Approved AQC Meeting Summary_13July2022

ENVIRONMENTAL MANAGEMENT COMMISSION AIR QUALITY COMMITTEE MEETING SUMMARY July 13, 2022 Archdale Building-Ground Floor Hearing Room 11:15 A.M. – 12:15 P.M.

AQC MEMBERS IN ATTENDANCE
Ms. Shannon M. Arata, AQC Chair Ms. Donna Davis
Mr. Charlie S. Carter, AQC Vice-Chair Ms. Marion Deerhake
Ms. Maggie C. Monast
OTHERS IN ATTENDANCE
Ms. Robin Smith, EMC Chair Mr. Mike Abraczinskas, DAQ Director
Ms. Jennifer Kelvington DEQ Staff
Mr. Phillip Reynolds, EMC Counsel Members of the public Mr. John McAdams PRELIMINARY MATTERS Agenda Item I-1, Call to Order and the State Government Ethics Act, N.C.G.S. §138A-15 AQC Chair Arata waited to have a quorum to start the meeting and then she called the meeting to order and inquired, per General Statute §138A-15, as to whether any member knows of any known conflict of interest or appearance of conflict with respect to matters before the EMC’s AQC. None stated. The agenda order was reversed due to one of the Commissioners needing to leave early and their vote was required for approval. Agenda Item I-2, Review and Approval of the May 11, 2022 Meeting Minutes Chair Arata requested approval of the May 11, 2022 meeting minutes. Commissioner Deerhake made the motion and Commissioner Monast seconded the motion. The minutes were approved without a discussion by unanimous vote.
ACTION ITEMS
MEETING BRIEF
During the July 13, 2022 meeting, the Air Quality Committee (AQC) of the Environmental Management
Commission (EMC) heard:
• Concept: Revisions to Synthetic minor Permit Public Notice Requirements (558)
• Action Items:
Revisions to Correct Errors Introduced During Rule Readoption Process, Part A (555)
Revisions to Rule 02D .0516 (557)

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Agenda Item III. 2. Revisions to Rule 02D .0516 (557) Chair Arata introduced the presenter, Mr. Bradley Nelson. She indicated that Commissioner Bailey was not able to join the meeting because she was out of town. Description: Mr. Bradley Nelson started the presentation indicating that the DAQ is proposing to amend 15A NCAC 02D .0516, Sulfur Dioxide Emissions from Combustion Sources. This rule was adopted in 1977 to attain and maintain the National Ambient Air Quality Standards for sulfur dioxide (SO2) using a 2.3 lb/MMBtu emission standard. The rule is being amended based on a declaratory ruling by the EMC that concluded that the plain language of the 02D .0516 did not prohibit the use of supplemental fuels, including natural gas purchased from a utility, to increase the heating value to achieve compliance with the 2.3 lb./MMBtu standard. Mr. Nelson stated that DAQ is proposing to clarify in the rule that the use of supplemental fuel
beyond what is needed for combustion is not means for meeting compliances with the SO2 standard. Mr. Nelson added that a DAQ work group from permit and compliance met and recommended revisions
to the rule. The revisions included changes to Paragraph (a) of the rule to clarify that air pollution control devices are a source of combustion. Also, portions of the original Paragraph (a) were separated into Subparagraphs under new Paragraph (b) to make it easier for the user to read. A third Subparagraph was
added to a new Paragraph (b) that states that the determination of Btu input shall not include fuels whose sole purpose is to increase heat input. The original Paragraph (b) was moved to be Paragraph (c). Mr. Nelson added that a draft Regulatory Impact Analysis was prepared for this rule. The impact to facilities was estimated to be $43,000 in the first year, and then $41,000 thereafter. The estimate of benefits was done using the EPA CO-Benefits Risk Assessment Health Impacts Screening and Mapping Tool1 (COBRA). The result of the tool showed a range of $10,000 to $23,000 at a 7 percent discount rate. He also indicated that the Regulatory Impact Analysis was submitted to the Office of State Budget and Management for approval and it still in progress. At the end of his presentation, Mr. Nelson requested the approval to proceed to the public hearing process during the month of September 2022. Discussion: Chair Arata opened the discussion section thanking Commissioner McAdams for joining the meeting and invited him to ask question even though he was not part of this Committee. Commissioner Deerhake asked if the word "waste" was defined anywhere and if it was broad enough that it captured waste gases? Mr. Nelson stated that the term is not defined, but noted that the term typically includes gaseous, liquid, and solid wastes. He noted that the term “fuels” also includes the three states of fuels that can be used. The term was discussed with the work group, and they felt it was broad enough that it would capture all forms of waste that may be combusted. Commissioner Deerhake stated she wanted her comment to be on the record to make sure the DAQ felt that this term was correct. Mr. Nelson confirmed. Commissioner Deerhake asked why the EPA COBRA tool was selected to estimate environmental benefits. Mr. Nelson responded that the COBRA tool was selected because the program allowed the DAQ to include more of the pollutants that were being reduced as a result of the revisions. These pollutants included nitrogen oxides and volatile organic compounds. In addition, the COBRA program allows the

1 https://www.epa.gov/cobra
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DAQ to estimate benefits at the county level. Commissioner Deerhake asked if the COBRA program includes particulate matter (PM) emissions. Mr. Nelson confirmed that PM emissions were included. Commissioner Deerhake asked if secondary PM emissions are included. Mr. Nelson responded the program has an input for PM2.5, and it was assumed that all PM from combustion is PM2.5. Commissioner Deerhake asked if the program allowed input of secondary particulates, like aerosols, the ammonium sulfates and ammonium nitrates. Mr. Nelson stated that there was an input for ammonia, but no emissions were added. Commissioner Deerhake clarified that when you have ammonia occurring in the atmosphere, and if you are adding sulfur dioxide to it, you are enabling the production of ammonium nitrate or ammonium sulfate, and she asked if the DAQ was able to carry that prediction to that level. Mr. Nelson responded that ammonium nitrate and ammonium sulfate emissions were not evaluated in the program and only the primary pollutants were evaluated.
