B-1

1 Additional EPA Comments

2

3 15A NCA 02D .0530 is proposed for amendment with changes as follows:

4

5 15A NCAC 02D .0530 PREVENTION OF SIGNIFICANT DETERIORATION

6 (a) The purpose of the Rule is to implement a program for the prevention of significant deterioration of air quality 

7 as required by 40 CFR 51.166. 

8 (b) For the purposes of this Rule the definitions contained in 40 CFR 51.166(b) and 40 CFR 51.301 apply except 

9 the definition of "baseline actual emissions." For the purposes of this Rule:

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

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

12 Subparagraph:

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

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

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

16 immediately preceding the date that a complete permit application is received by the 

17 Division for a permit required under this Rule. The Director shall allow a different time 

18 period, not to exceed 10 years immediately preceding the date that a complete permit 

19 application is received by the Division, if the owner or operator demonstrates that it is 

20 more representative of normal source operation. For the purpose of determining baseline 

21 actual emissions, the following apply:

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

23 emissions associated with startups, shutdowns, and malfunctions;

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

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

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

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

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

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

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

31 attainment demonstration or maintenance plan consistent with the requirements 

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

33 maximum achievable control technology standard that the Administrator 

34 proposed or promulgated under part 63 of the Code of Federal Regulations, the 

35 baseline actual emissions shall be adjusted to account for such emission 

36 reductions;

ATTACHMENT B
B-2

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

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

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

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

5 only one consecutive 24-month period shall be used to determine the baseline 

6 actual emissions for all the emissions units being changed. A different 

7 consecutive 24-month period for each regulated NSR pollutant can be used for 

8 each regulated NSR pollutant; and

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

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

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

12 this Part;

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

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

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

16 emit; and

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

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

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

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

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

22 51.166(b)(3)(ii) is seven years;

23 (3) The limitation specified in 40 CFR 51.166(b)(15)(ii) does not apply; and

24 (4) Particulate matter PM2.5 significant levels in 40 CFR 51.166(b)(23)(i) are incorporated by 

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

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

27 exceed 140 tons per year. Sulfur dioxide and nitrogen oxides are precursor to PM2.5 in all 

28 attainment and unclassifiable areas. Volatile organic compounds and ammonia are not significant 

29 precursors to PM2.5.

30 (c) All areas of the State are classified as Class II except that the following areas are Class I:

31 (1) Great Smoky Mountains National Park;

32 (2) Joyce Kilmer Slickrock National Wilderness Area;

33 (3) Linville Gorge National Wilderness Area;

34 (4) Shining Rock National Wilderness Area; and

35 (5) Swanquarter National Wilderness Area.

36 (d) Redesignations of areas to Class I or II may be submitted as state proposals to the Administrator of the 

37 Environmental Protection Agency (EPA), if the requirements of 40 CFR 51.166(g)(2) are met. Areas may be 

ATTACHMENT B
B-3

1 proposed to be redesignated as Class III, if the requirements of 40 CFR 51.166(g)(3) are met. Redesignations may 

2 not, however, be proposed which would violate the restrictions of 40 CFR 51.166(e). Lands within the boundaries of 

3 Indian Reservations may be redesignated only by the appropriate Indian Governing Body.

4 (e) In areas designated as Class I, II, or III, increases in pollutant concentration over the baseline concentration shall 

5 be limited to the values set forth in 40 CFR 51.166(c). However, concentration of the pollutant shall not exceed 

6 standards set forth in 40 CFR 51.166(d).

7 (f) Concentrations attributable to the conditions described in 40 CFR 51.166(f)(1) shall be excluded in determining 

8 compliance with a maximum allowable increase. However, the exclusions referred to in 40 CFR 51.166(f)(1)(i) or 

9 (ii) shall be limited to five years as described in 40 CFR 51.166(f)(2).

10 (g) Major stationary sources and major modifications shall comply with the requirements contained in 40 CFR 

11 51.166(i) and (a)(7) and by extension in 40 CFR 51.166(j) through (o) and (w). The transition provisions allowed by 

12 40 CFR 52.21 (i)(11)(i) and (ii) and (m)(1)(vii) and (viii) are hereby adopted under this Rule. The minimum 

13 requirements described in the portions of 40 CFR 51.166 referenced in this Paragraph are hereby adopted as the 

14 requirements to be used under this Rule, except as otherwise provided in this Rule. Wherever the language of the 

15 portions of 40 CFR 51.166 referenced in this Paragraph speaks of the "plan," the requirements described therein 

16 shall apply to the source to which they pertain, except as otherwise provided in this Rule. Whenever the portions of 

17 40 CFR 51.166 referenced in this Paragraph provide that the State plan may exempt or not apply certain 

18 requirements in certain circumstances, those exemptions and provisions of nonapplicability are also hereby adopted 

19 under this Rule. However, this provision shall not be interpreted so as to limit information that may be requested 

20 from the owner or operator by the Director as specified in 40 CFR 51.166(n)(2).

