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Department of Environmental Quality Proposed Air Quality Rules Readoption Group 4 EMC Meeting November 8 2018 2 Department of Environmental Quality Rule Groups amp Anticipated General Timing Tentative Rule Readoption Schedule Subject to Change ID: 766794

ncac 02d rule rules 02d ncac rules rule environmental 2018 group section 15a department quality permit h74 air energy

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Department of Environmental Quality Proposed Air Quality Rules Readoption, Group 4 EMC Meeting – November 8, 2018

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, 2018Spring 2019End Stakeholder Comments: 2/28/2018502D .0600, .2100, .2600June 28, 2018Spring/Summer 2019602D .0500, .0900, .1000**, .1400Summer/Fall 2018Summer/Fall 201902D .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 .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 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 languageNational Waste and Recycling Association supporting suggested changes to 02D .1800 Department of Environmental Quality4

H74 Group 4 Rules Preliminary Updates NC Fugitive Dust Rule - 15A NCAC 02D .0540 Rule Substantive Changes Procedural Changes15A NCAC 02D .0540 Clarify definitions, exemptions, and requirements for a fugitive dust control plan.Update format of Section and Rule citations.Department of Environmental Quality5

H74 Group 4 Rules Preliminary Updates NC Odor Rules - 15A NCAC 02D .1800 Rule Substantive Changes Procedural Changes15A NCAC 02D .1801 N/AN/A15A NCAC 02D .1802Amend 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 .1803N/AAdministrative and technical changes.15A NCAC 02D .1804N/AN/A15A NCAC 02D .1806Amend 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 .1807N/AAdministrative and technical changes.15A NCAC 02D .1808N/AAdministrative and technical changes.6

7 Receive Complaints If Odor Determination Submit BMP Implement BMP within 30 days Compliance check within 60 days for BMP implementationSubmit Revised BMPIf approvedwithin 30 daysbe in compliance If insufficientwithin 90 daysSubmit permit for control technologyInstall & Operate & be in compliance within 24 months02D .1802 Complaint Process DAQ Completeness check within 30 days,Approval within 90 daysApprox. 240 DaysApprox. 210 DaysApprox. 3 YearsResponse within 30 dayswithin 90 daysIf insufficient within 60 days

H74 Group 4 Rules (Updated) Department of Environmental Quality 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 15A NCAC 02D .1806, as provided in subsection (b) of this section. SECTION 2.(b) Implementation. – Notwithstanding subsection (c) of 15A NCAC 02D .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 15A NCAC 02D .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 15A NCAC 02D .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. 8

H74 Group 4 Rules (Updated) Department of Environmental Quality 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. 9

H74 Group 4 Rules Preliminary Updates 15 NCAC 02D .1806 Department of Environmental Quality 02D .1806 amended to include: 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 15A NCAC 02Q .0300 or .0500 to minimize objectionable odor beyond the property lines.10

H74 Group 4 Rules Preliminary Updates 15 NCAC 02D .1806 Department of Environmental Quality 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 11

02D .1806 Complaint Process 1 st Odor Determination Submit OMP If approved, within 30 daysImplement OMPRevise OMPImplement revised OMPTrigger MFCSubmit Revised OMPImplement Revised OMP Trigger MFCIf insufficient within 30 daysIf approved, within 30 daysIf insufficient within 30 daysImplemented OMPIf insufficient within 30 daysIf approved, within 30 daysWithin 180 daysSubmit Permit for MFCWithin18 monthsInstall & Operate Trigger MFCApprox. 90 DaysApprox.120 DaysApprox.120 DaysApprox. 90 DaysApprox. 90 DaysApprox. 2 yearsIf insufficient, DAQ issues 2nd Odor Determination Within 60 daysWithin 60 days12

H74 Group 4 Rules Preliminary Updates NC Open Burning Rules – 15 NCAC 02D .1900 Rule Substantive Changes Procedural Changes15A NCAC 02D .1901 NAUpdate format of Rule citations.15A NCAC 02D .1902Remove 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 .1903Add clarifying language to several paragraphs. Update language to reflect current proceduresUpdate format of Section and Rule citations.15A NCAC 02D .1904Amend 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 .1905NAUpdate regional office addresses.15A NCAC 02D .1906NAUpdate county office name.15A NCAC 02D .1907NA Update format of Section.13

H74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02D .1904 Department of Environmental Quality 14

H74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02D .1904 Department of Environmental Quality 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. 15

H74 Group 4 Rules Preliminary Updates NC Air Curtain Incinerator Rule – 15 NCAC 02D .1904 Department of Environmental Quality 6 Permitted Air Curtain Incinerators in NC Varying dimensions 10-20 tons per hour maximum burning capacityThroughput ranged from 0 to 3500 tons per year with a total of 4595 tons per year for all 65 operate intermittently and 1 facility has not operated its ACI in the last 3 years16

H74 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. A revised Fiscal Note 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. Department of Environmental Quality17

H74 Group 4 Rules Estimated Total Impact Changes as a Result of S.L. 2018-114 Total Cost Changes Original RIA $0 to $23,064 for first year $0 to $19,839 for subsequent yearsRevised RIA $0 to $3,936 for first year $ 0 to $2,768 for subsequent years Costs Changes on an Individual Permit BasisOriginal RIA (50% of Applicable Fee) $437.50 Permit Application Fee $3,556.50 General Permit Annual FeeRevised RIA (10% of Applicable Fee) $94.70 Permit Application Fee $711.30 General Permit Annual Fee Department of Environmental Quality18

Group 4 Rules Tentative Timing - Updated (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 2/15/20195/9/2019 Readoption by EMC6/20/2019 Rules Review Commission Approval7/1/2019 Tentatively Effective19

H74 Group 4 Rules (Updated) The Director recommends that the Commission approve the proposed readoptions, amendment, and regulatory impact analysis, authorize a public hearing(s), and that the Chairman appoint a member(s) of the Commission to serve as hearing officer(s). Department of Environmental Quality 20

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.gov21

Department of Environmental Quality 22