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Department of Environmental Quality Group 5 Air Quality Rules Readoption Hearing Report Environmental Management Commission Meeting – September 12, 2019

Rule Groups & Anticipated General Timing Tentative Rule Readoption Schedule (Subject to Change) Group Rules* Stakeholder Meeting Target EMC Adoption102D .0100, .0200, .0300, .0400, .1300, .2000, .2200, .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 2019Adopted: 7/11/2019Effective: 9/1/2019502D .0600, .2100, 2300#, .2600June 28, 2018Fall 2019602D .0500, .0900, .1000**, .1400June 24, 2019Summer/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. 2

H74 Group 5 Rules Monitoring, Reporting, Recordkeeping 15A NCAC 02D .0600, Monitoring: Recordkeeping: Reporting NC Risk Management Program Rules (CAA Section 112(r))15A NCAC 02D .2100, Risk Management ProgramNC Source Testing Rules15A NCAC 02D .2600, Source Testing06/28/2018 Stakeholder Meeting07/13/2018 Stakeholder Comments Due01/09/2019 Draft Rules to Air Quality Committee (AQC)03/14/2019 Request to Proceed to Hearing to Environmental Management Commission (EMC)Department of Environmental Quality3

H74 Group 5 Rules Updates NC Monitoring, Reporting, Recordkeeping Rules - 15A NCAC 02D .0600 4 Rule Substantive ChangesProcedural Changes15A NCAC 02D .0601 Purpose and ScopeN/AChange in reference format.(Format of references will be updated throughout rules.) 15A NCAC 02D .0602 DefinitionsN/AAdministrative and reference format changes.15A NCAC 02D .0604 Exceptions To Monitoring And Reporting RequirementsN/AAdministrative and technical changes. Clarification that exemption not applicable for poorly operated monitoring system and other rules may override general exemption for < 30 days operation in 12 months period.15A NCAC 02D .0605 General Recordkeeping and Reporting RequirementsN/AClarify Director obligation regarding extension of record retention timeframe15A NCAC 02D .0606 Sources Covered by Appendix P of 40 CFR Part 51 N/AAdministrative and technical changes. Updates to reflect current methods.15A NCAC 02D .0607 Large Wood And Wood-fossil Fuel Combination UnitsN/AAdministrative and technical changes to remove obsolete language and update methods.Department of Environmental Quality

H74 Group 5 Rules Updates NC Monitoring, Reporting, Recordkeeping Rules - 15A NCAC 02D .0600 5 Rule Substantive ChangesProcedural Changes15A NCAC 02D .0608 Other Large Coal or Residual Oil BurnersN/AAdministrative and technical changes. 15A NCAC 02D .0610 Federal Monitoring RequirementsN/AAdministrative and technical changes.15A NCAC 02D .0611 Monitoring Emissions From Other SourcesN/A Administrative and technical changes.15A NCAC 02D .0612 Alternative Monitoring And Reporting ProceduresN/AAdministrative and technical changes. Updates to references to federal methods. Removal of obsolete language for consistency with other readopted rules.15A NCAC 02D .0613 Quality Assurance ProgramN/AAdministrative and technical changes. Update to reflect option of method included in promulgated rule.15A NCAC 02D .0614 Compliance Assurance MonitoringRemoved unnecessary language of Paragraph (g).Administrative and technical changes. Language clarification for consistency with federal language.15A NCAC 02D .0615 DelegationN/AAdministrative change.Department of Environmental Quality

Department of Environmental Quality H74 Group 5 Rules Updates NC Risk Management Program Rules - 15A NCAC 02D .2100 6 RuleSubstantive ChangesProcedural Changes15A NCAC 02D .2101 ApplicabilityN/AAdministrative and technical changes. Updates to rule references, to remove redundant language and outdated requirements and clarify language for consistency with federal requirements in 40 CFR Part 68. 15A NCAC 02D .2102 DefinitionsN/AN/A15A NCAC 02D .2103 RequirementsN/AAdministrative update for consistency with federal rule language.15A NCAC 02D .2104 ImplementationRemoved unnecessary language of Paragraph (b).Administrative and technical changes. Update language for consistency with 40 CFR Part 68, updates to rule references and cross references.

H74 Group 5 Rules Recent Federal Activity on Risk Management Program (RMP) Rules (CAA Section 112(r)) January 13, 2017 final rule changes publication January 26, 2017 first regulatory freeze (one week)March 16, 2017 second regulatory freeze (90 days)June 14, 2017 third regulatory freeze (20 months)May 30, 2018 EPA proposed to rescind amendmentsAugust 17, 2018 U.S. Court of Appeals for the District of Columbia Circuit decision vacating the third regulatory freezeSeptember 21, 2018 Mandate issued making 2017 amendments effectiveDecember 3, 2018 EPA published rule change into the Code of Federal Regulations making the January 13, 2017 RMP amendments rule effective EPA’s next action to rescind amendments expected to be released sometime this fallAdjustment to NC rule not needed at this time Department of Environmental Quality7