21 (h) New natural gas-fired electrical utility generating units for which cost recovery is sought pursuant to G. S. 62-

22 133.6 shall install best available control technology for NOX and SO2, regardless of applicability of the rest of this 

23 Rule.

24 (i) 40 CFR 51.166(w)(10)(iv)(a) is changed to read: "If the emissions level calculated in accordance with Paragraph 

25 (w)(6) of this Section is equal to or greater than 80 percent of the PAL [plant wide applicability limit] level, the 

26 Director shall renew the PAL at the same level." 40 CFR 51.166(w)(10)(iv)(b) is not incorporated by reference.

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

28 operator of the sources to which this Rule applies shall apply for and receive a permit as required in 15A NCAC 

29 02Q .0300 or .0500.

30 (k) When a particular source or modification becomes a major stationary source or major modification solely by 

31 virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of 

32 the source or modification to emit a pollutant, such as a restriction on hours of operation, then the provisions of this 

33 Rule shall apply to the source or modification as though construction had not yet begun on the source or 

34 modification.

35 (l) The provisions of 40 CFR 52.21(r)(2) regarding the period of validity of approval to construct are incorporated 

36 by reference except that the term "Administrator" is replaced with "Director".

Comment [A1]: Please also include the following 

statement “and section (v) of this rule” for PM 

increments.

ATTACHMENT B
B-4

1 (m) Volatile organic compounds exempted from coverage in 40 CFR 51.100(s) shall be exempted when calculating 

2 source applicability and control requirements under this Rule.

3 (n) The degree of emission limitation required for control of any air pollutant under this Rule shall not be affected 

4 by:

5 (1) that amount of a stack height, not in existence before December 31, 1970, that exceeds good 

6 engineering practice; or

7 (2) any other dispersion technique not implemented before then.

8 (o) A substitution or modification of a model as provided for in 40 CFR 51.166(l) is subject to public comment 

9 procedures in accordance with the requirements of 40 CFR 51.102.

10 (p) Permits may be issued on the basis of innovative control technology as set forth in 40 CFR 51.166(s)(1) if the 

11 requirements of 40 CFR 51.166(s)(2) have been met, subject to the condition of 40 CFR 51.166(s)(3), and with the 

12 allowance set forth in 40 CFR 51.166(s)(4).

13 (q) If a source to which this Rule applies impacts an area designated Class I by requirements of 40 CFR 51.166(e), 

14 notice to EPA shall be provided as set forth in 40 CFR 51.166(p)(1). If the Federal Land Manager presents a 

15 demonstration described in 40 CFR 51.166(p)(3) during the public comment period or public hearing to the Director 

16 and if the Director concurs with this demonstration, the permit application shall be denied. Permits may be issued on 

17 the basis that the requirements for variances as set forth in 40 CFR 51.166(p)(4), (p)(5) and (p)(7), or (p)(6) and 

18 (p)(7) have been satisfied. Pursuant to 40 CFR 51.166(p)(4) For Class I vVariances, the following are maximum 

19 allowable increases in micrograms per cubic meter over minor source baseline concentration for particulate matter 

20 replace the values in 40 CFR 51.166(p)(4):

Class I variances – Particulate Matter

Indicator Averaging Period micrograms per cubic meter

PM2.5 Annual arithmetic mean 4

PM2.5 24 hour maximum 9

PM10 Annual arithmetic mean 17

PM10 24 hour maximum 30

21

22 (r) A permit application subject to this Rule shall be processed in accordance with the procedures and requirements 

23 of 40 CFR 51.166(q). Within 30 days of receipt of the application, applicants shall be notified if the application is 

24 complete as to initial information submitted. Commencement of construction before full prevention of significant 

25 deterioration approval is obtained constitutes a violation of this Rule.

26 (s) Approval of an application with regard to the requirements of this Rule does not relieve the owner or operator of 

27 the responsibility to comply with applicable provisions of other rules of this Subchapter or Subchapter 02Q of this 

28 Title and any other requirements under local, state, or federal law.

29 (t) When a source or modification is subject to this Rule the following procedures apply:

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

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

Comment [A2]: Please see our suggestions.

