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1 15A NCA 02D .0531 is amended with changes as published in 27:11 NCR 1016-1020 as follows:

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3 15A NCAC 02D .0531 SOURCES IN NONATTAINMENT AREAS

4 (a) For the purpose of this RuleRule, the definitions contained in 40 CFR 51.165(a)(1) and 40 CFR 51.301 apply

5 apply, except the definition of "baseline actual emissions." For the purposes of this Rule:

6 (1) "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated new 

7 source review (NSR) pollutant, as determined in accordance with Parts (A) through (C) of this 

8 Subparagraph:

9 (A) For an existing emissions unit, baseline actual emissions means the average rate, in tons 

10 per year, at which the emissions unit actually emitted the pollutant during any 

11 consecutive 24-month period selected by the owner or operator within the 5-year five 

12 year period immediately preceding the date that a complete permit application is received 

13 by the Division for a permit required under this Rule. The Director shall allow a different 

14 time period, not to exceed 10 years immediately preceding the date that a complete 

15 permit application is received by the Division, if the owner or operator demonstrates that 

16 it is more representative of normal source operation. For the purpose of determining 

17 baseline actual emissions, the following apply:

18 (i) The average rate shall include fugitive emissions to the extent quantifiable, and 

19 emissions associated with startups, shutdowns, and malfunctions;

20 (ii) The average rate shall be adjusted downward to exclude any non-compliant 

21 emissions that occurred while the source was operating above any emission 

22 limitation that was legally enforceable during the consecutive 24-month period;

23 (iii) For an existing emission unit (other than an electric utility steam generating 

24 unit), the average rate shall be adjusted downward to exclude any emissions that 

25 would have exceeded an emission limitation with which the major stationary 

26 source must currently comply. However, if the State has taken credit in an 

27 attainment demonstration or maintenance plan consistent with the requirements 

28 of 40 CFR 51.165(a)(3)(ii)(G) for an emission limitation that is part of a 

29 maximum achievable control technology standard that the Administrator 

30 proposed or promulgated under part Part 63 in Title 40 of the Code of Federal 

31 Regulations, the baseline actual emissions shall be adjusted to account for such 

32 emission reductions;

33 (iv) For an electric utility steam generating unit, the average rate shall be adjusted 

34 downward to reflect any emissions reductions under G.S. 143-215.107D and for 

35 which cost recovery is sought pursuant to G.S. 62-133.6;

36 (v) For a regulated NSR pollutant, when a project involves multiple emissions units, 

37 only one consecutive 24-month period shall be used to determine the baseline 
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1 actual emissions for all the emissions units being changed. A different 

2 consecutive 24-month period can be used for each regulated NSR pollutant; and

3 (vi) The average rate shall not be based on any consecutive 24-month period for 

4 which there is inadequate information for determining annual emissions, in tons 

5 per year, and for adjusting this amount if required by Subparts (ii) and (iii) of 

6 this Part;

7 (B) For a new emissions unit, the baseline actual emissions for purposes of determining the 

8 emissions increase that will result from the initial construction and operation of such unit 

9 shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to 

10 emit; and

11 (C) For a plantwide applicability limit (PAL) for a stationary source, the baseline actual 

12 emissions shall be calculated for existing emissions units in accordance with the 

13 procedures contained in Part (A) of this Subparagraph, and for a new emissions unit in 

14 accordance with the procedures contained in Part (B) of this Subparagraph;

15 (2) In the definition of "net emissions increase," the reasonable period specified in 40 CFR 

16 51.165(a)(1)(vi)(C)(1) is seven years; and

17 (3) Particulate matter PM2.5 significant levels in 40 CFR 51.165(a)(1)(x)(A) are incorporated by 

18 reference except as otherwise provided in this Rule. A net emission increase or the potential of a 

19 source to emit nitrogen oxide emissions shall be significant if the rate of emissions would equal or 

20 exceed 140 tpy. Sulfur dioxide (SO2) and nitrogen oxides (NOx) are precursor precursors to PM2.5

21 in all nonattainment areas. Volatile organic compounds and ammonia are not significant

22 precursors to PM2.5.

23 (b) Redesignation to Attainment. If any county or part of a county to which this Rule applies is later designated in 

24 40 CFR 81.334 as attainment, all sources in that county subject to this Rule before the redesignation date shall 

25 continue to comply with this Rule.

26 (c) Applicability. 40 CFR 51.165(a)(2) is incorporated by reference. This Rule applies to areas designated as 

27 nonattainment in 40 CFR 81.334, including any subsequent amendments or editions. 

