North Carolina Manufacturers Alliance WorkshopMarch 19 & 24, 2015

Joelle BurlesonPlanning Section, Rules Development Branch

Division of Air Quality

Air Quality Rules Update

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Overview of Topics• Permit Exemptions• NC Air Toxics Rules Update• Process for Legislatively Required Review/Reissue of All

Air Quality Rules• GHG Regulations, Outcome of Court Ruling and Effect on

TV facilities• Mercury and Air Toxics Standards (MATS) – EGU updates• Cross State Air Pollution Rule (CSAPR) and Clean Air

Interstate Rule (CAIR) Implementation• National Ambient Air Quality Standards (NAAQS) and

Attainment Status Update

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Permit Exemptions Rule Revisions Impetus: Frustration with 02Q .0102

Difficult to understand and implement Internal Workgroup Formed

Regional and Central Office Permitting staff representatives, Rules staff, and Division of Environmental Assistance and Customer Service (DEACS) representative

Goal: Streamline, improve the structure, update, make it easier to use for all

In Parallel, Division “fresh look” at non-Title V Permitting Level of effort relative to low emissions; Different

approach with same compliance rates and air quality?; Consideration of emissions, compliance, regulatory framework, complexity, and staff experience

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Permit Exemptions Rule Revisions Permit Exemptions Rule Revisions web page: http

://www.ncair.org/rules/Exemptions/ Markup version of 02Q .0102 changes Table of Proposed Changes Draft 02Q .0904 Concrete Manufacturing Facilities Presentation

Permit by Rule drafts containing conditions similar to those in small or general permits for: grain elevators yarn spinners peak shavers (amendment to 02Q .0903) to be

added as become available

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Permit Exemptions Rule Revisions• Stakeholder Meeting held November 6, 2014• Participation from environmental groups,

regulated community, local programs• Feedback was requested• Agency very recently received comments and

suggestions regarding alternative tiered threshold approaches to further simplify the permitting process

• Evaluating comments; further discussion needed

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NC Air Toxics Rules• Session Law 2012-91Requires DAQ report to

the ERC on its implementation• December 1, 2012, 2013 and 2014

• Includes an analysis of air toxic emission changes and a summary of results of the Division’s analysis of air quality impacts.

• Final Report submitted December 2014

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NC Air Toxics Rules• Final Section 4 Report Findings

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Toxic air emissions below thresholds for

further analysis

Modeling done previously for

the facility used to determine compliance

Facility voluntarily

provided air toxics modeling

showing compliance

Air toxics modeling over

AAL resulting in Director’s Call

Agency performed modeling

showing no unacceptable

risk.

12 27 11 0 5

Table 1: Analysis of air toxics permit applications: June 28, 2012 through September 19, 2014.

NC Air ToxicsFigure 1. Long-term air toxic emissions changes 1993-2013

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NC Air Toxics Rules• Toxics Clerical Revision• Place Toxics Permitting Emission Rates (TPERs)

for non-obstructed vertically oriented stacks in 02Q .0711(b) for 3 pollutants in appropriate columns• ethylene glycol monoethyl ether - 2.0 lb/hr acute

systemic• methyl isobutyl ketone - 31.59 lb/hr acute irritant• toluene - 197.96 lb/day chronic toxicants

• Hearing Officer’s Report and revised rule approved at March 2015 EMC

• Tentatively effective May 1, 20159

Periodic Review and Expiration of Existing Rules per Regulatory Reform Act (S.L. 2013-413)3 Steps

Step 1 [G.S. 150B-21.3A(c)(1)]- Agency determination Initial determination of classification 60 day public comment period

Step 2 [G.S. 150B-21.3A(c)(2)]- Rules Review Commission (RRC) review Reviews agency’s report Makes final determination regarding classification

Step 3 [G.S. 150B-21.3A(c)(3)]- Administrative Procedure Oversight (APO) Committee consultation 60 day opportunity to review final determination before

it becomes effective10

Step 1-Agency Determination

Initial Classification as:

Necessary with substantive public interest

Necessary without substantive public interest

Unnecessary

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Step 1 Continued Public Comment

For at least 60 days Comments on determination and rules Comments submitted on the web (http

://rulesreview.ncdenr.gov/)

Agency reviews and responds in report Agency submits report to RRC

Initial determination All comments received Response to comments

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DENR Rules Review Public Comment Website

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Steps 2 and 3Step 2 - RRC review

Reviews report and public comments to determine if rule has been classified correctly

Submits final determination report to APO Committee

Step 3 - APO consultationFinal determination does not become effective

until APO consultation concludesHave 60 days to review

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Effect of Final ClassificationUnnecessary