ATTACHMENT B
B-5

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

2 subject to this Rule;

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

4 written notification to all affected Federal Land Managers within 30 days of receiving the permit 

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

6 shall be at least 30 days prior to the publication of notice for public comment on the application. 

7 The notification shall include a copy of all information relevant to the permit application including 

8 an analysis provided by the source of the potential impact of the proposed source on visibility;

9 (3) The Director shall consider any analysis concerning visibility impairment performed by the 

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

11 finds that the analysis of the Federal Land Manager fails to demonstrate to his satisfaction that an 

12 adverse impact on visibility will result in the Class I area, the Director shall provide in the notice 

13 of public hearing on the application, an explanation of his decision or notice as to where the 

14 explanation can be obtained; and

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

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

17 impairment.

18 (u) If the owner or operator of a source is using projected actual emissions to avoid applicability of prevention of 

19 significant deterioration requirements, the owner or operator shall notify the Director of the modification before 

20 beginning actual construction. The notification shall include:

21 (1) a description of the project;

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

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

24 were calculated, including identification of emissions excluded by 40 CFR 51.166(b)(40)(ii)(c);

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

26 were calculated; and

27 (5) any netting calculations if applicable.

28 If upon reviewing the notification, the Director finds that the project will cause a prevention of significant 

29 deterioration evaluation, then the Director shall notify the owner or operator of his findings. The owner or operator 

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

31 required pursuant to this rule, the owner or operator shall maintain records of annual emissions in tons per year, on a 

32 calendar year basis related to the modifications for 10 years following resumption of regular operations after the 

33 change if the project involves increasing the emissions unit's design capacity or its potential to emit the regulated 

34 NSR pollutant; otherwise these records shall be maintained for five years following resumption of regular operations 

35 after the change. The owner or operator shall submit a report to the director within 60 days after the end of each year 

36 during which these records must be generated. The report shall contain the items listed in 40 CFR 51.166(r)(6)(v)(a) 

ATTACHMENT B
B-6

1 through (c). The owner or operator shall make the information documented and maintained under this Paragraph 

2 available to the Director or the general public pursuant to the requirements in 40 CFR 70.4(b)(3)(viii).

3 (v) Increments. For particulate matter, the maximum allowable increase in micrograms per cubic meter over the 

4 baseline concentration for areas classified as Class I, Class II and Class III shall be as follows:

5

Particulate Matter

Indicator Averaging Period Class I Class II Class III

PM2.5 Annual arithmetic mean 1 4 8

PM2.5 24 hour maximum 2 9 18

PM10 Annual arithmetic mean 4 17 34

PM10 24 hour maximum 8 30 60

6

7 1. Pursuant to 40 CFR 51.166(14)(i) the terms “major source baseline date,” minor source baseline date” and 

8 “baseline area” are herein incorporated by reference as of July 20, 2010 for the implementation of the PM 

9 increments.

10 (v)(w) The references to the Code of Federal Regulations (CFR) in this Rule are incorporated by reference unless a 

11 specific reference states otherwise. The version of the CFR incorporated in this Rule is that as of May 16, 2008 at 

12 http://www.gpo.gov/fdsys/pkg/FR-2008-05-16/pdf/E8-10768.pdf [October 20, 2010 at

13 http://www.gpo.gov/fdsys/pkg/FR-2010-10-20/pdf/2010-25132.pdf] and does not include any subsequent 

14 amendments or editions to the referenced material.

15

16 History Note: Authority G.S. 143-215.3(a)(1); 143-215.107(a)(3); 143-215.107(a)(5); 143-215.107(a)(7); 143-

17 215.108(b); 150B-21.6;

18 Eff. June 1, 1981;

19 Amended Eff. December 1, 1992; August 1, 1991; October 1, 1989; July 1, 1988; October 1, 

20 1987; June 1, 1985; January 1, 1985; February 1, 1983;

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

22 effective, whichever is sooner;

23 Amended Eff. ; January 2, 2011; September 1, 2010; May 1, 2008; July 28, 2006; July 

24 1, 1997; February 1, 1995; July 1, 1994.

25

Comment [A3]: Please include the revisions for 

“major source baseline date,” minor source baseline 

date” and “baseline area” relevant to PM2.5 

increments.

Comment [A4]: Suggested language.

ATTACHMENT B