Commissioner Deerhake asked if there was a disposal cost for the spent iron sponge absorbent. Mr. Nelson responded that the absorbent is regenerated and the costs for the operation of the iron sponge
includes these regeneration costs. Commissioner Deerhake asked for confirmation that the absorbent media is not disposed of. Mr. Nelson confirmed and indicated that they assumed that it would be regenerate just because it was the lowest cost for operation of the iron sponge. He added that the
absorbent media is essentially wood chips coated with a chemical solvent that absorbs the H2S. Commissioner Deerhake thanked for the responses and stated that she appreciated the citation about Cornell’s Dairy Environmental System Program. Chair Arata asked if the term supplemental gas that was used during the previous hearing needs to be defined or if the term is not necessary under current proposed rule language. Mr. Nelson responded that he would discuss with the workgroup and get their thoughts. Chair Arata responded that will be helpful to reduce the ambiguity. Mr. Nelson confirmed and added that the DAQ does not want to bring ambiguous languages to the RRC. Chair Arata asked the members if there were other questions and proceeded to ask for a motion. Commissioner Deerhake requested approval with the proposed amendments for presentation to the EMC in September 2022. Commissioner Davis seconded the motion. There was no further discussion on the
motion, and it was unanimously approved. Agenda Item III. 1. Revisions to Correct Errors Introduced During Rule Readoption Process, Part A (555) Chair Arata introduced the presenter, Ms. Carrie Pickett. Description: Ms. Carrie Pickett began her presentation by indicating that this agenda item was presented as a concept at the last AQC meeting and is part of the rule readoption cleanup. The process has been split into two rulemakings; Part A includes 10 rules with typographical errors and Part B includes 20 rules with more substantive changes and will be presented at a later AQC meeting. Part A of the process is a set of 10 rules that fall under N.C.G.S. 150B-21.5(a)(5) typographical errors. Ms. Pickett provided a list of the proposed revisions and noted again that these revisions were all typographical. As an example, she pointed out in 02D .0943 that the ambient temperature was listed as 201 degrees Celsius which translates to 398 degrees Fahrenheit which is clearly not ambient temperature.
She noted that some of these errors were a result of software changes over the years. She added that if
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these changes are approved by the Committee, they will be presented at the September EMC meeting. If approved by the EMC, the DAQ will notify the codifier, and these changes will take effect immediately.
Ms. Picket asked the Committee to approve the proposed rule amendments for presentation to the EMC in September for final approval of proposed rule amendments. Discussion: none Chair Arata opened for the motion. Commissioner Davis made the motion of approving the proposed rule amendments for the presentation to the EMC in September 2022 for final approval and Commissioner Monast seconded. No further discussion on the motion, and it was unanimous approved. RULEMAKING CONCEPTS Agenda Item II-1, Revisions to Synthetic Minor Permit Public Notice Requirements (558) Chair Arata introduced the presenter, Ms. Katherine Quinlan. Description: Ms. Katherine Quinlan started the presentation giving a synopsis of timeline details of the process. In July
of last year, the U.S. EPA, Office of Inspector General (EPA-OIG) released a report summarizing an audit of sixteen natural gas industry synthetic minor source permits from Oklahoma and Colorado. There were a number of findings in that audit but one of those findings was that some states do not currently include synthetic minor source permits in their public participation process, as required by federal rule. So, they recommended that EPA identify all state, local, and tribal agencies with permits programs that do not adhere to the public participation requirements for synthetic minor facilities and that they take appropriate steps to ensure adherence. Ms. Quinlan added that in response, the Office of Air and Radiation at EPA would work with the EPA Regional Offices to identify agencies with program regulations that don’t meet the applicable EPA regulations and guidance with respect to the public participation process for synthetic minor permitting.
They plan to complete this review in July 2022 and take appropriate corrective steps for the identified agencies, which may potentially include informal engagement, by December 2023.
