Draft Air Quality Rules Readoption Group 4 AQC

Draft Air Quality Rules Readoption, Group 4 AQC Meeting – September 12, 2018 Department of Environmental Quality

Rule Groups & Anticipated General Timing Tentative Rule Readoption Schedule (Subject to Change) Group Rules* Stakeholder Meeting Target EMC Adoption 1 02 D. 0100, . 0200, . 0300, . 0400, . 1300, . 2000, . 2200, . 2300# 02 Q. 0100, . 0200, . 0300, . 0400, . 0500, . 0800, . 0900 02 D. 1100, . 1200, . 1700**, 02 Q. 0700 December 2, 2016 4 02 D. 0540, . 1800, . 1900 February 13, 2018 5 02 D. 0600, . 2100, . 2600 02 D. 0500, . 0900, . 1000**, . 1400 June 28, 2018 2 3 6 March 6, 2017 June 5, 2017 Summer/Fall 2018 January 2018 Effective: 1/1/2018 02 D. 2203, 2/1/2018 March/April 2018 Effective: 4/1/2018 Summer 2018 Effective: 7/1/2018 02 D. 1204, 3/1/2018 Spring 2019 End Stakeholder Comments: 2/28/2018 Spring/Summer 2019 Summer/Fall 2019 02 D. 1000 Effective 7/1/2018 * Some rules may shift groups as process progresses. ** 02 D. 1000 and. 1700 are on separate tracks from the rest of rules up for readoption. 02 D. 1000 effective July 1, 2018. # 02 D. 2300 deferred from Group 1 for further DAQ consideration post stakeholder; to be processed with Group 5. Department of Environmental Quality 2

3 H 74 Group 4 Rules • NC Fugitive Dust Rule ‒ 15 A NCAC 02 D. 0540, Particulates from Fugitive Dust Emission Sources • NC Odor Rules ‒ 15 A NCAC 02 D. 1800, Control of Odors • NC Open Burning Rules ‒ 15 A NCAC 02 D. 1900, Open Burning • 11/08/2017 Concept to AQC • 02/13/2018 Stakeholder Meeting • 02/28/2018 Stakeholder Comments Due • 09/12/2018 Draft Rules to Air Quality Committee (AQC) Department of Environmental Quality

4 H 74 Group 4 Rules Preliminary Updates NC Fugitive Dust Rule - 15 A NCAC 02 D. 0540 Rule 15 A NCAC 02 D. 0540 Substantive Changes Procedural Changes Clarify definitions, exemptions, and requirements for a fugitive dust control plan. Update format of Section and Rule citations. Department of Environmental Quality

5 H 74 Group 4 Rules Preliminary Updates NC Odor Rules - 15 A NCAC 02 D. 1800 Rule Substantive Changes Procedural Changes 15 A NCAC 02 D. 1801 N/A 15 A NCAC 02 D. 1802 Amend rule language to provide clarity. Remove obsolete text. Redefine what constitutes a plan failure for a best management plan. Administrative and technical changes. 15 A NCAC 02 D. 1803 N/A Administrative and technical changes. 15 A NCAC 02 D. 1804 N/A 15 A NCAC 02 D. 1806 Amend rule language to provide clarity. Remove obsolete text. Add provision for requesting extensions. Add an intermediary step prior to requirement for maximum feasible controls. Add exemption for products that are (i) grown, produced, or generated on one or more agricultural operations and (ii) "renewable energy resources, " per S. L. 2017 -108. N/A Administrative and technical changes. 15 A NCAC 02 D. 1807 N/A Administrative and technical changes. 15 A NCAC 02 D. 1808 N/A Administrative and technical changes.

