August 2,201 0 

Stanley A. Meiburg, 

Acting Regional Administrator 

US EPA, Region 4 

Sam Nun11 Atlanta Federal Center 

6 1 13'orsytli Street, SW 

Atlanta, Georgia 30303 

Dear Mr. Meiburg: 

111 the preamble to the June 3, 2010 Greenhouse Gas Tailoring Rule, USEPA I-cquestcd that 

each state submit a letter informing EPA of its plans for implcrnclltatioil of tlie June 3, 2010 rulc. 

North Carolilia operates an approved New Source Rcvicw (NSR) pcrmit program and a title V 

permit prograin under an approved title V iinpleinentatioii plan. 

North Carolina's currcilt Preveiltion of Sigiiilicant Deterioration (PSD) rule, 15A NCAC 

02D .0530, incorporates many of the provisioix of the federal PSI) program as of a specific date of 

the Federal Guideline rules. The North Carolina rules adopt by reference the 2007 definition ofthe 

term "regulated NSR pollutant." See 40 CFR 5 lal66(b)(4). As a result, the North Carolina rulc 

does not automatically incorporate the recent greenhouse gas tailoring provisions. North Carolina 

interprets its PSD regulation to provide that individual greenhouse gases will become regulated 

NSR pollutants when they are subject to actual control. Absent North Carolina revising its rulc 

consistent with the Federal Tailoring rule, the iiiajor source threshold will remain at 10012.50 tpy 

and tlie significant einissioii increase for individual grccrihousc gases will be zero for existing 

major sources. 

With respect to Title V provisions, North Carolina's Title V permitting rules incorporatc 

by reference the definition of major source as containcd at 40 CFR 70.2. Unlike tlx NSR 

regulation discussed above, this CFR reference automatically includes any later amendments. 

North Carolina would have to review its regulations, including Title V permit fees, to ensure 

sufficient resources to implement the Title V permit program Sollowing the inclusion of 

greenliousc gases. 

To address this situation, North Carolina has begun its rulciiialciiig process to incorporate 

by reference the federal greenhouse gas tailoring provisions in a new PSD rule specific to 

greenhouse gases, 15A NCAC 02D .0544, Prevention of Significant Deterioration Requirements 

for Greenhouse Gases. The schedule for completion of this ruleiiialcing is as follows. 

164: Mail Service Center, Raleigh, Pdoiih Cs:^olir~a 2'?6%-l!Y.l 

2728 Capital Blvd.: Raleigh, NC 27604 

Phone: 9: 9-733-3340 1 FAX 9%-715-7475 i lnierx?i: www.ncair,ilrg 

Ai? Equal OpportunityyiAffirma1ii~c~ Action Ernpioye; 
Meiburg 

August 2, 2010 

Page 2 of 2 

@ 811 6/20 10 Notice appears in the North Carolina Register 

@ 813 1 I20 10 Public Hearing 

@ 1 011 5/20 10 Close of Comment period @ 1 11 1 8/20 1 0 Enviroiimental Management Cornmission action 

1211 6/20 10 Rules Review Coinnlission action 

@ 1/2/2011 Earliest Rule Effective date 

As reflected above under tlie current rulernaking schedule, the earliest tlie state greenhouse 

gas tailoring rule can become effective is January 2, 201 1. If letters of objection are received per 

the State Administrative Procedures Act, the tailoring rule will be forwarded to the next session of 

the legislature which begins in January 201 1. If the legislature chooses to introduce a bill regarding 

the rule, tlie earliest the rule would become effective would be the end of the legislative session, 

whicli could be suin~ncr 201 1, unless a bill is ratified that specifies another effective date. 

If you have any questions regarding this matter, please contact me or Joelle Burleson at 

(919) 733-1474. 

Sincerely, 

Sheila C. Holman