Department of Environmental Quality H74 Group 5 Rules Updates NC Banking Emission Reduction Credits Rules – 15 NCAC 02D .2300 Rule Substantive ChangesProcedural Changes15A NCAC 02D .2301 Purpose N/AAdministrative and technical changes.15A NCAC 02D .2302 DefinitionsN/AAdministrative and technical changes. 15A NCAC 02D .2303 Applicability and Eligibility Clarifying language to reflect change in attainment status added. Language updated to reflect additional programs have come into existence since rule originally adopted. Administrative change.15A NCAC 02D .2304 Qualification Of Emission Reduction Credits N/A Administrative changes. 15A NCAC 02D .2305 Creating And Banking Emission Reduction CreditsLanguage revised for consistency with readopted 02Q .0303 regarding responsible official.Administrative and technical changes. Update to formatting.15A NCAC 02D .2306 Duration Of Emission Reduction Credits N/ADuplicative language removed. Update to formatting8

Department of Environmental Quality H74 Group 5 Rules Updates NC Banking Emission Reduction Credits Rules – 15 NCAC 02D .2300 Rule Substantive ChangesProcedural Changes15A NCAC 02D .2308NAAdministrative change.15A NCAC 02D .2309Language revised for clarification.NA15A NCAC 02D .2310Clarification of language.. Administrative changes and updates of formatting.15A NCAC 02D .2311N/ARemoval of unnecessary language. 9RuleSubstantive ChangesProcedural Changes15A NCAC 02D .2307 Use Of Emission Reduction CreditsUnnecessary language eliminated because PSD program itself precludes use of credits in a netting demonstration.Administrative and technical changes. Update to formatting.15A NCAC 02D .2308 Certificates and Registry N/AAdministrative change.15A NCAC 02D .2309 Transferring Emission Reduction Credits N/ALanguage revised for clarification.15A NCAC 02D .2310 Revocation And Changes Of Emission Reduction CreditsN/AAdministrative changes and updates of formatting. Clarification of language. 15A NCAC 02D .2311 MonitoringN/ARemoval of unnecessary language.

Department of Environmental Quality H74 Group 5 Rules Updates NC Source Testing Rules – 15 NCAC 02D .2600 RuleSubstantive ChangesProcedural Changes 15A NCAC 02D .2601 Purpose And Scope Specify 45-day in advance testing submittal of requests to use new/alternative test methods. Added reference to QA/QC requirements for audit samples.Administrative and technical changes. Update format/list of exceptions. Update format of Rule citations.15A NCAC 02D .2602 General Provisions on Test Methods and ProceduresSeeking comment on Paragraph (f) requirement for submittal of test report within 30 days after sampling. Added requirement to submit signed compliance statement with test report. Added information to be submitted for noncompliant test reports. Remove vague language regarding demonstrating deviation from specified method is appropriate.Administrative and technical changes. Rearrangement of paragraphs. Update format of Section and Rule citations.15A NCAC 02D .2603 Testing Protocol Specify additional information to be included in testing protocol. N/A. 15A NCAC 02D .2604 Number of Test PointsN/AAdministrative and technical changes. Updates to formatting. Replace term “breach” with term “duct”.15A NCAC 02D .2605 Velocity and Volume Flow RateN/AAdministrative and technical changes. Update to formatting.10

Department of Environmental Quality H74 Group 5 Rules Updates NC Source Testing Rules – 15 NCAC 02D .2600 11 RuleSubstantive ChangesProcedural Changes15A NCAC 02D .2606 Molecular WeightN/A Update to formatting.15A NCAC 02D .2607 Determination of Moisture ContentN/AN/A15A NCAC 02D .2608 Number of Runs and Compliance DeterminationClarification that tests must be done for each operating condition and be three consecutive tests.N/A15A NCAC 02D .2609 Particulate Testing MethodsAdd subparagraph for existing equation, revise format of equation and clarify associated definitions. Move portion of paragraph to new subparagraph. Add Method 202.Update format.15A NCAC 02D .2610 OpacityAdd clarification that Method 22 is based on time that emissions are visible.Update formatting.15A NCAC 02D .2611 Sulfur Dioxide Testing MethodsUpdate reference to ASTM method numbers and remove obsolete methods.Convert potions of paragraphs to subparagraphs. Reorganize paragraphs.

H74 Group 5 Rules Updates NC Source Testing Rules – 15 NCAC 02D .2600 Rule Substantive ChangesProcedural Changes15A NCAC 02D .2612 Nitrogen Oxide Testing MethodsN/AUpdate formatting.15A NCAC 02D .2613 Volatile Organic Compound Testing Methods N/AUpdating reference to ASTM method. Update formatting.15A NCAC 02D .2614 Determination of VOC Emission Control System EfficiencyClarification of requirements.Administrative and technical changes. Rearranging paragraphs. 15A NCAC 02D .2615 Determination of Leak Tightness and Vapor LeaksClarification for consistency with federal language. Reorganization of paragraphs. Updated website reference.Update format of Rule citations. 15A NCAC 02D .2616 FluoridesClarified language. Updated reference to include Methods 26 and 26A.Updated formatting. 15A NCAC 02D .2617 Total Reduced SulfurN/A Updated formatting and language clarification.Department of Environmental Quality12

