1. Air Quality Committee May 13, 2015
Permit Exemptions Rule Revisions North Carolina Division of Air Quality
Air Quality Committee
May 13, 2015

2. Overview Historical Approach to Permitting Background
Alternative Tiered Threshold Proposals
Division of Air Quality Recommended Approach
Compliance

3. Take Limit to be Synthetic Minor
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
Registration
(Future)
Below cutoff?

4. 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
Level of effort is relatively high for facilities with very low emissions
Should we consider doing something different that will not compromise compliance rates or air quality?
Concentrated discussion and strategic thinking sessions
Data analysis (emissions profiles, compliance history, regulatory framework and complexity)
Staff experience

5. 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
Not impact air quality

6. 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

7. NCMA Tiered Approach Tier 1 - Registration
Actual emissions of all pollutants greater than 5 tons per year (tpy) and less than or equal to 25 tpy.
MACT, Title V, NSPS, or sources of VOC or NOx in nonattainment areas are not eligible.
No registration for sources with broad public interest.
Registered facilities would be subject to a fee.
Facilities would have to provide sufficient information to understand the sources of emissions, location of the facility, and the contact information needed for appropriate follow-up, should the need arise.

8. NCMA Tiered Approach Tier 2 – Permit by Rule
Actual emissions of all pollutants greater than 25 tpy but less than 50 tpy and potential to emit less than 100 tpy based on operational constraints.
Eligible facilities file a notice of intent to be covered by the rule.
Facilities are subject to a fee.
Facilities provide sufficient information to DAQ to obtain annual reports and schedule compliance assurance visits.

9. NCMA Tiered Approach 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.

10. NC Chamber Tiered Approach
Tier 1 – Registration (larger facilities)
Actual emissions of all pollutants greater than 50 tpy and less than 100 tpy.
Update registration annually indicating whether emission units have been added or changed.
Provide a list of additions or changes to listed emission units along with any additional regulatory requirements applicable to any new or changed unit.
Registered facilities would be subject to compliance assurance visits on frequencies established by DAQ.
Registration fee.

11. NC Chamber Tiered Approach
Tier 2 – Registration (smaller facilities)
Facilities with actual emissions for all pollutants less than 25 tpy would be exempt from registration or any other permitting requirements.
Registration for facilities with actual emissions of all pollutants greater than 25 tpy and less than 50 tpy.
Initial registration same as Tier 1 facilities.
Update registrations on the same frequency as required for emissions inventories (every 8 years).
Registered facilities would be subject to compliance assurance visits on frequencies established by DAQ.
Registration fee.

12. Shuford Yarns Tier 1 – Registration
Actual emissions for all pollutants less than 50 tpy.
MACT, Title V, NSPS, or sources of VOC or NOx in nonattainment areas are not eligible.
NSPS requiring performance testing not eligible unless DAQ determines appropriate for registration.
No registration for sources with broad public interest.
Registered facilities would be subject to a fee.
Facilities would have to provide sufficient information to understand the sources of emissions, location of the facility, and the contact information needed for appropriate follow-up, should the need arise.

13. Shuford Yarns Tier 2 – Permit by Rule
Meets requirements of Tier 1 and also have NSPS or GACT sources that do not have performance requirements.
Eligible facilities file a notice of intent to be covered by the rule.
Facilities are subject to a fee.
Facilities provide sufficient information to DAQ to obtain annual reports and schedule compliance assurance visits.

14. Shuford Yarns 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.

15. DAQ Recommended Approach
Revise 02Q – 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.

16. 02Q .0102 – Permit Exemptions General list of changes Clean-up
Simplify language where possible
Remove uses of “exceptions to exemptions”
Expand exemptions where possible
Fewer interpretive memos needed to help apply the rule

17. 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.

18. 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.

19. 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.

20. 502(b)(10) Requirements
Name refers to section under Title V of the CAA.
Requirements
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.

21. Examples of 502(b)(10) Changes
Replacing an emission/process unit with an identical unit.
Making a change to a permitted source that affects emissions but does not result in an emissions increase above an existing emissions limit.
Increasing or changing fuels or raw materials used in a permitted source that affects emissions but does not result in an emissions increase above an existing emissions limit.
Installing emission control equipment or limiting emissions from a permitted source provided the action does not avoid an applicable requirement.
Changing the filter size of an existing bagfilter.

22. Compliance DAQ will maintain a public database of active facilities
Same frequency of 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
Expect same level of compliance with regulatory requirements

23. Compliance
If compliance is an issue, a permit shall be required if necessary to obtain or maintain compliance
Response to complaints – DAQ will follow up/investigate

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