28 (d) This Rule is not applicable to:

29 (1) complex sources of air pollution regulated only under Section .0800 of this Subchapter and not 

30 under any other rule in this Subchapter;

31 (2) emission of pollutants at the new major stationary source or major modification located in the 

32 nonattainment area that are pollutants other than the pollutant or pollutants for which the area is 

33 nonattainment. (A major stationary source or major modification that is major for volatile organic 

34 compounds or nitrogen oxides is also major for ozone.);

35 (3) emission of pollutants for which the source or modification is not major;

36 (4) a new source or modification that qualifies for exemption under the provision of 40 CFR 

37 51.165(a)(4); or
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1 (5) emission of compounds listed under 40 CFR 51.100(s) as having been determined to have 

2 negligible photochemical reactivity except carbon monoxide. 

3 (e) 15A NCAC 02Q .0102 and .0302 are not applicable to any source to which this Rule applies. The owner or 

4 operator of the source shall apply for and receive a permit as required in 15A NCAC 02Q .0300 or .0500.

5 (f) To issue a permit to a source to which this Rule applies, the Director shall determine that the source meets the 

6 following requirements:

7 (1) The new major stationary source or major modification will emit the nonattainment pollutant at a 

8 rate no more than the lowest achievable emission rate;

9 (2) The owner or operator of the proposed new major stationary source or major modification has 

10 demonstrated that all major stationary sources in the State that are owned or operated by this 

11 person (or any entity controlling, controlled by, or under common control with this person) are 

12 subject to emission limitations and are in compliance, or on a schedule for compliance that is 

13 federally enforceable or contained in a court decree, with all applicable emission limitations and 

14 standards of this Subchapter that EPA has authority to approve as elements of the North Carolina 

15 State Implementation Plan for Air Quality;

16 (3) The owner or operator of the proposed new major stationary source or major modification will 

17 obtain sufficient emission reductions of the nonattainment pollutant from other sources in the 

18 nonattainment area so that the emissions from the new major source and any associated new minor 

19 sources will be less than the emissions reductions by a ratio of at least 1.00 to 1.15 for volatile 

20 organic compounds and nitrogen oxides and by a ratio of less than one to one for carbon 

21 monoxide. The baseline for this emission offset shall be the actual emissions of the source from 

22 which offset credit is obtained. Emission reductions shall not include any reductions resulting 

23 from compliance (or scheduled compliance) with applicable rules in effect before the application. 

24 The difference between the emissions from the new major source and associated new minor 

25 sources of carbon monoxide and the emission reductions shall be sufficient to represent reasonable 

26 further progress toward attaining the National Ambient Air Quality Standards. The emissions 

27 reduction credits shall also conform to the provisions of 40 CFR 51.165(a)(3)(ii)(A) through (G) 

28 and (J); and

29 (4) The North Carolina State Implementation Plan for Air Quality is being carried out for the 

30 nonattainment area in which the proposed source is located.

31 (g) New natural gas-fired electrical utility generating units for which cost recovery is sought pursuant to G. S. G.S.

32 62-133.6 shall install lowest achievable emission rate technology for NOX and SO2, regardless of the applicability of 

33 the rest of this Rule.

34 (h) For the purposes of this Rule, 40 CFR 51.165(f) is incorporated by reference except that 40 CFR 

35 51.165(f)(10)(iv)(A) is changed to read: reads: "If the emissions level calculated in accordance with Paragraph (f)(6) 

36 of this Section is equal to or greater than 80 percent of the PAL level, the Director shall renew the PAL at the same 

37 level." 40 CFR 51.165(f)(10)(iv)(B) is not incorporated by reference.
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1 (i) When a particular source or modification becomes a major stationary source or major modification solely by 

2 virtue of a relaxation in any enforceable limitation established after August 7, 1980, on the capacity of the source or 

3 modification to emit a pollutant, such as a restriction on hours of operation, then the provisions of this Rule shall 

4 apply to the source or modification as though construction had not yet begun on the source or modification.

5 (j) To issue a permit to a source of a nonattainment pollutant, the Director shall determine, in accordance with 

6 Section 173(a)(5) of the Clean Air Act and in addition to the other requirements of this Rule, that an analysis 

7 (produced by the permit applicant) of alternative sites, sizes, production processes, and environmental control 

8 techniques for the source demonstrates that the benefits of the source significantly outweigh the environmental and 

9 social costs imposed as a result of its location, construction, or modification. 

10 (k) For the purposes of this Rule, The the provisions of 40 CFR 52.21(r)(2) regarding the period of validity of 

11 approval to construct are incorporated by reference except that the term "Administrator" is replaced with "Director".

12 “Director.”

13 (l) Approval of an application regarding the requirements of this Rule does not relieve the owner or operator of the 

14 responsibility to comply with applicable provisions of other rules of this Chapter and any other requirements under 

15 local, state, or federal law.

