August 2,2010 Stanley A. Meiburg, Acting Regional Administrator US 

### EPA, Region 4 Sam Nun11 Atlanta Federal Center 

### 61 13'orsytli Street, 

### SW Atlanta, Georgia 30303 Dear Mr. Meiburg: 111 the preamble to the June 3, 2010 Greenhouse Gas Tailoring Rule, USEPA I-cquestcdthat 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 ofthe federal PSI) program as of a specific date of the Federal Guideline rules. TheNorth Carolinarules adopt by reference the 2007 definition ofthe term "regulated 

### NSR pollutant." See40 CFR 5lal66(b)(4).As a result, theNorth 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 10012.50tpy 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 tlxNSR 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 Sollowingthe inclusion of greenliousc gases. To address this situation,North Carolina has begun its rulciiialciiigprocess to incorporate by reference the federal greenhouse gastailoring provisions in a new 

### PSD rule specificto greenhouse gases, 

### 15ANCAC 02D .0544, Prevention of SignificantDeterioration 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%-715-7475i lnierx?i: www.ncair,ilrg Ai? Equal OpportunityyiAffirma1ii~c~ Action Ernpioye;Meiburg August 2, 2010 Page 2 of 2

@ 8116/2010 Notice appears in the North Carolina Register

@ 813 1 I2010 Public Hearing

@ 10115/2010 Close of Comment period

@ 1111 8/20 1 0 Enviroiimental Management Cornmission action 12116/2010 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, 2011. 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 2011. 

### Ifthe 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 2011, unless abill 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