Agenda Item IV-1_Agenda Item Description

Agenda Item: Request for Approval of Hearing Officer’s Report on Proposed Revisions to Allow
Electronic Submittal of Documents and Final Approval of Regulatory Impact Analysis
(556)

Explanation: A public hearing was held on February 21, 2023, on the proposed amendments to 18 air quality
rules, 15A NCAC 02D .0103, .0501, .0546, .0605, .1903, .1904, .1905, and .2203, and 15A
NCAC 02Q .0104, .0105, .0206, .0304, .0305, .0307, .0505, .0507, .0508, and .0710, and the
accompanying fiscal note, to allow electronic submittal of documents. Dr. H. Kim Lyerly was
appointed and served as the hearing officer for the public hearing.
The revisions proposed in this rulemaking are primarily to streamline and facilitate the transition
to electronic systems for receiving and storing Department of Environmental Quality (DEQ)
records. Some of the current air quality rules in 15A NCAC, Subchapters 02D and 02Q, require
physical copies of correspondence, records, and applications. Additionally, certain rules
currently require regulated entities to provide multiple copies of applications, forms with original
signatures, or postmarked applications. The proposed revisions serve to streamline and
facilitate the transition to electronic systems for receiving and storing DEQ records.
Under the revised rules, regulated entities may begin providing electronic applications and
reports as the official agency record once the Division of Air Quality (DAQ) makes available a
system for receiving electronic documents. Prior to receiving electronic records required by a
federal rule, the DAQ must receive approval from the Environmental Protection Agency (EPA)
for the system under 40 CFR Part 3, the Cross-Media Electronic Reporting Rule (CROMERR).
In the future, the DAQ will be incorporated into the DEQ’s Self Service Permit Portal, and
electronic air quality permit applications will be submitted through the Department’s system.
Throughout the transition, the current methods for submitting electronic records will be clearly
stated on the DAQ permitting website. Additionally, revisions are proposed to allow electronic
permit fee payments and remove regional office addresses in anticipation of future relocations.
A fiscal note was approved by the Office of State Budget and Management (OSBM) on
September 23, 2022. The DAQ estimates a benefit to regulated entities in the range of
approximately $11,232 to $22,464 per year from savings in paper usage, printer ink, postage
costs, and staff time for preparing and mailing hard copy applications and records. Benefits to
the State are estimated in the range of approximately $59,087 to $118,173 annually from saved
staff time to digitize applications and records received in hard copy format. The estimated
impacts of these proposed rule revisions are not substantial as defined in North Carolina’s
Administrative Procedures Act in NC General Statute 150B-21.4, Fiscal Note on Rules. The
term “substantial economic impact” means an aggregate financial impact on all persons
affected of at least one million dollars ($1,000,000) in a 12-month period. A copy of this fiscal
note can be obtained at OSBM’s website by using the following link,
https://www.osbm.nc.gov/documents/files/DEQ_2022-09-23.

One person provided comments at the public hearing on behalf of the North Carolina
Conservation Network (NCCN) in support of the rulemaking and encouraged the EMC and the
DAQ to make the information received electronically accessible to the public in a usable format
for assessment and analysis. Although outside of the scope of the rulemaking, the DAQ will

consider the feedback provided as its systems develop and evolve. Interested persons may
request specific data that is submitted electronically in formats other than PDF from the agency
when needed. During the January 17, 2023 through March 20, 2023 comment period, the U.S.
EPA Region 4 provided a letter stating that they have reviewed the rules and had no comment.
No changes were made to the proposed rules in response to the comments received.

Recommendation: The Hearing Officer recommends that the proposed amendments to the 18 rules in 15A
NCAC 02D and 02Q as presented in Chapter II of the hearing report, the final regulatory
impact analysis as presented in Chapter VI of the hearing report, and the Hearing Officer’s
Report be adopted by the Environmental Management Commission.