1

15A NCA 02D .0531 is amended with changes as published in 27 :1 1 NCR 10 16

- 10 20 as follows: 1

2

15A NCAC 02D .0531 SOURCES IN NONATTAIN MENT AREAS 3

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

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

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

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

Subparagraph: 8

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

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

consecutive 24

- month period selected by the owner or operator within the 5

- year five 11

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

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

time period, not to exceed 1 0 years immediately preceding the date that a complete 14

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

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

baseline actual emissions , the following apply: 17

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

emissions associated with startups, shutdowns, and malfunctions; 19

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

- compliant 20

emis sions that occurred while the source was operating above any emission 21

limitation that was legally enforceable during the consecutive 24

- month period; 22

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

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

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

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

attainment demonstration or maintenance plan c onsistent with the requirements 27

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

maximum achievable control technology standard that the Administrator 29

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

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

emission reductions; 32

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

downward to reflect any emissions reductions under G.S. 143

- 215.107D and for 34

which cost recovery is sought pursuant to G.S. 62

- 133.6; 35

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

only one consecutive 24

- month period shall be used to determine the baseline 372 actual emissions for all the emissions units being changed. A different 1

consecutive 24

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

(vi) The average rate shall not be based on any consecutive 24

- month period for 3

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

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

this Part; 6

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

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

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

emit; and 10

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

emissions sha ll be calculated for existing emissions units in accordance with the 12

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

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

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

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

(3) Particulate matter PM 2.5 s ignificant levels in 40 CFR 51.165(a)( 1)(x)(A) are incorporated by 17

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

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

exceed 140 tpy. Sulfur diox ide (SO 2 ) and nitrogen oxides (NO

x ) are precursor precursors to PM 2.5 20

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

precursors to PM 2.5

. 22

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

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

continue to comply with this Rule. 25

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

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

(d) This Rule is not applicable to: 28

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

under any other rule in this Subchapter; 30

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

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

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

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

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

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

51.165(a)(4); or 373 (5) emission of compounds listed under 40 CFR 51.100(s) as having been determined to have 1

negligible photochemical reactivity except carbon monoxide. 2

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

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

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

following requirements: 6

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

rate no more than the lowest achievable emission rate; 8

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

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

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

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

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

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

State Implementation Plan for Air Quality; 15

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

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

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

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

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

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

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

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

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

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

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

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

and (J); and 28

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

nonattainment area in which the proposed source is located. 30

(g) New natural gas

- fired electrical utility generating units for which cost recovery is sought pursuant to G. S. G.S. 31

62

- 133.6 sh all install lowest achievable emission rate technology for NO X and SO 2 , regardless of the applicability of 32

the rest of this Rule. 33

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

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

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

level." 40 CFR 51.165(f)(10)(iv)(B) is not i ncorporated by reference. 374

(i) When a particular source or modification becomes a major stationary source or major modification solely by 1

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

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

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

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

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

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

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

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

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

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

“Director.” 12

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

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

local, state, or federal law. 15

(m) Exce pt as provided in 40 CFR 52.28(c)(6), for a source or mo dification subject to this Rule the following 16

procedures shall be followed: 17

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

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

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

subject to this Rule; 21

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

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

growth associated with the source or modification; 24

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

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

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

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

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

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

proposed source on visibility; 31

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

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

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

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

provide in the notice of public hearing follow the public hearing process descr ibed in 40 CFR 365 51.307(a)(3) on the application, application and include an explanation of his the Director’s 1

decision or notice where the explanation can be obtained; 2

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

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

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

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

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

compliance, the energy and nonair q uality environmental impacts of compliance, and the useful 8

life of the source; and 9

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

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

impairment. 12

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

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

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

actual construction. The notification shall include: 16

(1) a description of the project; 17

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

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

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

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

(4) the calculated baseli ne actual emissions and an explanation of how the baseline actual em issions 22

were calculated; and 23

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

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

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

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

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

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

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

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

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

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

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

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

40 CFR 70.4(b)(3)(viii). 366

(o) The reference to the Code of Federal Regulations (CFR) in this Rule are incorporated by reference unless a 1

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

that as of May 16, 2008 2008 at ht tp://www.gpo.gov/fdsys/pkg/FR

- 2008

- 05

- 16/pdf/E8

- 10768.pdf and does not 3

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

charge. 5

6

History Note: Authority G.S. 143

- 215.3(a)(1); 143

- 215.107(a)( 5); 143

- 215.108(b); 7

Eff. June 1, 1981; 8

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

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

Temporary Amendment Eff. March 8, 199 4 for a period of 180 days or until the permanent rule is 11

effective, whichever is sooner; 12

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

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

15