HomeMy WebLinkAboutAQ_F_0800114_20221011_PRMT_PAD_3851 oft�c STATE aF
ROY COOPER A
Governor
ELIZABETH S.BISER
Secretary *�Af QUAM W°
MICHAELABRACZINSKAS NORTH CAROLINA
Director Environmental Quality
October 11, 2022
Mr. John McNeil
Senior Vice President of Operations
Archaea Energy, Inc.
4444 Westheimer Road, Suite G450
Houston, Texas 77027
Subject: Applicability Determination Request# 3851
Aulander,North Carolina
Bertie County
Fee Class: Title V
PSD Class: Minor
Dear Mr. McNeil:
The NC Division of Air Quality (DAQ) has evaluated the applicability determination
request, dated August 23, 2022, for Lightning Renewables, LLC to be located adjacent to the East
Carolina Regional Solid Waste Landfill(the Landfill) in Aulander,Bertie County,North Carolina.
The letter requested that the DAQ make a determination under the federal Clean Air Act (CAA)
as to whether the Lightning Renewables facility and the East Carolina Regional Solid Waste
Landfill would be considered separate sources for the purposes of the Air Permitting Program.
Based on the applicability determination submittal and a subsequent email dated September
20,2022,the Lightning Renewables facility will be located at 1922B Republican Road,Aulander,
Bertie County,North Carolina on a leased parcel of land. The address of the adjacent landfill(East
Carolina Regional Solid Waste Landfill)is 1922 Republican Road,Aulander,Bertie County,North
Carolina.
The Landfill is privately owned and operated by Republic Services of North Carolina,LLC,
which is an indirect subsidiary of Republic Services, Inc. ("Republic Parent"). The operation of
the landfill produces landfill gas (LFG) which consists primarily of methane, carbon dioxide, and
small amounts of other gases produced by the anaerobic decomposition of solid waste. LFG is
regulated by the New Source Performance Standards for municipal solid waste landfills. The
Landfill has been issued a Title V Operating Permit and uses a gas collection system and two flares
to control the collected landfill gas in compliance with its Title V Permit and applicable regulations.
Lightning Renewables, LLC — East Carolina is a wholly owned subsidiary of Lightning
Renewables, LLC ("Lightning Renewables"). Lightning Renewables is a joint venture between
Zeus Renewables, LLC, a wholly owned indirect subsidiary of Archaea Energy Incorporated
(Archaea Parent)who owns 60 percent, and Republic Services Renewables Energy LLC, a wholly
D EQ�� North Carolina Department of Environmental Quality Division of Air Quality
217 West]ones Street 1 1641 Mail Service Center I Raleigh,North Carolina 27699-1641
NORTH CAROLINA -
oaPanaremarEnvimammhlawlity /`� 919.707.8400
Mr. MacNeil
October 11,2022
Page 2
owned indirect subsidiary of Republic Services Incorporated, who owns 40 percent. See the
Organizational Structure in the flow diagram below.
Organizational Structure
Archaea Energy Inc. Republic Services, Inc.m..*,Republic Services of North Carolina,LLC
(subsidiary of Republic Services.Inc.)
(indirect subsidiary) I r(privately owned)
Zeus Re n wables,LLC Republic Itervices Renewables East Carolina Landfill Gas
Eneray.LLC 40% Collection&Control System-Gas
Blowers/LFG Treatment/flares
\(partnership)
Lightning Renewables LLC,
Ca Delaware LLC company)
Lightning Renewables,LLC Archaea Operating,LLC as
—East Carolina Operator& Construction Mgr.
(indirect subsidiary of Archaea
Energy Inc.)
RNG Processing Facility(converting landfill gas
to pipeline quality gas)
The LFG produced by the East Carolina Regional Landfill has not historically been utilized
for beneficial use. It has been collected by the gas collection and control system and flared. The
proposed renewable natural gas facility will result in a reduction to onsite flaring and reduce the
local air emissions while providing a reliable,non-intermittent, sustainable decarbonizing solution
to displace fossil fuels.