16 (m) Except as provided in 40 CFR 52.28(c)(6), for a source or modification subject to this Rule the following 

17 procedures shall be followed: 

18 (1) Notwithstanding any other provisions of this Paragraph, the Director shall, no later than 60 days 

19 after receipt of an application, notify the Federal Land Manager with the U.S. Department of 

20 Interior and U.S. Department of Agriculture of an application from a source or modification 

21 subject to this Rule;

22 (2) The owner or operator of the source shall provide an analysis of the impairment to visibility that 

23 would occur because of the source or modification and general commercial, industrial and other 

24 growth associated with the source or modification;

25 (3) When a source or modification may affect the visibility of a Class I area area, the Director shall 

26 provide written notification to all affected Federal Land Managers within 30 days of receiving the 

27 permit application or within 30 days of receiving advance notification of an application. The 

28 notification shall be given at least 30 days before the publication of the notice for public comment 

29 on the application. The notification shall include a copy of all information relevant to the permit 

30 application application, including an analysis provided by the source of the potential impact of the 

31 proposed source on visibility;

32 (4) The Director shall consider any analysis concerning visibility impairment performed by the 

33 Federal Land Manager if the analysis is received within 30 days of notification. If the Director 

34 finds that the analysis of the Federal Land Manager fails to demonstrate to his the Director’s

35 satisfaction that an adverse impact on visibility will result in the Class I area, the Director shall 

36 provide in the notice of public hearing follow the public hearing process described in 40 CFR 
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1 51.307(a)(3) on the application, application and include an explanation of his the Director’s

2 decision or notice where the explanation can be obtained;

3 (5) The Director shall issue permits only to those sources whose emissions will be consistent with 

4 making reasonable progress, as defined in Section 169A of the Clean Air Act, toward the national 

5 goal of preventing any future, and remedying any existing, impairment of visibility in mandatory 

6 Class I areas when the impairment results from manmade air pollution. In making the decision to 

7 issue a permit, the Director shall consider the cost of compliance, the time necessary for 

8 compliance, the energy and nonair quality environmental impacts of compliance, and the useful 

9 life of the source; and

10 (6) The Director may require monitoring of visibility in or around any Class I area by the proposed 

11 new source or modification when the visibility impact analysis indicates possible visibility 

12 impairment.

13 The requirements of this Paragraph do not apply to nonprofit health or nonprofit educational institutions.

14 (n) If the owner or operator of a source is using projected actual emissions to avoid applicability of nonattainment

15 new source review, the owner or operator shall notify the director Director of the modification before beginning 

16 actual construction. The notification shall include:

17 (1) a description of the project;

18 (2) identification of sources whose emissions could be affected by the project;

19 (3) the calculated projected actual emissions and an explanation of how the projected actual emissions 

20 were calculated, including identification of emissions excluded by 40 CFR 

21 51.165(a)(1)(xxviii)(B)(3);

22 (4) the calculated baseline actual emissions and an explanation of how the baseline actual emissions 

23 were calculated; and 

24 (5) any netting calculations calculations, if applicable.

25 If upon reviewing the notification, the Director finds that the project will cause a nonattainment new source review 

26 evaluation, then the Director shall notify the owner or operator of his or her findings. The owner or operator shall 

27 not make the modification until it has received a permit issued pursuant to this Rule. If a permit revision is not 

28 required pursuant to this Rule, the owner or operator shall maintain records of annual emissions in tons per year

29 years, on a calendar year basis related to the modifications for 10 years years, following resumption of regular 

30 operations after the change if the project involves increasing the emissions unit's design capacity or its potential to 

31 emit the regulated NSR pollutant; otherwise these records shall be maintained for five years following resumption of 

32 regular operations after the change. The owner or operator shall submit a report to the director Director within 60 

33 days after the end of each year during which these records must be generated. The report shall contain the items 

34 listed in 40 CFR 51.165(a)(6)(v)(A) through (C). The owner or operator shall make the information documented and 

35 maintained under this Paragraph available to the Director or and the general public pursuant to the requirements in 

36 40 CFR 70.4(b)(3)(viii).
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1 (o) The reference to the Code of Federal Regulations (CFR) in this Rule are incorporated by reference unless a 

2 specific reference states otherwise. Except for 40 CFR 81.334, the version of the CFR incorporated in this Rule is 

3 that as of May 16, 2008 2008 at http://www.gpo.gov/fdsys/pkg/FR-2008-05-16/pdf/E8-10768.pdf and does not 

4 include any subsequent amendments or editions to the referenced material. The publication may be accessed free of 

5 charge.

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7 History Note: Authority G.S. 143-215.3(a)(1); 143-215.107(a)(5); 143-215.108(b);

8 Eff. June 1, 1981;

9 Amended Eff. December 1, 1993; December 1, 1992; August 1, 1991; December 1, 1989; October 

10 1, 1989; July 1, 1988; October 1, 1987; June 1, 1985; January 1, 1985; February 1, 1983;

11 Temporary Amendment Eff. March 8, 1994 for a period of 180 days or until the permanent rule is 

12 effective, whichever is sooner;

13 Amended Eff. September 1, 2013; January 2, 2011; September 1, 2010; May 1, 2008; May 1, 

14 2005; July 1, 1998; July 1, 1996; July 1, 1995; July 1, 1994.

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