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Department of Environmental Quality Group 4 Air Quality Rules Readoption Hearing Report Environmental Management Commission Meeting – July 11, 2019

2 Department of Environmental Quality Rule Groups & Anticipated General Timing Tentative Rule Readoption Schedule (Subject to Change) Group Rules* Stakeholder MeetingTarget EMC Adoption102D .0100, .0200, .0300, .0400, .1300, .2000, .2200, .2300#December 2, 2016January 2018Effective: 1/1/2018 02D .2203, 2/1/2018202Q .0100, .0200, .0300, .0400, .0500, .0800, .0900March 6, 2017March/April 2018 Effective:4/1/2018302D .1100, .1200, .1700**, 02Q .0700June 5, 2017Summer 2018 Effective: 7/1/2018 02D .1204, 3/1/2018402D .0540, .1800, .1900February 13, 2018Summer 2019502D .0600, .2100, .2600June 28, 2018Fall 2019602D .0500, .0900, .1000**, .1400Summer/Fall 2018Summer/Fall 202002D .1000 Effective 7/1/2018 * Some rules may shift groups as process progresses.** 02D .1000 and .1700 are on separate tracks from the rest of rules up for readoption. 02D .1000 effective July 1, 2018. 02D .1700 being processed with Group 6. # 02D .2300 deferred from Group 1 for further DAQ consideration post stakeholder; to be processed with Group 5.

H74 Group 4 Rules NC Fugitive Dust Rule 15A NCAC 02D .0540, Particulates from Fugitive Dust Emission Sources NC Odor Rules 15A NCAC 02D .1800, Control of Odors NC Open Burning Rules15A NCAC 02D .1900, Open Burning11/08/2017 Concept to AQC02/13/2018 Stakeholder Meeting 10/09/2018 Draft Rules to Air Quality Committee (AQC)11/08/2018 Rules to EMC for request to proceed to public hearingDepartment of Environmental Quality3

H74 Proposed Group 4 Rules Updates NC Fugitive Dust Rule - 15A NCAC 02D .0540 Rule Substantive Changes Procedural Changes15A NCAC 02D .0540 Particulates From Fugitive Dust Emission Sources Clarify definitions, exemptions, and requirements for a fugitive dust control plan.Update format of Section and Rule citations and reflect gender neutral language.Department of Environmental Quality4

H74 Proposed Group 4 Rules Updates NC Odor Rules - 15A NCAC 02D .1800 Rule Substantive Changes Procedural Changes15A NCAC 02D .1801 Definitions N/AN/A15A NCAC 02D .1802 Control of Odors from Animal Operations Using Liquid AnimalWaste Management SystemsAmend rule language to provide clarity. Remove obsolete text. Redefine what constitutes a plan failure for a best management plan. Administrative and technical changes.15A NCAC 02D .1803 Best Management Plans for Animal OperationsN/AAdministrative and technical changes.15A NCAC 02D . 1804 Reporting Requirements for Animal OperationsN/AN/A15A NCAC 02D .1806 Control and Prohibition of Odorous EmissionsAmend 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.Administrative and technical changes.15A NCAC 02D .1807 Determination of Maximum Feasible Controls for OdorousEmissionsN/AAdministrative and technical changes.15A NCAC 02D .1808 Evaluation of New or Modified Swine FarmsN/AAdministrative and technical changes.5

H74 Proposed Group 4 Rules Updates NC Open Burning Rules – 15 NCAC 02D .1900 Rule Substantive Changes Procedural Changes15A NCAC 02D .1901 Open Burning: Purpose: Scope NAUpdate format of Rule citations.15A NCAC 02D .1902 DefinitionsRemove definitions that are no longer applicable or necessary. Break up one definition into two parts for clarity.Update format of Section and Rule citations.15A NCAC 02D .1903 Open Burning Without an Air Quality PermitAdd clarifying language to several paragraphs. Update language to reflect current proceduresUpdate format of Section and Rule citations.15A NCAC 02D .1904 Air Curtain BurnersAmend rule to make it consistent with new Federal Emission Guidelines. Delete outdated language and remove existing requirements that are unnecessary now that Federal Emission Guidelines are applicable to air curtain incinerators.Update format of Section and Rule citations15A NCAC 02D .1905 Regional Office LocationsNAUpdate regional office addresses.15A NCAC 02D .1906 Delegation to County Governments NAUpdate county office name.15A NCAC 02D .1907 Multiple Violations Arising from a Single Episode NAUpdate format of Section.6