With respect to air emissions, the Landfill is currently subject to sulfur dioxide emissions
(15A NCAC 02D .0516), visible emissions (15A NCAC 02D .0521), hazardous air pollutants
emissions(15A NCAC 02D.I 111)and NMOC emissions(15A NCAC 02D .1700).The Lightning
Renewables, LLC facility will be subject to, at a minimum, sulfur dioxide emissions (15A NCAC
02D .0516), and visible emissions (15A NCAC 02D .0521).
Mr. MacNeil
October 11,2022
Page 3
Legal Authority
North Carolina's State Implementation Plan(SIP)-approved PSD regulation in 15A NCAC
02D .0530 incorporates the federal definition of a"stationary source" as "Any building, structure,
facility, or installation which emits or may emit a regulated NSR pollutant." See §51.166(b)(5).
The same regulation incorporates the definition of"building, structure, facility, or installation,"
as:
All of the pollutant-emitting activities which belong to the same industrial
grouping, are located on one or more contiguous or adjacent properties, and are
under the control of the same person(or persons under common control) except the
activities of any vessel. Pollutant-emitting activities shall be considered as part of
the same industrial grouping if they belong to the same Major Group (i.e., which
have the same two-digit code)as described in the Standard Industrial Classification
Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing
Office stock numbers 4101-0066 and 003-005-00176-0, respectively).
See 40 CFR § 51.166(b)(6)(i).
The following three-prong test is used to determine whether the East Carolina Regional
Solid Waste Landfill and the Lightning Renewables LLC facilities are considered a single
stationary source: (i) do the two facilities belong to the same industrial grouping, (ii) are they
located on one or more contiguous or adjacent properties, and (iii) are they under the control of
the same person or(persons under common control)?
Prong 1: Same Industrial Grouping
In general, pollutant-emitting activities shall be considered as part of the same industrial
grouping if they belong to the same two-digit Standard Industrial Classification (SIC). The SIC
number for the East Carolina Environmental Landfill is 4953 "Refuse Systems" and SIC number
for Lightning Renewables is 4922"Natural Gas Transmissions". Both facilities belong to the same
two-digit SIC code.
EPA has stated that "a support facility analysis is only relevant under the SIC-code
determination."EPA explained that when two activities have different SIC codes,a support facility
analysis may be conducted to determine whether the activities should be treated as having the same
industrial grouping. This process is not required for this analysis because the two-digit SIC
numbers are the same for both facilities.
Prong 2: Contiguous or Adjacent
As stated earlier in this applicability review, the Lightning Renewables facility will be
located at 1922B Republican Road,Aulander, Bertie County,North Carolina on a leased parcel of
land. The address of the landfill(East Carolina Regional Solid Waste Landfill)is 1922 Republican
Road,Aulander,Bertie County,North Carolina. These two properties are contiguous and adjacent.
Mr. MacNeil
October 11,2022
Page 4
Prong 3: Common Control
Generally, common control is determined through ownership (same parent company or
subsidiary of a parent company). Common control can also be established through decision-
making authority of one entity over the other through a contractual obligation or voting shares.
Through the regulatory action, EPA emphasized that the:
"Agency will be guided by the general definition of control used by the Securities
and Exchange Commission (SEC). In SEC considerations of control, control
"means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person (or organization or
association)whether through the ownership of voting shares,contract,or otherwise.