Ms. Quinlan stated that North Carolina’s requirements synthetic minor facilities are issued permits under the minor source permitting program procedures in our 02Q .0300 rules and except for the activities and sources, specifically listed in rule 02Q .0306(a), North Carolina air quality rules don’t currently require
public notice for minor source permits that are issued under 02Q .0300, which includes the synthetic minor source permits. Ms. Quinlan stated that the DAQ is proposing revisions to the public notice requirements in 15A NCAC 02Q .0300 to provide opportunity for public participation in the permitting process for synthetic minor facilities. So far, the DAQ has reviewed the Rule history, researched similar equivalent requirements in neighboring states’ regulations, and informed EPA Region 4 of the intent to revise the rules for synthetic minor facility permits. The DAQ will continue to correspond with EPA to remain informed of any further guidance regarding their minor source permit public notice requirements to ensure the revisions satisfy the guidance and regulations.
At the end of the presentation Ms. Quinlan showed the timeline of the rule process. She indicated that the draft rules will be presented to the AQC in September, DAQ will request to proceed to public hearing in November, and then adoption in either March or May of next year, with a projected effective date in May
or July of next year.
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Discussion: Commissioner Carter stated that in the past, synthetic minors were not required to go to public hearing
and asked if this was a new requirement. Director Abraczinskas responded that the federal rules in 40 CFR 51.161 do require a public notice process. Commissioner Carter believed that it didn't previously require a public hearing for synthetic minor permits. Director Abraczinskas responded that he was not aware of a public notice requirement for synthetic minor permits and our rules currently do not require any type of public process for 02Q .0300 permits. Commissioner Carter asked if there was a public notice for these permits. Director Abraczinskas noted that the DAQ has done some research and looked back at the rules over time and found that at one point our 02Q .0300 rules did have that requirement consistent with 40 CFR 51.161. However, this is not the way the rule reads today. The purpose of this concept is just to make you aware that our intention is to absolutely align with the federal requirements. We want to get ahead of any EPA action and are trying to get guidance from EPA on the specific expectations and requirements that are important to insert into the rule. If we need to, the DAQ can go
ahead and execute this practice while we are going through the rulemaking process. We want to be sure that we are doing is in the way that EPA expects us to, and that is why Ms. Quinlan noted that we are still in correspondence with EPA on that exact guidance.
Commissioner Carter asked whether it used to be the case that it was included in the rule and why or when it was removed. Ms. Quinlan responded that she could not recall the exact date, but it did come out
several actions ago. Commissioner Carter stated that if it was in there, why we would have taken it out and run into a problem now. Director Abraczinskas responded this is a very good question. I'm not sure that we have the answer today. We can research that for the full Committee in September. Commissioner Carter stated if our current rules do not align with the federal rule, we certainly have every intent to get them aligned as quickly as possible. Mr. Patrick Knowlson, DAQ Rules Development Branch Supervisor, noted that the public notice requirements were in the rules in the late 90’s and early 2000’s, so they have been in and out more than once. Commissioner Carter stated that he thought that the DAQ always went to notice with permits and asked if the DAQ would be required to hold the public hearing on everyone or would that be a discretionary
situation like we've got now in the rules. Director Abraczinskas confirmed that the DAQ goes to public notice and added DAQ’s reading is that it requires public participation in the permitting process. The DAQ is trying to get specific guidance on that from EPA but believes that it will require a public comment period. The initial thought is that it provides the opportunity for a public hearing just like what the Title V program offers. It doesn't make a lot of sense to have a higher bar for a smaller magnitude permit than the Title V. Hopefully, it will be a lot clearer at the Committee meeting in September. Chair Arata asked if whether there are other questions. She indicated that this Committee has one item on tomorrow's agenda for the full Commission and proceed to introduce the Director’s remarks section. INFORMATIONAL ITEMS
Agenda Item V-2, Director’s Remarks (Mike Abraczinskas, DAQ)
Director Abraczinskas started the Director's remarks indicating that DAQ Deputy Director Michael Pjetraj was on a 6-month rotation to the Division of Water Resources. While that's occurring through the end of the year, the Division will have the 4 section chiefs rotating through as Acting Deputy Director for
DAQ between now and September. He stated that currently, Patrick Butler is the Acting Deputy Director, and then starting next week Randy Strait will be Acting Deputy Director for about three weeks, and then after that, Steve Hall will be for the following three weeks, and Mark Cuilla will finalize the rotation of
three weeks to mid-September. He indicated that after that we anticipate doing a broader set of career
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development rotations in our division and we'll further define those for you once we have them defined for October through December.
He stated that the entire management team is working on staffing issues. Currently we stand at 41 vacancies in the Division of Air Quality, which is 20% of our total positions. The Division is working hard on that across all work units because we are experiencing a lot of retirements. It's not a surprise and is something we've been planning for through a lot of our continuity planning for many years, but the Division is experiencing some unexpected resignations as well. Director Abraczinskas ended his remarks announcing Patrick Knowlson’s retirement and thanking him for his service to the State, the Division, and years of staff support to this Committee and to this Commission. CLOSING REMARKS AND MEETING ADJOURNMENT Chair Arata noted the next meeting of the AQC is scheduled for September 7, 2022 and adjourned the
meeting.