Approved AQC Meeting Summary_09Nov2022

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ENVIRONMENTAL MANAGEMENT COMMISSION
AIR QUALITY COMMITTEE MEETING SUMMARY November 9, 2022 Archdale Building-Ground Floor Hearing Room 10:15 A.M. – 11:15 P.M.

AQC MEMBERS IN ATTENDANCE
Ms. Margaret (Maggie) Monast, AQC Chair Ms. Donna Davis
Mr. Charlie S. Carter, AQC Vice-Chair Ms. Marion Deerhake
Ms. Yvonne Bailey

OTHERS IN ATTENDANCE
Ms. Robin Smith, EMC Chair Mr. Mike Abraczinskas, DAQ Director
Ms. Patricia Harris, EMC DEQ Staff
Mr. Phillip Reynolds, EMC Counsel Members of the public
PRELIMINARY MATTERS
Agenda Item I-1, Call to Order and the State Government Ethics Act, N.C.G.S. §138A-15 AQC Chair Monast 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. Agenda Item I-2, Review and Approval of the September 7, 2022 Meeting Minutes Chair Monast requested approval of the September 7, 2022 Meeting Minutes. Commissioner Bailey made the motion and Commissioner Carter seconded the motion. The minutes were approved
unanimously without discussion. Chair Monast abstained from the vote.
MEETING BRIEF
During the meeting on November 9, 2022, the Air Quality Committee (AQC) of the Environmental
Management Commission (EMC) heard:
• Concepts: None
• Action Item: Request for Approval of Proposed Amendments and Regulatory Impact Analysis to
Proceed to the EMC for Approval to Proceed to Public Hearing on the Amendments to Correct Errors
Introduced During the Rule Readoption Process and Repeal of 15A NCAC 02D .0960 (555) Part B

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RULEMAKING CONCEPTS No rulemaking concepts items were presented during this AQC meeting.
ACTION ITEMS Agenda Item III-1, Request for Approval of Proposed Amendments and Regulatory Impact Analysis to Proceed to the EMC for Approval to Proceed to Public Hearing on the Amendments to Correct Errors Introduced During the Rule Readoption Process and Repeal of 15A NCAC 02D .0960 (555) Part B Description: Ms. Carrie Pickett, Division of Air Quality (DAQ), described the proposed rulemaking as a proactive
review project beginning in early 2022 to make corrections and clarifications of the recently readopted rules. Internal and external stakeholders were contacted for involvement in identifying corrections for cleanup. The rules were then split into a Part A and Part B. The Part B group of rules presented before the
AQC today include a Regulatory Impact Analysis (RIA) approved by the Office of State Budget and Management (OSBM). No burden is anticipated to any stakeholder as a result of these rule proposals. Four rules were then highlighted to the Committee as examples of the rulemaking corrections to consider.
The timeline for rulemaking includes a 60-day comment period and a public hearing hosted by the Division. Discussion: Chair Monast opened the discussion for questions. EMC Chair Smith asked if adding back the language into Rule 02Q .0102 will exempt flares. Ms. Pickett responded that “solid waste landfills:” is the term to be defined. With this rule, the term was wrongly deleted and therefore everything after has no context to make sense of what is or isn’t exempted. The DAQ has been applying this rule as the language was written before readoption, which we are reverting to again. Director Abraczinskas clarified that this rule outlines activities that are exempt from
permitting, so DAQ is attempting to revert to how the language was written previously. EMC Chair Smith asked if the intent of the language is the that the exemption would apply to solid waste landfills but not to flares and combustion sources at solid waste landfills. Ms. Pickett confirmed and responded that
the Office of Administrative Hearings (OAH) editing tool caused this error of an accidental deletion, but there was never an intention to apply the rule differently from how it was written prior to readoption. Commissioner Bailey asked if the rule definition being added to 15A NCAC 02D .0928 includes facility electric vehicles. Ms. Pickett responded that this rule applies to vehicle service stations and associated vapor recovery requirements and relates to what vehicles are refueled at these service stations. The purpose of adding this definition for “motor vehicle” is to distinguish on-road from off-road vehicles, in particular boats fueling up at marina service stations. Therefore, this definition was determined to be the best means of clarifying what is considered a motor vehicle in the context of vehicle service stations. Commissioner Deerhake asked if Ms. Pickett stated in her presentation that the EPA informed DAQ that Rule 02D .0960 was redundant. Ms. Pickett confirmed, stating that in the public stakeholder process for these rules, EPA stated in their comments that Rule 02D .0960 is redundant. Commissioner Deerhake asked if stakeholders were involved in the motor vehicle definition being added to Rule 02D .0928. Ms. Pickett confirmed, stating that it is DAQ’s attempt to select the most complete and consistent resolution for clarifying what is a service station for on-road vehicles. The