17 CFR 210.1-02(g).....'.
Moreover, through the EPA "Meadowbrook" guidance document2 dated April 30, 2018,
the EPA made it clear that the focus for a common control determination should be based upon:
"the power or authority of one entity to dictate a specific outcome at another
facility...EPA believes the most relevant considerations should be whether entities
have the power to direct the actions of other entities to the extent that they affect
the applicability of and compliance with permitting requirements: e.g., the power
to direct the construction or modification of equipment that will result in emissions
of air pollution; the manner in which such emission units operate; the installation
or operation of pollution control equipment; and monitoring, testing,
recordkeeping, and reporting obligations. On the other hand, common control
considerations should not focus on the power to direct aspects of an entity's
operations that are wholly unrelated to air pollution permitting requirements. If one
entity has power or authority over some aspect of another entity's operations that
would have no impact on pollutant-emitting activities of the stationary source
subject to permitting requirements, EPA does not consider that fact to be relevant
to determining whether the two entities should be considered a single source for air
quality permitting purposes (e.g., one entity providing security for both its facility
and for an adjacent facility belonging to another entity)."
The Archaea parent company and the Republic parent company have entered into a
mutually beneficial arms-length agreement("Master LFG Development Agreement"),pursuant to
which Archaea is to develop, construct and operate a RNG facility to process and treat the landfill
gas ("LFG") collected at the landfill to generate renewable natural gas and renewable natural gas
attributes ("RNG"). Under the terms of the Gas Rights Development Agreement, Lightning
Renewables will own the RNG facility and equipment to process the LFG collected, conveyed,
and delivered by the landfill to the demarcation point("Delivery Point").
'Requirements for Preparation,Adoption,and Submittal of Implementation Plans;Emission Offset Interpretive Ruling,45 FR 59874,September
11,1980.
'Letter from William L.Wehrum,Assistant Administrator,U.S.Environmental Protection Agency,Office of Air and Radiation,to the Honorable
Patrick McDonnell,Sec'y of the Pennsylvania Department of Environmental Protection(April 30,2018).
Mr. MacNeil
October 11,2022
Page 5
The landfill owner will continue to operate its collection and control system under its exclusive
ownership and operation; therefore, Lightning Renewables (including any of its affiliates) are
notable to make decisions regarding the operation of the landfill owner's pollution control
equipment. The landfill and the RNG facility have a single point of connection,the Delivery Point,
at which location the two separately owned systems become interconnected to facilitate the flow
of LFG. However,the two systems remain under separate ownership, and control at all times. The
structure of the arms-length Master Development Agreement, Master Engineering, Procurement
and Construction Management Agreement, and the Master Operating and Asset Management
Agreement do not amount to"control". The concept of"control"includes only the power to dictate
a particular outcome and does not include the mere ability to influence. The Board has agreed to
delegate all construction & O&M obligations to the operator, Archaea Operating, LLC which is a
wholly owned subsidiary of Archaea Energy, Inc. The two entities and their respective parent
companies(Republic Parent&Archaea Parent), do not share common payroll activities,employee
benefits, health plans, retirement funds, insurance coverage or other administrative functions.
Archaea Parent holds indirectly sixty percent (60%) ownership, and the Republic parent holds
indirectly forty percent(40%) interest in the company.Neither the landfill owner nor the Republic
parent (including any of its affiliates) have decision-making authority relating to the operation of
the RNG facility's pollution control equipment,which authority has been delegated to the operator.
The landfill and the RNG facility do not share any equipment or pollution control equipment. The
company and operator are expressly prohibited from interfering with the landfill owner's operation
of the landfill. The landfill owner and operator currently operate independently under Title V
Permit No. 08849T08 and comply with applicable New Source Performance Standards,Maximum
Achievable Control Technology and other regulatory requirements without the RNG facility as an
end user.The Gas Rights Development Agreement dictates that the landfill owner retains exclusive
control and responsibility of the collection system, including, without limitation, compliance with
all applicable laws and permits relating to emissions on the landfill and the collection system. The
Landfill owner retains its ability to divert the LFG to its flares for compliance purposes. The
landfill owner shall have responsibility for any and all other aspects of the ownership, operation,
management and maintenance of the landfill facilities and emissions sources other than those
related to the RNG facilities.
Based on the submittal by Lightning Renewables, LLC, both the East Carolina Regional
Landfill and Lightning Renewables, LLC —East Carolina are separate, privately held companies.
