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Improving Environmental Improving Environmental Protection and Reducing Protection and Reducing Administrative BurdenAdministrative Burden

North Carolina Division of Air QualityNorth Carolina Division of Air Quality

Air Quality CommitteeMay 13, 2015

Increasing Environmental Protection

• Historical Approach to Permitting

• Background

• Alternative Tiered Threshold Proposals

• Revisions to Permit Exemptions

• Improved Compliance

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Do I need a permit?

Take Limit to be Synthetic

Minor

Small

No permit Exempt?

Facility Type?

General PermitYarn SpinningConcrete Batch

Cotton Gin

Permit by RuleEmergency GeneratorTemporary CrusherNonTitle V

Permit

PTE above

Title V?

Title V Permit

WantTitle 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

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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

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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

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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.

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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.

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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.

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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 .0523.

• Add peak shavers exemption to 15A NCAC 02Q .0903.• GACT subject sources not automatically triggered

into permitting.• 5 TPY facility wide actual emissions exemption

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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

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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.

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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.

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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 .0900.

– Expanded coating and graphic arts exemption allowing smaller sources of VOCs to be exempted.

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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

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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

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Contact Information

Sheila Holman, Director, 919-707-8430

Mike Abraczinskas, Deputy Director, 919-707-8447

Joelle Burleson, Rules Supervisor, 919-707-8720