide verification of receipt of the notice, no less than 12 months prior to the scheduled expiration of the PAL permit. The notice must specify the procedure for filing an application for review and the information to be included in the application. Under Texas Occupations Code, §55.002, the commission shall exempt a permit holder from any increased fee or other penalty for failure to renew the permit if the individual establishes, to the satisfaction of the commission, that the failure to renew in a timely manner occurred because the individual was on active duty in the United States Armed Forces serving outside the State of Texas.
(b) A stationary source owner or operator shall submit a timely application to the executive director to request renewal of a PAL permit. A timely application is one that is submitted at least six months prior to, but not earlier than 18 months from, the date of permit expiration. If the owner or operator of a stationary source submits a complete application to renew the PAL permit within this time period, then the permit will continue to be effective until the revised permit with the renewed PAL is issued or the PAL permit is voided.
(c) All PAL permits issued prior to the effective date of this section are subject to the renewal requirements under this section. These permits must be renewed by December 31, 2006, or within the time frame specified in subsection (b) of this section, whichever is later.
(d) The following information must be submitted with a PAL renewal application:
  (1) a proposed PAL level;
  (2) information as identified in §116.182(1) of this title (relating to Plant-wide Applicability Limit Permit Application); and
  (3) any other information the owner or operator wants the executive director to consider in determining the appropriate level for renewing the PAL.
(e) The proposed PAL level and a written rationale for the proposed PAL level are subject to the public notice requirements in §116.194 of this title (relating to Public Notice and Comment). During such public review, any person may propose a PAL level for the source for consideration by the executive director.
(f) The renewed PAL shall not exceed the potential to emit for the source and shall not be set at a level higher than the current PAL, unless the PAL is being amended in accordance with §116.192(a) of this title (relating to Amendments and Alterations) concurrently with the renewal. The executive director may adjust the renewed PAL in accordance with the following.
  (1) If the emissions level calculated in accordance with §116.188 of this title (relating to Plant-wide Applicability Limit) is equal to or greater than 80% of the PAL level, the PAL may be renewed at the same level.
  (2) If the emissions level calculated in accordance with §116.188 of this title is less than 80% of the PAL level, the executive director may set the PAL at a level that is determined to be more representative of the source's baseline actual emissions, or that is determined to be more appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the executive director in written rationale.
(g) If the compliance date for a state or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the executive director has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or federal operating permit renewal, whichever occurs first.

Source Note: The provisions of this §116.196 adopted to be effective February 1, 2006, 31 TexReg 515; amended to be effective November 22, 2018, 43 TexReg 7540