Neither entity has the ability to exert decision-making authority over the other facility to take a
specific course of action. Moreover, neither entity will own any production equipment or real
property at the site. The primary reason for locating the facilities in close proximity is convience.
With regard to CAA compliance or permitting requirements, East Carolina Regional
Landfill emissions levels are determined solely from the anaerobic decomposition of solid waste
in the landfill. DAQ believes that Lightning Renewables, LLC — East Carolina may somewhat
"influence"the landfill,but it does not"control"the renewable energy facility with respect to how
its pollution-generating and pollution-controlling equipment operate, and to independently decide
whether it expands its operations or not.
Mr. MacNeil
October 11,2022
Page 6
Similarly, whether Lightning Renewables, LLC contractually purchases the landfill gas or not, it
is the landfill's responsibility to comply with its current regulatory requirements.
Finally, EPA has expressed that when a land development company leases a parcel of land
to industrial companies, the development company is not responsible for obtaining an operating
permit for the entire site. As previouly stated, Lightning Renewables, LLC leases a parcel of land
for the location of this facility.
Based on the above rationalizations,DAQ determines that neither facility will have control
over decisions that affect the applicability of, or compliance with relevant air pollution regulatory
requirements; thus, DAQ concludes that these facilities do not "control" each other.
Conclusions
Pursuant to NC's SIP-approved PSD Program (15A NCAC 02D .0530), the DAQ
concludes that Lightning Renewables, LLC — East Carolina and the East Carolina Regional Solid
Waste Landfill are not a single stationary source, and they are two separate stationary sources for
CAA permitting.
If you have any questions concerning this matter, please contact Booker T. Pullen, at 919-
707-8469 or booker.pullen@ncdenr.gov.
Sincerely yours,
/%kA
Mark J. Cuilla, EIT, CPM, Chief,Permitting Section
Division of Air Quality,NCDEQ
c: Betsy Huddleston, Washington Regional Office
Laserfiche
Emily Zambuto, Archaea Energy, Inc.
Nevin Edwards, Archaea Energy, Inc.
Kristen Fan, Archaea Energy, Inc.
oft�c STATE aF
ROY COOPER A
Governor
ELIZABETH S.BISER
Secretary *�Af QUAM W°
MICHAELABRACZINSKAS NORTH CAROLINA
Director Environmental Quality
October 11, 2022
Mr. John McNeil
Senior Vice President of Operations
Archaea Energy, Inc.
4444 Westheimer Road, Suite G450
Houston, Texas 77027
Subject: Applicability Determination Request# 3851
Aulander,North Carolina
Bertie County
Fee Class: Title V
PSD Class: Minor
Dear Mr. McNeil:
The NC Division of Air Quality (DAQ) has evaluated the applicability determination
request, dated August 23, 2022, for Lightning Renewables, LLC to be located adjacent to the East
Carolina Regional Solid Waste Landfill(the Landfill) in Aulander,Bertie County,North Carolina.
The letter requested that the DAQ make a determination under the federal Clean Air Act (CAA)
as to whether the Lightning Renewables facility and the East Carolina Regional Solid Waste
Landfill would be considered separate sources for the purposes of the Air Permitting Program.
Based on the applicability determination submittal and a subsequent email dated September
20,2022,the Lightning Renewables facility will be located at 1922B Republican Road,Aulander,
Bertie County,North Carolina on a leased parcel of land. The address of the adjacent landfill(East
Carolina Regional Solid Waste Landfill)is 1922 Republican Road,Aulander,Bertie County,North
Carolina.
The Landfill is privately owned and operated by Republic Services of North Carolina,LLC,
which is an indirect subsidiary of Republic Services, Inc. ("Republic Parent"). The operation of
the landfill produces landfill gas (LFG) which consists primarily of methane, carbon dioxide, and
small amounts of other gases produced by the anaerobic decomposition of solid waste. LFG is
regulated by the New Source Performance Standards for municipal solid waste landfills. The
Landfill has been issued a Title V Operating Permit and uses a gas collection system and two flares
to control the collected landfill gas in compliance with its Title V Permit and applicable regulations.
