1 Improving Environmental Protection and Reducing Administrative Burden North Carolina Division of Air Quality Improving Environmental Protection and Reducing Administrative Burden North Carolina Division of Air Quality Air Quality Committee May 13, 2015

Increasing Environmental Protection Historical Approach to Permitting Background Alternative Tiered Threshold Proposals Revisions to Permit Exemptions Improved Compliance 2

3 Do I need a permit? Take Limit to be Synthetic Minor Small No permit Exempt? Facility Type? General Permit Yarn Spinning Concrete Batch Cotton Gin Permit by Rule Emergency Generator Temporary Crusher NonTitle V Permit PTE above Title V? Title V Permit Want Title V? Registration (Future) Below cutoff?

Background Frustrations with 02Q.0102 – Permit exemptions rule –Difficult to understand and implement –Started internal workgroup to improve rule Simultaneously – Take a fresh look at non-Title V permitting –Administrative level of effort is relatively high for facilities with very low emissions –Should we consider doing something different that improve environmental protection and reduce administrative burden? –Concentrated discussion and strategic thinking sessions –Data analysis (emissions profiles, compliance history, regulatory framework and complexity) –Staff experience 4

Background Internal Workgroup Formed –Regional and Central Office Permitting staff representatives, Rules staff, and Division of Environmental Assistance and Customer Service (DEACS) representative Goal: –Simplify rules –Reduce regulatory burden –Maintain compliance with State and Federal requirements –Improve Environmental Outcomes 7

Background Stakeholder Meeting held November 6, 2014 Participation from environmental groups, regulated community, local programs Feedback was requested Agency received comments and suggestions regarding alternative tiered threshold approaches to further simplify the permitting process 8

NCMA Tiered Approach Tier 1 - Registration –Actual emissions of all pollutants > 5 tons per year (tpy) and < 25 tpy. –MACT, Title V, NSPS, or sources of VOC or NOx in nonattainment areas are not eligible. –Registered facilities would be subject to a fee. Tier 2 – Permit by Rule –Actual emissions of all pollutants > 25 tpy but < 50 tpy and potential to emit < 100 tpy based on operational constraints. –Facilities are subject to a fee. Tier 3 – Air Quality Permit –All sources that do not qualify for Tier 1 or Tier 2 and are not Title V. 9

NC Chamber Tiered Approach Tier 1 – Registration (larger facilities) –Actual emissions of all pollutants > 50 tpy and < 100 tpy. –Update registration annually indicating whether emission units have been added or changed. –Registration fee. Tier 2 – Registration (smaller facilities) –Facilities with actual emissions for all pollutants < 25 tpy would be exempt from registration or any other permitting requirements. –Registration for facilities with actual emissions of all pollutants > 25 tpy and < 50 tpy. –Registration fee. 10

Shuford Yarns Tier 1 – Registration –Actual emissions for all pollutants < 50 tpy. –MACT, Title V, NSPS, or sources of VOC or NOx in nonattainment areas are not eligible. –Registered facilities would be subject to a fee. Tier 2 – Permit by Rule –Meets requirements of Tier 1 and also have NSPS or GACT sources that do not have performance requirements. –Facilities are subject to a fee. Tier 3 – Air Quality Permit –All sources that do not qualify for Tier 1 or Tier 2 and are not Title V. –Fees and permits issued as they are now. 11

Revisions to Permit Exemptions Revise 02Q.0102 – Permit Exemptions General Permits or Permit by Rule –Concrete Manufacturing Facilities –Grain Elevators –Yarn Spinners Develop 502(b)(10) process for changes similar to one for Title V facilities in 15A NCAC 02Q Add peak shavers exemption to 15A NCAC 02Q GACT subject sources not automatically triggered into permitting. 5 TPY facility wide actual emissions exemption threshold 12

02Q.0102 – Permit Exemptions General list of changes –Clean-up –Simplify language where possible –Remove uses of “exceptions to exemptions” –Expand exemptions where administrative efforts exceed benefits –Fewer interpretive memos needed to help apply the rule 13

02Q.0102 – Permit Exemptions Miscellaneous Activities –For particulates, replaced TSP with PM10. –Registration for facilities with actual emissions of all pollutants less than 25 tpy. –Registered facilities subject to a fee. 14

02Q.0102 – Permit Exemptions Noted modifications (cont.) –Added wood fuel to the unadulterated liquid fossil fuel combustion exemption. –Added categorical exemption for sawmills processing green wood (removed former corresponding size exemption). –Expanded stationary RICE unit exemption. 15

02Q.0102 – Permit Exemptions Noted modifications (cont.) –Removed portable generator exemptions because DAQ does not regulate Title II sources. –Eliminated exemption for peak shaving units in favor of a specific exemption by rule in 15A NCAC 2Q –Expanded coating and graphic arts exemption allowing smaller sources of VOCs to be exempted. 16

502(b)(10) Requirements Name refers to section under Title V of the CAA. No Permit Modification Required if: –Changes are not a modification under 15A NCAC 02D or Title I of the federal Clean Air Act. –Changes do not cause the emissions allowed under the permit to be exceeded. –Changes do not require a permit under the North Carolina Toxics program. –Permittee notifies the Director and EPA with written notification at least seven days before the change is made. –Permittee attaches the notice to the relevant permit. 17

Improving Compliance DAQ will maintain a public database of active facilities More frequent facility visits Compliance presence will continue Compliance assurance visits will: –address all requirements of the rules –address recordkeeping and monitoring requirements of the rules –discuss any new regulatory requirements the facility should be aware of –share best practices Increased level of compliance with regulatory requirements 18

Improving Compliance If compliance is an issue, a permit shall be required if necessary to obtain or maintain compliance Like permitted facilities and emission units DAQ will continue to respond to complaints and follow up as necessary 19

20 Contact Information Sheila Holman, Director, Mike Abraczinskas, Deputy Director, Joelle Burleson, Rules Supervisor,