For the past 16 years the state of Texas has been issuing air quality permits to refineries and other major sources that permitted emissions caps on facilities, and allowed facilities to comply with the caps in a manner that gave them some operating flexibility while not exceeding the overall facility cap specified in the permit. This approach, also used in other states, is generally applauded by companies, regulatory agencies, and also by environmental groups. It is a win-win for everyone. So why did EPA void the program?
First, state programs operate under authority delegated by USEPA, so EPA does have the right to disapprove a state program it deems to be inadequate under the federal Clean Air Act. A major problem with the EPA action disapproving the Texas permitting program is that there are existing sources in Texas permitted under the program that are relying on the permit terms in their existing permits and have based their business decisions on an existing established permitting program that has been in place since 1995.