Lightning Renewables, LLC — East Carolina is a wholly owned subsidiary of Lightning
Renewables, LLC ("Lightning Renewables"). Lightning Renewables is a joint venture between
Zeus Renewables, LLC, a wholly owned indirect subsidiary of Archaea Energy Incorporated
(Archaea Parent)who owns 60 percent, and Republic Services Renewables Energy LLC, a wholly
D EQ�� North Carolina Department of Environmental Quality Division of Air Quality
217 West]ones Street 1 1641 Mail Service Center I Raleigh,North Carolina 27699-1641
NORTH CAROLINA -
oaPanaremarEnvimammhlawlity /`� 919.707.8400
Mr. MacNeil
October 11,2022
Page 2
owned indirect subsidiary of Republic Services Incorporated, who owns 40 percent. See the
Organizational Structure in the flow diagram below.
Organizational Structure
Archaea Energy Inc. Republic Services, Inc.m..*,Republic Services of North Carolina,LLC
(subsidiary of Republic Services.Inc.)
(indirect subsidiary) I r(privately owned)
Zeus Re n wables,LLC Republic Itervices Renewables East Carolina Landfill Gas
Eneray.LLC 40% Collection&Control System-Gas
Blowers/LFG Treatment/flares
\(partnership)
Lightning Renewables LLC,
Ca Delaware LLC company)
Lightning Renewables,LLC Archaea Operating,LLC as
—East Carolina Operator& Construction Mgr.
(indirect subsidiary of Archaea
Energy Inc.)
RNG Processing Facility(converting landfill gas
to pipeline quality gas)
The LFG produced by the East Carolina Regional Landfill has not historically been utilized
for beneficial use. It has been collected by the gas collection and control system and flared. The
proposed renewable natural gas facility will result in a reduction to onsite flaring and reduce the
local air emissions while providing a reliable,non-intermittent, sustainable decarbonizing solution
to displace fossil fuels.
With respect to air emissions, the Landfill is currently subject to sulfur dioxide emissions
(15A NCAC 02D .0516), visible emissions (15A NCAC 02D .0521), hazardous air pollutants
emissions(15A NCAC 02D.I 111)and NMOC emissions(15A NCAC 02D .1700).The Lightning
Renewables, LLC facility will be subject to, at a minimum, sulfur dioxide emissions (15A NCAC
02D .0516), and visible emissions (15A NCAC 02D .0521).
Mr. MacNeil
October 11,2022
Page 3
Legal Authority
North Carolina's State Implementation Plan(SIP)-approved PSD regulation in 15A NCAC
02D .0530 incorporates the federal definition of a"stationary source" as "Any building, structure,
facility, or installation which emits or may emit a regulated NSR pollutant." See §51.166(b)(5).
The same regulation incorporates the definition of"building, structure, facility, or installation,"
as:
All of the pollutant-emitting activities which belong to the same industrial
grouping, are located on one or more contiguous or adjacent properties, and are
under the control of the same person(or persons under common control) except the
activities of any vessel. Pollutant-emitting activities shall be considered as part of
the same industrial grouping if they belong to the same Major Group (i.e., which
have the same two-digit code)as described in the Standard Industrial Classification
Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing
Office stock numbers 4101-0066 and 003-005-00176-0, respectively).
See 40 CFR § 51.166(b)(6)(i).
The following three-prong test is used to determine whether the East Carolina Regional
Solid Waste Landfill and the Lightning Renewables LLC facilities are considered a single
stationary source: (i) do the two facilities belong to the same industrial grouping, (ii) are they
located on one or more contiguous or adjacent properties, and (iii) are they under the control of
the same person or(persons under common control)?
Prong 1: Same Industrial Grouping
In general, pollutant-emitting activities shall be considered as part of the same industrial
grouping if they belong to the same two-digit Standard Industrial Classification (SIC). The SIC
number for the East Carolina Environmental Landfill is 4953 "Refuse Systems" and SIC number
for Lightning Renewables is 4922"Natural Gas Transmissions". Both facilities belong to the same
two-digit SIC code.