6 H 74 Group 4 Rules Preliminary Updates NC Open Burning Rules – 15 NCAC 02 D. 1900 Rule Substantive Changes Procedural Changes 15 A NCAC 02 D. 1901 NA Update format of Rule citations. 15 A NCAC 02 D. 1902 15 A NCAC 02 D. 1903 15 A NCAC 02 D. 1904 Remove definitions that are no longer applicable or Update format of Section and Rule citations. necessary. Break up one definition into two parts for clarity. Add clarifying language to several paragraphs. Update language to reflect current procedures Update format of Section and Rule citations. Amend rule to make it consistent with new Federal Update format of Section and Rule citations Emission Guidelines. Delete outdated language and remove existing requirements that are unnecessary now that Federal Emission Guidelines are applicable to air curtain incinerators. 15 A NCAC 02 D. 1905 NA Update regional office addresses. 15 A NCAC 02 D. 1906 NA Update county office name. 15 A NCAC 02 D. 1907 NA Update format of Section.

7 H 74 Group 4 Rules • Stakeholder participation at meeting good • Comments from: • Air Curtain Incinerator (ACI) Operators and a Town that Uses ACI services on impacts of costs of Title V permit • Environmental Groups supporting the existing definition of objectionable odor in. 1800 rules, on clarification of applicability to liquid waste management systems, changes to best management plan provisions, and suggesting reporting of ammonia and hydrogen sulfide emissions in best management plans • Department of Agriculture and Consumer Services on various reference corrections, confusing units for steady state live weight, redundant language • National Waste and Recycling Association supporting suggested changes to 02 D. 1800 Department of Environmental Quality

8 H 74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02 D. 1904 Department of Environmental Quality

9 H 74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02 D. 1904 • Air Curtain Incinerators (ACIs) may be subject to any of the following federal rules: 40 CFR 60, Subpart AAAA, BBBB, CCCC, DDDD, EEEE, or FFFF. • Most ACIs operating in NC will require a Title V permit, with the only clear exception being for temporary units used for disaster recovery purposes. • DAQ is developing a general Title V permit for ACIs. • Notification requirements for ACIs used for disaster recovery longer than eight weeks. • 10% opacity limit applies during normal operation; 35% opacity limit applies during startup (first 30 minutes of operation). • Initial and annual opacity testing required. Department of Environmental Quality

1 0 H 74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02 D. 1904 • 6 Permitted Air Curtain Incinerators in NC • Varying dimensions • 10 -20 tons per hour maximum burning capacity • Throughput ranged from 0 to 3500 tons per year with a total of 4595 tons per year for all 6 • 5 operate intermittently and 1 facility has not operated its ACI in the last 3 years Department of Environmental Quality

1 1 H 74 Group 4 Rules • Fiscal Note approved by Office of State Budget and Management (OSBM) on June 13, 2018 as not resulting in significant state or local fiscal impact or substantial economic impact to the regulated community or other parties. • Private sector impact is from changes to 02 D. 1904 reflecting federal requirements and is due to increased fees for obtaining a General Title V Permit estimated to range from $0 to $23, 064 in the first year and $0 -$19, 839 for subsequent years depending on the compliance path facilities choose. • S. L. 2018 -114, Regulatory Reform Act of 2018, Section 13, reduces the fee for air curtain burners with emissions below the Title V major source threshold to 10% of otherwise applicable fee, and requires implementation in interim until the EMC adopts the specified change to its permit fee rule 15 A NCAC 02 Q. 0203. Department of Environmental Quality

1 2 H 74 Group 4 Rules • Estimated Total Impact Changes as a Result of S. L. 2018 -114 • Total Cost Changes • Current RIA $0 to $23, 064 for first year $0 to $19, 839 for subsequent years • Revised RIA $0 to $3, 936 for first year $ 0 to $2, 768 for subsequent years • Costs Changes on an Individual Permit Basis • Current RIA (50% of Applicable Fee) $3, 556. 50 General Permit Annual Fee $437. 50 Permit Application Fee • Revised RIA (10% of Applicable Fee) $711. 30 General Permit Annual Fee $94. 70 Permit Application Fee Department of Environmental Quality

