On March 31, 2010, the EPA notified the State of Texas that the federal agency will disapprove the Qualified Facilities exemption rule that the Texas CEQ had submitted for inclusion in its federally approved State Implementation Plan. The rule allows companies that have Texas issued air permits to avoid certain federal clean-air requirements including public review when they modify their plants. The EPA said it determined that this regulation did not meet several federal Clean Air Act requirements.

In September 2009, the EPA issued a Federal Register notice proposing to disapprove the TCEQ's Qualified Facilities Program and invited public comment. The agency met with TCEQ, industry representatives, and environmental groups to discuss deficiencies with air emission permits issued by the state agency to industry in the state. These discussions have led to Texas proposing new rules used to issue permits, the agency said.

Since the EPA approved Texas' major clean-air permitting plan in 1992, the state has submitted over 30 regulatory changes to the EPA approved plan. The action represents a final agency decision on only one of those regulatory changes. However, the agency said it likely to issue final decisions on two additional changes – the Flexible Permits Program and New Source Review Reform regulations – before the end of the year.