H74 Group 4 Rules Regulatory Impact Analysis (RIA) 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. A revised RIA was approved by OSBM on October 5, 2018 that includes S.L. 2018-114, Regulatory Reform Act of 2018, Section 13, that reduces the Title V fee for air curtain incinerators to 10% of the otherwise applicable fee. Private sector impact is from changes to 02D .1904 reflecting federal requirements and is due to increased fees for obtaining a General Title V Permit estimated to range from $0 to $3,936 in the first year and $0 to $2,768 for subsequent years depending on the compliance path facilities choose. The air curtain incinerator General Title V Permit fee in S.L. 2018-114 requires implementation in interim until the EMC adopts the specified change to its permit fee rule 15A NCAC 02Q .0203.Overall, the proposed readoptions and amendment do not result in a significant state or local fiscal impact or substantial economic impact to the regulated community or other parties. Department of Environmental Quality7

Group 4 Rules Tentative Timing (subject to change) Department of Environmental Quality 11/8/2017 Concept to Air Quality Committee (AQC) 2/13/2018 Stakeholder Meeting 10/09/2018 Draft Rules to AQC11/8/2018 Request to Proceed to Comment and Hearing to Environmental Management Commission (EMC) 12/17/2018- Public Comment Period and Hearing 2/15/20193/15/2019- Public Comment Period (02D .1800 and Regulatory Impact 5/14/2019 Analysis)7/11/2019 Readoption by EMC8/15/2019 Rules Review Commission Approval9/1/2019 Tentatively Effective8

Hearing Report on H74 Readoption of Group 4 Air Quality Rules Hearings: January 29, 2019, Raleigh January 31, 2019, Clinton Hearing Officer: AQC Vice Chairman, Charlie Carter Comment Period Closed: February 15, 2019 2nd Comment Period on RIA for .1800 Closed: May 14, 2019Department of Environmental Quality9

H74 Group 4 Rules Comments and Response Summary 200+ comments received from concerned citizens, environmental groups, special interest groups and EPA 15A NCAC 02D .0540, Particulates From Fugitive Dust Emission Sources – No comments received. 15A NCAC 02D .1800, Control of Odors216 commenters objected to odor in River Bluff community in the Wilmington area and commented on effectiveness of the rulesDAQ’s Wilmington Regional Office staff have responded to numerous odor complaints, conducted investigation to determine source of odor and issued an objectionable odor determination resulting in a requirement for the facility to install maximum feasible control technology. No changes to the rule resulted from these comments. Department of Environmental Quality10

H74 Group 4 Rules Comments and Response Summary 15A NCAC 02D .1800, Control of Odors 1802(f )(3) - Commenter recommended elimination of exemption, change Director response time from 30 days to 7-14 days; Exemption and 30-day response time retained to allow for adequate investigation time.1802(c)(1) – Commenter noted language not consistent with G.S. 106-403 and recommended DAQ update permit references in .1802(c)(2); Language updated for consistency with general statute .1806(d)(11) - Commenter requested exemption require evaluation of effectiveness of odor management practices; Another commenter opposed addition of the exemption in (d)(11) commenting it exceeds authority granted by S.L. 2017-108; Exemption language retainedDepartment of Environmental Quality11

H74 Group 4 Rules Comments and Response Summary 15A NCAC 02D .1900, Open Burning . 1903(b)(12) Commenter suggested “vegetative” be added to beginning for consistency with .1903(b)(2)(C); Descriptor “vegetative” added for clarityComment received on proximity of controlled burns and setback distances; No change as setback distances in rule were set by Session Law 2011-394Comment received that revision to (b)(12) deletes restrictions of (b)(2) that serve as safeguards for protecting public health; Language proposed to be deleted was restored 02D .1904Commenter questioned why definition for “100 percent wood waste” differs from federal rule, noted .1904(d)(1) should reference (b)(6) instead of (d)(5), and questioned reference to incorporation into SIP under Clean Air Act Section 110; Language restored/revised to include restrictions in .1903 (b)(12) and definitions for “100 percent wood waste” and “100 percent yard waste” revised for consistency with federal requirements and after revising language to provide definition of “clean lumber”, reference to subparagraph (b)(7) corrected and unnecessary references to 111(d)/129 state plan submissions were also removedNo changes to the regulatory impact analysis were made as a result of any of the responses to comment.Department of Environmental Quality12

Hearing Officer Recommendation The Hearing Officer recommends that the proposed readoption of 15A NCAC 02D .0540, .1800 and .1900 as presented in Chapter II and the regulatory impact analysis in Chapter VI of this hearing report, with the revisions noted above, be adopted by the Environmental Management Commission. Department of Environmental Quality 13

Contact Department of Environmental Quality Joelle Burleson, EIT, CPM Senior Regulatory Advisor Division of Air Quality, Planning Section North Carolina Department of Environmental Quality  919 707 8720    officejoelle.burleson@ncdenr.gov14

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