1. 1 Permit Exemptions Rule Revisions North Carolina Division of Air Quality Permit Exemptions Rule Revisions North Carolina Division of Air Quality Stakeholder Meeting November 6, 2014

2. Overview Introductions Background 02Q.0102 – Permit Exemptions 02Q.0900 – Permit by rule Compliance strategy 2

3. 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 3

4. 02Q.0102 – Permit Exemptions Goal: Streamline, improve the structure, update, make it easier to use Thanks to our workgroup !!! Jalal Adouli, Joelle Burleson, Mark Cuilla, Denise Hayes, Charles McEachern, Tony Pendola. 4

5. 02Q.0102 – Permit Exemptions What’s changing? 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 5

6. 02Q.0102 – Permit Exemptions What’s changing? Noted modifications –Filters in former paragraph (b) have been removed –Rule more clearly separates exemptions that: Have “no regulatory impact” (former categorical) Have “regulatory impact” (former size) –Changes make it more clear that rule does not apply to Title V facilities Expansion of many exemptions now at major source permitting thresholds 6

7. 02Q.0102 – Permit Exemptions What’s changing? Noted modifications (cont.) –Miscellaneous exemptions replace PM100 with PM10 matching TV applicability –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 to all units defined in 40 CFR 63.6675 (thereby increasing exemption level to TV thresholds) 7

8. 02Q.0102 – Permit Exemptions What’s changing? 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.0900 –Expanded coating and graphic arts exemption allowing smaller sources of VOCs to be exempted 8

9. Permit by Rule 02Q.0900 Section Source categories exempt from permitting provided they comply with the conditions of the rule Relieves administrative burden Rules contain qualifying criteria, emissions limitations, conditions for operation, and requirements for record keeping and reporting. Compliance program maintains compliance rates Facilities still have the option to request a traditional permit 9

10. Permit by Rule 3 new rules being considered –Ready-mix concrete batch, concrete block manufacturing, and precast concrete manufacturing facilities –Grain elevators –Yarn spinners Expansion of an existing rule –02Q.0903 to include peak shaver engines Considered: –Emissions profile (amount and type) –Compliance history –Regulatory framework and complexity –Regional staff experience –Balancing level of effort with air quality impacts 10

11. Ready-mix concrete batch and concrete block and precast products Repeal 02Q.0809 Adopt new 02Q.0904 –Contains conditions similar to what you currently would find in a small or general permit Number of facilities: ~260 Compliance assurance visits 11

12. Ready-mix concrete batch and concrete block and precast products < 5 tons per year of PM10 Facility uses fabric filters or equivalent Provide info on start-up, relocations, or closure Properly operate and maintain facility in a way that minimizes air pollution Facility performs annual inspection of control devices and periodic inspections & maintenance as recommended by the equipment manufacturer. Keep records. Comply with Subchapter 02D Don’t exceed ambient standards beyond property line Maintain monthly records of material produced and materials mixed… totaled annually… for 3 years. 12

13. Yarn Spinners Adopt new 02Q.0905 –Contains conditions similar to what you currently would find in a small or general permit Number of facilities: ~48 Compliance assurance visits continue 13

14. Yarn Spinners 14

15. Grain Elevators Repeal 02Q.0805 Adopt new 02Q.0906 –Contains conditions similar to what you currently would find in a small permit Number of facilities: ~39 Compliance assurance visits continue 15

16. Grain Elevators 16

17. 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 rule –address recordkeeping and monitoring requirements of the rule –discuss any new regulatory requirements the facility should be aware of –share best practices Expect same level of compliance with regulatory requirements 17

18. 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 18

19. Next steps Give us your thoughts! –Deadline = December 6, 2014 –Email to: daq.publiccomments@ncdenr.gov daq.publiccomments@ncdenr.gov Draft rule and fiscal note prep December-February Present draft rules to AQCMarch-May 2015 Request to proceed to public hearingMay-July 2015 Public hearing and commentsMid-late summer 2015 FinalLate 2015-early 2016 19

20. 20 Contact Information Sheila Holman, Director, 919-707-8430 Mike Abraczinskas, Deputy Director, 919-707-8447 Joelle Burleson, Rules Supervisor, 919-707-8720 –Permit Exemptions rule revisions web page: http://www.ncair.org/rules/Exemptions/