Rule will expire and be removed from code following APO finalization of report

Necessary without substantive public interestRule will remain in effect without further

actionNecessary with substantive public interest

Rule shall be readopted as if it was new in accordance with APA

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Air Quality Rules353 Air Quality Rules

15A NCAC 02D, Air Pollution Control Requirements (263 rules)15A NCAC 02Q, Air Quality Permits Procedures (90 rules)Subchapters interrelated

Most rules are classified as “Necessary with substantive public interest”

Majority of Rules are federally required/approved under Clean Air Act (CAA) authorities (CAA Section 110 state implementation plan (SIP), Section 111d emissions guidelines, Title V and others)Identification that rule is federally required does not necessarily

preclude repeal as part of re-adoption process if warranted; however, a demonstration to EPA may be required. (e.g., 110(l) demonstration of non-interference with attainment or maintenance of a National Ambient Air Quality Standard (NAAQS))

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15A NCAC 02D and 02Q SummaryNecessary with Substantive Public Interest

Necessary without Substantive Public Interest

Unnecessary

Total

15A NCAC 02D

232 4 27 263

15A NCAC 02Q

90 0 0 90

Total 322 4 27 353

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Unnecessary RulesRules repealed effective January 1, 2015(12)

15A NCAC 02D .0800, Complex Sources (5 rules) -already in process of being repealed

15A NCAC 02Q .0600, Transportation Facility Procedures (7 rules) - already in process of being repealed

Removed from report per January AQC approval

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Unnecessary Rules, cont’d15A NCAC 02D .1600 General Conformity

3 rulesRequirement for states to have in rules made optional

15A NCAC 02D .2400 Clean Air Interstate Rules (CAIR)13 rules Cross State Air Pollution Rule (CSAPR) stay lifted, CAIR

will be phasing out 15A NCAC 02D .2500 Clean Air Mercury Rules (CAMR)

11 rules Courts previously determined developed under

inappropriate CAA authority and overturned rules (rules replaced by Mercury and Air Toxics Standards (MATS))

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Rules Without Substantive Interest

15A NCAC 02D .0103, Copies of Referenced Federal Regulations

15A NCAC 02D .0104, Incorporation by Reference

15A NCAC 02D .0105, Mailing List

15A NCAC 02D .1905, Regional Office Locations 20

Next StepsDeterminations approved by AQC – Jan 2015Approved by EMC - March 2015Public Comment Period- mid-March to mid-May 2015Report to AQC - July 2015Report to EMC for final approval - September 2015Report Due to RRC - By November 15, 2015RRC Reviews Report – December 17, 2015Final Determination Effective after APO consultation-

Beginning of 2016Schedule for Rulemaking to re-adopt rules in

accordance with APA developed with RRC staff and re-adoption process begins

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Greenhouse Gas (GHG) Permitting Rule Update

Supreme Court Opinion, UARG v. EPA, 6-23-2014

EPA can’t require Prevention of Significant Deterioration (PSD) or Title V permits solely on the basis of GHG emissions

Request to Proceed to Hearing on temporary rule approved at September AQC & EMC to clarify applicability of PSD and Title V permits based on Court Opinion

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Greenhouse Gas (GHG) Permitting Rule Update October 1st Hearing on temporary amendments

to 15A NCAC 02D .0544, Prevention of Significant Deterioration Requirements for Greenhouse Gases and 02Q .0502, Applicability, held in Raleigh

Comment Closed October 9, 2014 (4 commenters)

Hearing Officer’s Report presented and EMC adopted at November Meeting

Temporary Rule Effective date - December 2, 2014

Permanent rulemaking to replace temporary rule Request to proceed to hearing approved at March

2015 AQC and EMC; tentatively effective November 2015

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Update on Utility Boiler MACT Rule(aka EGU MATS Rule)

MACT Compliance Date = April 2015MACT Emission Performance Test Report

due Oct 2015Supreme Court Ruling on “Appropriate

and Necessary” expected in June 2015New Startup and Shutdown (SS) Rule

issued in Nov 2014SS Litigation Started in Feb 2015

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Update on Utility Boiler MACT Rule

Date Action on “Appropriate and Necessary” ConsiderationApril 2014 Divided 3-judge panel of U.S. Court of Appeals for D.C. Circuit ruled

EPA’s interpretation of Clean Air Act was reasonable for developing EGU MACT rule, finding EPA followed Congress’s intent to consider costs in rulemaking. However, one judge found it was unreasonable for EPA to exclude cost consideration.

Nov 2014 Supreme Court accepted EGU MACT rule case in response to appeal from 2 industry groups and 21 states. The basic question is whether and when EPA must take regulation costs into account. The court will hear arguments in spring of 2015 and is likely to rule in June 2015.