1 3 H 74 Group 4 Rules (Updated) • S. L. 2017 -108 An Act To Amend Certain Laws Governing Agricultural Matters. • EXPAND FACILITIES EXEMPT FROM EMC RULE • SECTION 2. (a) Rule. – Until the effective date of the revised permanent rule that the Environmental Management Commission is required to adopt pursuant to subsection (c) of this section, the Commission shall implement 15 A NCAC 02 D. 1806, as provided in subsection (b) of this section. • SECTION 2. (b) Implementation. – Notwithstanding subsection (c) of 15 A NCAC 02 D. 1806, any facility that stores products that are (i) grown, produced, or generated on one or more agricultural operations and (ii) "renewable energy resources, " as defined in G. S. 62 -133. 8(a)(8), shall be exempt from the requirements of 15 A NCAC 02 D. 1806 until the Environmental Management Commission reviews and readopts the Rule pursuant to subsection (c) of this section and determines the criteria under which the exemption should be made permanent. • SECTION 2. (c) Additional Rule-Making Authority. – The Commission shall adopt rules to amend 15 A NCAC 02 D. 1806 consistent with subsection (b) of this section. • SECTION 2. (d) Effective Date. – Subsection (b) of this section expires on the date that rules adopted pursuant to subsection (c) of this section become effective. The remainder of this section is effective when it becomes law. Department of Environmental Quality

1 4 H 74 Group 4 Rules (Updated) • G. S. § 62 -133. 8. Renewable Energy and Energy Efficiency Portfolio Standard (REPS). • (a) Definitions. – As used in this section: . (8) "Renewable energy resource" means a solar electric, solar thermal, wind, hydropower, geothermal, or ocean current or wave energy resource; a biomass resource, including agricultural waste, animal waste, wood waste, spent pulping liquors, combustible residues, combustible liquids, combustible gases, energy crops, or landfill methane; waste heat derived from a renewable energy resource and used to produce electricity or useful, measurable thermal energy at a retail electric customer's facility; or hydrogen derived from a renewable energy resource. "Renewable energy resource" does not include peat, a fossil fuel, or nuclear energy resource. Department of Environmental Quality

1 5 H 74 Group 4 Rules Preliminary Updates 15 NCAC 02 D. 1806 • 02 D. 1806 amended to include: (d) Exemptions. The requirements of this Rule do not apply to: . (11) any facility that stores products that are grown, produced, or generated on one or more agricultural operations and that are "renewable energy resources, " as defined in G. S. 62 -133. 8(a)(8) if the facility identifies the sources of potential odor emissions and specifies odor management practices in their permit pursuant to 15 A NCAC 02 Q. 0300 or. 0500 to minimize objectionable odor beyond the property lines. Department of Environmental Quality

1 6 H 74 Group 4 Rules Preliminary Updates 15 NCAC 02 D. 1806 • Proposed Exemption Criteria consists of proactive inclusion of measures for minimizing odor in permit • Allows flexibility to use site specific measures to address site characteristics that can impact odor • Provides transparency • Cost impacts expected to be minimal Department of Environmental Quality

1 7 Group 4 Rules Tentative Timing - Updated (subject to change) • 11/8/2017 Concept to Air Quality Committee (AQC) • 2/13/2018 Stakeholder Meeting • 9/12/2018 Draft Rules to AQC • 11/8/2018 Request to Proceed to Comment and Hearing to Environmental Management Commission (EMC) • 12/17/2018 - Public Comment Period and Hearing 2/15/2019 • 5/9/2019 Readoption by EMC • 6/20/2019 Rules Review Commission Approval • 7/1/2019 Tentatively Effective Department of Environmental Quality

1 8 H 74 Group 4 Rules (Updated) • DAQ requests approval to proceed to the EMC in November to request approval to proceed to public comment and hearing on the proposed readoption of 15 A NCAC 02 D. 0540, . 1800, and. 1900 Department of Environmental Quality

1 9 Contact Joelle Burleson, EIT, CPM Senior Regulatory Advisor Division of Air Quality, Planning Section North Carolina Department of Environmental Quality 919 707 8720 office joelle. burleson@ncdenr. gov Department of Environmental Quality

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