The answer to your question is that all emissions reported on the emissions 
inventory should be included in the calculation of emissions fees. This leads 
to another question-what emissions should be reported on the emissions 
inventory?

I discussed this issue with a TNRCC emissions inventory team leader. He 
informed me that that is no written guidance on how to report upset, 
maintenance, start-up, and shutdown emissions on the emissions inventory, and 
as a result be included in emission fees. He did indicate that at previous 
emissions inventory workshops, attendees were verbally told to only include 
"reportable" (emissions that exceed RQ) on their inventories, and not  
"recordable" (non-reportable) emissions. He also mentioned that one ton/year 
would also be an acceptable threshold for including emissions in the 
inventory.

He is aware that  upset, maintenance, start-up, and shutdown emissions are an 
important issue, now that they are included in fees. He indicated that TNRCC 
will be putting out definitive information on this issue in future emissions 
inventory workshops and guidance, in preparation for submittal of calendar 
year 2001 inventories that will be due in 2002.


 -----Original Message-----
From:  Loveless, Rick  
Sent: Monday, September 24, 2001 9:36 AM
To: Phillips, Marc
Cc: Purvis, Kyle; Campbell, Larry; June, Marilyn; Nichols, Leo; Riedel, Mike; 
Melton, Richard ; Jensen, Ruth; Kendrick, William
Subject: Re: TNRCC Emission Fees

Are emission fees paid only on reportable emissions; or are they also payable 
on recordable?


From: Marc Phillips/ENRON@enronXgate on 09/21/2001 10:53 AM
To: Kyle Purvis, Larry Campbell/ET&S/Enron@ENRON, Rick 
Loveless/ET&S/Enron@ENRON, Marilyn June/ECF/Enron@Enron
cc: Leo Nichols/ET&S/Enron@ENRON, Mike Riedel/ET&S/Enron@ENRON, Richard 
Melton/ENRON@enronXgate, Ruth Jensen/ENRON@enronXgate, William 
Kendrick/ENRON@enronXgate 

Subject: TNRCC Emission Fees

In the last session, legislation was passed in Texas that requires the 
payment of emission fees for upset, maintenance, start-up, and shutdown 
emissions. Previously these emissions were required to be included in 
emission inventories, but not when calculating the fees. Funds generated by 
the inclusion of these emissions are to be used by TNRCC for enforcement and 
monitoring activities for air quality permitting, air quality assessment and 
planning, and enforcement and compliance support. 
TNRCC is requiring that the additional fees for upset, maintenance, start-up, 
and shutdown emissions be included in the fees that are due this Fall for 
calendar year 2000 emissions. Industry groups are questioning the legality of 
TNRCC requiring the added fees for 2000 emissions since the effective date of 
the legislation was September, 2001. TNRCC is being requested to change this 
and legal action is being considered. I will keep you updated as this issue 
develops.

Marc N. Phillips
Director, Regulatory Technical Analysis
713-646-7646 (cell 713-594-6919)
marc.phillips@enron.com