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Update on Utility Boiler MACT Rule

Date Action on Startup and Shutdown (SS) RulesNov 2014 EPA finalized rule modifying EGU SS definitions with alternate work practice

to initiate startup and continue using only clean fuels until primary particulate control device is on line. Must comply with emissions standards within 4 hours of generation of electricity or thermal energy. Shutdown begins when unit is no longer making electricity or generating thermal energy and ends when no fuel is fired.

Feb 2015

Industry and environmental groups issued notice to challenge the new EGU SS rules. Key industry issues are the SS monitoring requirements, startup consideration for only particulate controls, and failure to limit SS diluent cap for oxygen or carbon dioxide levels. Key environmental issues are EPA conclusion that it is impractical to measure SS emissions, whether substituting SS work practices instead of emission standards meet MACT requirements, and standard-setting process based on 3-hour tests for 30-day average emission limits.

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Cross State Air Pollution Rule (CSAPR)

Stay of CSAPR Implementation Lifted Late 2014

CSAPR Federal Implementation Plan (FIP) In Effect replacing CAIR

Facility Allocations in Accounts

Non-EGU NOx SIP Call Sources not included in CSAPR; discussing what form of demonstration that NOx SIP Call obligation is being met is needed

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NC Current NAAQS Designation StatusStandards and goals set a decade ago have been met!

1997 Ozone standard 1997 Fine particle standard 2006 Lead standard 2010 Nitrogen dioxide standard 2010 Sulfur dioxide (SO2) standard (all monitors attaining,

designations deferred) 2012 Fine particle (PM2.5) standard

2008 ozone standard - Charlotte area now attaining

2015 ozone standard - what will the new EPA standard look like?

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EPA’s Proposed Revisions to the Ozone Primary and Secondary NAAQS

Proposed rule published in Federal Register on Dec. 17th, 2014

(79 FR 75234)

Comment deadline - March 17th, 2015

Proposal to update both the Primary and Secondary standards Both would be 8-hour standards set within a range

of 65 to 70 parts per billion (ppb)

EPA requested comment on levels for the primary standard as low as 60 ppb

EPA accepted comments on all aspects of the proposal, including on retaining the existing standard

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Charlotte Area Redesignation Request and Maintenance SIP for 2008 Ozone NAAQSPre-Hearing Drafts for Public Notice

Public Comment Period: March 9 – April 10,

2015

Request EPA approval for:

Redesignating area to attainment for current 2008

standard Relaxation of summertime gasoline volatility

standard for Mecklenburg and Gaston Counties to provide for uniform statewide standard

Final – submit to EPA by mid-April

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NC Ozone Design Values (2012-2014) Relative to Proposed Revised Ozone NAAQS Levels

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Recent Rule Amendments and Repeals Transportation Facility Permit Rules

15A NCAC 02D . 0800 and 02Q .0600 Repealed effective January 1, 2015

Non-Title V Permit 8-year Duration 15A NCAC 02Q .0308 Amended effective January 1, 2015

Open Burning Rules to Reflect S.L. 2013-413 15A NCAC 02D .1903 adopted by EMC - Awaiting

legislative review per session law 15A NCAC 02D .1901 and .1902 Forest Service

name change effective January 1, 2015

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Vehicle Emissions Inspection/Maintenance (I/M) Three Year Exemption

Amendments to 02D .1000 previously adopted by EMC

Exempt three most recent model years with less than 70,000 miles on odometer

Approved by EPA in FR 2-5-2015 (effective 3-9-15)

Per Session Law to become state effective first of month following certification of MILES system and certification of EPA approval

DAQ coordinated with DMV – Certifications complete

Effective April 1, 2015 33

Rules in Amendment Process 2012 PM2.5 National Ambient Air Quality

Standard (NAAQS) Incorporates 2012 PM2.5 NAAQS into state rules 15A NCAC 02D .0410

Open Burning Rules to Reflect S.L. 2014-120 Allows residential burning of stumps and logs Deemed by S.L. not to be a nuisance 15A NCAC 02D .1903 and .1902

Removal of Source Reduction and Recycling Report Requirement Aligns rule with S.L. 2014-120 repeal of G.S. 143-

215.108(g) 15A NCAC 02Q .0206, .0304, and .0507

Request to Proceed to Hearing Approved at March AQC/EMC (except Open Burning)

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Next AQC and EMC MeetingsAQC May 13, 2015

EMC May 14, 2015

EMC homepagehttp://portal.ncdenr.org/web/emc/home

Meetings available via webinar (sound and slides only)One link for committee meetings dayOne link for EMC day

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Contact Information

Joelle BurlesonRules Development Branch SupervisorPlanning Section, Division of Air Quality, DENRjoelle.burleson@ncdenr.gov

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