EPA has stated that "a support facility analysis is only relevant under the SIC-code
determination."EPA explained that when two activities have different SIC codes,a support facility
analysis may be conducted to determine whether the activities should be treated as having the same
industrial grouping. This process is not required for this analysis because the two-digit SIC
numbers are the same for both facilities.
Prong 2: Contiguous or Adjacent
As stated earlier in this applicability review, the Lightning Renewables facility will be
located at 1922B Republican Road,Aulander, Bertie County,North Carolina on a leased parcel of
land. The address of the landfill(East Carolina Regional Solid Waste Landfill)is 1922 Republican
Road,Aulander,Bertie County,North Carolina. These two properties are contiguous and adjacent.
Mr. MacNeil
October 11,2022
Page 4
Prong 3: Common Control
Generally, common control is determined through ownership (same parent company or
subsidiary of a parent company). Common control can also be established through decision-
making authority of one entity over the other through a contractual obligation or voting shares.
Through the regulatory action, EPA emphasized that the:
"Agency will be guided by the general definition of control used by the Securities
and Exchange Commission (SEC). In SEC considerations of control, control
"means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person (or organization or
association)whether through the ownership of voting shares,contract,or otherwise.
17 CFR 210.1-02(g).....'.
Moreover, through the EPA "Meadowbrook" guidance document2 dated April 30, 2018,
the EPA made it clear that the focus for a common control determination should be based upon:
"the power or authority of one entity to dictate a specific outcome at another
facility...EPA believes the most relevant considerations should be whether entities
have the power to direct the actions of other entities to the extent that they affect
the applicability of and compliance with permitting requirements: e.g., the power
to direct the construction or modification of equipment that will result in emissions
of air pollution; the manner in which such emission units operate; the installation
or operation of pollution control equipment; and monitoring, testing,
recordkeeping, and reporting obligations. On the other hand, common control
considerations should not focus on the power to direct aspects of an entity's
operations that are wholly unrelated to air pollution permitting requirements. If one
entity has power or authority over some aspect of another entity's operations that
would have no impact on pollutant-emitting activities of the stationary source
subject to permitting requirements, EPA does not consider that fact to be relevant
to determining whether the two entities should be considered a single source for air
quality permitting purposes (e.g., one entity providing security for both its facility
and for an adjacent facility belonging to another entity)."
The Archaea parent company and the Republic parent company have entered into a
mutually beneficial arms-length agreement("Master LFG Development Agreement"),pursuant to
which Archaea is to develop, construct and operate a RNG facility to process and treat the landfill
gas ("LFG") collected at the landfill to generate renewable natural gas and renewable natural gas
attributes ("RNG"). Under the terms of the Gas Rights Development Agreement, Lightning
Renewables will own the RNG facility and equipment to process the LFG collected, conveyed,
and delivered by the landfill to the demarcation point("Delivery Point").
'Requirements for Preparation,Adoption,and Submittal of Implementation Plans;Emission Offset Interpretive Ruling,45 FR 59874,September
11,1980.
'Letter from William L.Wehrum,Assistant Administrator,U.S.Environmental Protection Agency,Office of Air and Radiation,to the Honorable
Patrick McDonnell,Sec'y of the Pennsylvania Department of Environmental Protection(April 30,2018).