H74 Group 5 Rules Updates NC Source Testing Rules – 15 NCAC 02D .2600 Rule Substantive ChangesProcedural Changes15A NCAC 02D .2618 MercuryUpdated list of available methods.Updated format to list.15A NCAC 02D .2619 Arsenic, Beryllium, Cadmium, Hexavalent Chromium N/AUpdate of formatting and internet address.15A NCAC 02D .2620 Dioxins And FuransN/AUpdate of formatting and language clarification.15A NCAC 02D .2621 Determination of Fuel Heat Content Using F-factorRevised title to describe calculation of emissions using F Factor. Included reference to .2601(e) specifying Director has 45 days to evaluate alternative methods.Administrative and technical changes. Department of Environmental Quality13

H74 Group 5 Rules Fiscal Note approved by Office of State Budget and Management (OSBM) on November 26, 2018 as having little to no impact on state or local governments and no substantial economic impact. 15A NCAC 02D .2602 has minor impact to private sector in form of preparation and submittal of a written plan for achieving compliance for those sources submitting a non-compliant test report. Cost estimated to be $5,076 per year over the next five years.4 hours labor at $141/hourTotal cost of $564Estimate of total cost derived based on historical average number of NOVs issued per year for a non-compliant test report Written plan starts process of attaining compliance sooner as opposed to waiting for 40-90-day DAQ review period.The plan will reduce time facility is in non-compliance and thus reduce exposure of pollutants to North Carolina citizens.Department of Environmental Quality14

Group 5 Rules Tentative Timing (subject to change) Department of Environmental Quality 3/7/2018 Concept to Air Quality Committee (AQC) 6/28/2018 Stakeholder Meeting1/9/2019 Draft Rules to AQC3/14/2019 Request to Proceed to Comment and Hearing to Environmental Management Commission (EMC) 4/15/2019- Public Comment Period and Hearing 6/14/20199/12/2019 Readoption by EMC10/17/2019 Rules Review Commission Approval11/1/2019 Tentatively Effective15✔✔✔✔✔✔

Hearing Report on H74 Readoption of Group 5 Air Quality Rules Hearing: May 22, 2019, Raleigh Hearing Officer: Commissioner Marion DeerhakeComment Period Closed: June 14, 2019No one from the public attended the hearing. Department of Environmental Quality16

H74 Group 5 Rules Comments and Responses Summary 3 sets of comments received from EPA, a local program, and a regulated industry group 15A NCAC 02D .0600, Monitoring: Recordkeeping: Reporting .0606(c) and .0608(e) – EPA requested clarification on the effect of removing the phrase “equally spaced”; Clarifying language added that at least one of the 4 data points must be in each of the 15-minute quadrants of each hour..0614(g) – EPA requested clarification on the effect of removing the paragraph; No change. Paragraph not needed for enforcement by EPA or DAQ..0601 – EPA requested clarification on effect of removing reference to .0912; No change. Reference is unnecessary..0602 – EPA identified typographical and grammatical errors in .0602(1) & (12) & .0614(c); Text revised to address the comment.15A NCAC 02D .2100, Risk Management Program.2104 – Local program recommended that the rule include “delegated authority” in addition to permitting authority for consistency with federal rule ; Language restored to align with federal rule language for risk management plans.15A NCAC 02D .2300, Banking Emission Reduction CreditsNo comments received.Department of Environmental Quality17

H74 Group 5 Rules Comments and Responses Summary 15A NCAC 02D .2600, Source Testing . 2600 – EPA requested clarification on effects of changes to the Director’s discretion to review and approve alternative testing methods; No change. Removal of phrase “may approve” provides certainty to public that alternative methods will be approved if the criteria are met..2608 – EPA asked whether Director still determines an unavoidable and unforeseen event happened to prevent successful third test run; The DAQ restored the words “the Director determines that”..2611 – EPA asked why references to the ASTM test methods have been revised; No change. The methods have either been withdrawn or superseded by ASTM..2611 (f) and (g) – EPA identified cross reference corrections needed; Text revised to address the comment..2615- EPA asked for clarification regarding the effect of including a reference to 49 CFR 180.407 as an alternative to Method 27 for annual certification of leak tightness for tank trucks; Since the DAQ is planning to propose several revisions to the 15A NCAC .0900 VOC rules which affect tank truck leak tightness certification using 15A NCAC 02D .2615, the Hearing Officer, with DAQ support, recommends that any potential revisions to 15A NCAC 02D .2615 be deferred and proposed as part of the Group 6 readoption package.No changes to the regulatory impact analysis were made as a result of any of the comments.Department of Environmental Quality18

Hearing Officer Recommendation The Hearing Officer recommends that the proposed readoption of 15A NCAC 02D .0600, .2100, .2300, and .2600, with the recommended changes by the commenters and the hearing officer, as presented in Chapter II, and the final regulatory impact analysis in Chapter VI of this hearing report be adopted by the Environmental Management Commission. Department of Environmental Quality 19

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.gov20

Department of Environmental Quality 21