Mr. MacNeil
October 11,2022
Page 5
The landfill owner will continue to operate its collection and control system under its exclusive
ownership and operation; therefore, Lightning Renewables (including any of its affiliates) are
notable to make decisions regarding the operation of the landfill owner's pollution control
equipment. The landfill and the RNG facility have a single point of connection,the Delivery Point,
at which location the two separately owned systems become interconnected to facilitate the flow
of LFG. However,the two systems remain under separate ownership, and control at all times. The
structure of the arms-length Master Development Agreement, Master Engineering, Procurement
and Construction Management Agreement, and the Master Operating and Asset Management
Agreement do not amount to"control". The concept of"control"includes only the power to dictate
a particular outcome and does not include the mere ability to influence. The Board has agreed to
delegate all construction & O&M obligations to the operator, Archaea Operating, LLC which is a
wholly owned subsidiary of Archaea Energy, Inc. The two entities and their respective parent
companies(Republic Parent&Archaea Parent), do not share common payroll activities,employee
benefits, health plans, retirement funds, insurance coverage or other administrative functions.
Archaea Parent holds indirectly sixty percent (60%) ownership, and the Republic parent holds
indirectly forty percent(40%) interest in the company.Neither the landfill owner nor the Republic
parent (including any of its affiliates) have decision-making authority relating to the operation of
the RNG facility's pollution control equipment,which authority has been delegated to the operator.
The landfill and the RNG facility do not share any equipment or pollution control equipment. The
company and operator are expressly prohibited from interfering with the landfill owner's operation
of the landfill. The landfill owner and operator currently operate independently under Title V
Permit No. 08849T08 and comply with applicable New Source Performance Standards,Maximum
Achievable Control Technology and other regulatory requirements without the RNG facility as an
end user.The Gas Rights Development Agreement dictates that the landfill owner retains exclusive
control and responsibility of the collection system, including, without limitation, compliance with
all applicable laws and permits relating to emissions on the landfill and the collection system. The
Landfill owner retains its ability to divert the LFG to its flares for compliance purposes. The
landfill owner shall have responsibility for any and all other aspects of the ownership, operation,
management and maintenance of the landfill facilities and emissions sources other than those
related to the RNG facilities.
Based on the submittal by Lightning Renewables, LLC, both the East Carolina Regional
Landfill and Lightning Renewables, LLC —East Carolina are separate, privately held companies.
Neither entity has the ability to exert decision-making authority over the other facility to take a
specific course of action. Moreover, neither entity will own any production equipment or real
property at the site. The primary reason for locating the facilities in close proximity is convience.
With regard to CAA compliance or permitting requirements, East Carolina Regional
Landfill emissions levels are determined solely from the anaerobic decomposition of solid waste
in the landfill. DAQ believes that Lightning Renewables, LLC — East Carolina may somewhat
"influence"the landfill,but it does not"control"the renewable energy facility with respect to how
its pollution-generating and pollution-controlling equipment operate, and to independently decide
whether it expands its operations or not.
Mr. MacNeil
October 11,2022
Page 6
Similarly, whether Lightning Renewables, LLC contractually purchases the landfill gas or not, it
is the landfill's responsibility to comply with its current regulatory requirements.
Finally, EPA has expressed that when a land development company leases a parcel of land
to industrial companies, the development company is not responsible for obtaining an operating
permit for the entire site. As previouly stated, Lightning Renewables, LLC leases a parcel of land
for the location of this facility.
Based on the above rationalizations,DAQ determines that neither facility will have control
over decisions that affect the applicability of, or compliance with relevant air pollution regulatory
requirements; thus, DAQ concludes that these facilities do not "control" each other.
Conclusions
Pursuant to NC's SIP-approved PSD Program (15A NCAC 02D .0530), the DAQ
concludes that Lightning Renewables, LLC — East Carolina and the East Carolina Regional Solid
Waste Landfill are not a single stationary source, and they are two separate stationary sources for
CAA permitting.
If you have any questions concerning this matter, please contact Booker T. Pullen, at 919-
707-8469 or booker.pullen@ncdenr.gov.
Sincerely yours,
/%kA
Mark J. Cuilla, EIT, CPM, Chief,Permitting Section
Division of Air Quality,NCDEQ
c: Betsy Huddleston, Washington Regional Office
Laserfiche
Emily Zambuto, Archaea Energy, Inc.
Nevin Edwards, Archaea Energy, Inc.
Kristen Fan, Archaea Energy, Inc.