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definition found in State Statutes was determined as the best option to present before the Committee and receive public comment on.
EMC Chair Smith referenced the exemption rule for solid waste landfills, 02Q .0102, asking if it would be clearer to use a period after “solid waste landfills” and then a separate sentence stating “this exemption does not apply to flares and other sources of combustion”, or something similar. Ms. Pickett responded that the purpose of this rulemaking was clarification and consistency, so the punctuation in this text includes a colon because the OAH style guide recommended it, and for consistency with the other items listed in paragraph (g). If DAQ had included the whole rule language on the slide, this would be more apparent and show the use of the colon after every phrase being defined. This is consistent with the formatting used for a definition section within a rule. Chair Monast asked for any other questions or comments, or if there was a motion. Commissioner Bailey made a motion to approve proceeding to the full EMC to request to go to public notice. Commissioner Davis seconded the motion. The motion was approved unanimously. Agenda Item V-1, Director’s Remarks (Mike Abraczinskas, DAQ)
Director Abraczinskas began with a staffing update, welcoming Katie Quinlan as the new Rule Development Branch (RDB) Supervisor in the Planning Section of DAQ, replacing Patrick Knowlson who retired at the end of August. Katie joined the RDB as an Engineer in October of 2019 after 5 years of working for the Texas Commission on Environmental Quality in the Air Permits Division, and has a bachelor’s degree in Civil Engineering from the University of Texas at Austin.
Next, Director Abraczinskas outlined several EPA actions that DAQ is following, beginning with potential revisions to the minor new source review (NSR) program. Currently, EPA is taking feedback from states and local air agencies on several aspects of the minor NSR program, including the public participation procedures and procedures for ensuring protection of the National Ambient Air Quality Standards (NAAQS). Any revisions to the Part 51 rules for minor NSR would be proposed no earlier than June of next year. He recommended that DAQ does not come back to the AQC with any proposed
revisions to North Carolina’s synthetic minor noticing procedures until after EPA’s proposal, but also noted that DAQ is exploring options for adjusting these procedures in the meantime.
Secondly, DAQ is following forthcoming changes to the annual particulate matter (PM) with an
aerodynamic diameter of less than 2.5 micrograms per cubic meter (PM2.5) NAAQS, monitoring rules, exceptional event policies, and a possible secondary or daily standard. The proposal is expected any day, and the EMC Information Item presentation on ACT will include additional information about where
North Carolina stands relative to a new, lower standard.
The third item DAQ is reviewing involves some recently-released principles from EPA for addressing environmental justice (EJ) concerns in environmental permitting. It appears that DAQ and DEQ’s current
EJ procedures and guidance are well-aligned with these principles, but DAQ will continue to review and adjust as necessary.
The fourth item DAQ is following involves six non-regulatory dockets EPA recently opened regarding the Inflation Reduction Act (IRA) funding available to broadly address air pollution. There are several “buckets” of funding available, and EPA is asking states and local air agencies for feedback on how to structure some of those programs. There are lots of opportunities to do a lot of good nationally. The DAQ is taking a close look to make some recommendations, with a theme of not forgetting the core programs for which DAQ is struggling to meet existing federal deadlines. Layering the staffing issues on top of that, the air agencies need core program funding to meet existing requirements.

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Next, Director Abraczinskas provided an overview of some items that will be coming before the AQC. The concept for the Advanced Clean Trucks (ACT) Rule, resulting out of Governor Cooper’s Executive
Order 271, will be presented at the EMC tomorrow. DAQ anticipates bring the RGGI fiscal note presentation to the AQC in January 2023 and commencing rulemaking to adjust its synthetic minor permit fees later in 2023, only after engaging with stakeholders.
Finally, DAQ is announcing the final set of awards under the Volkswagen (VW) Settlement, amounting to $11 million in grants for projects to replace older heavy-duty vehicles and equipment with cleaner alternatives. These awards fund replacement of 45 on-road and off-road diesel vehicles, including bucket trucks, refuse haulers, dump trucks, box trucks, front end loaders, semi-trucks, freight trucks and freight switchers, with nearly half of the funds going towards electric vehicle replacements, and resulting in
reductions of more than 113 tons of NOx, 5,900 pounds of PM, over 6,900 tons of greenhouse gases (GHG) reductions. One unique project includes the awarding the electrification of two diesel freight switcher locomotives operated by Nucor Steel under a public-private partnership with Hertford County, reducing NOx emissions by 93 tons over the lifetime of the project. Commissioner Carter asked if that type of project was part of the VW grant, even though it is not an on-road vehicle. Director Abraczinskas confirmed that the clean heavy-duty category allowed for that type of off-road equipment to be replaced.
There are still about $869,000 available in VW rebate dollars to help fund Level 2 electric vehicle charging stations, which can be installed at workplaces, apartment complexes, parks, urban centers, and other locations. Rebates are available for up to $5,000 for a government applicant and up to $4,000 for a non-government applicant for each new charging station installed. More information is available on the DAQ’s website. DAQ has one final opportunity and is accepting applications through November 14 for $1 million of Diesel Emission Reduction Act (DERA) dollars, which come from Congress through EPA, that support a wide range of diesel emission reduction projects, from the replacement of school buses, non-road construction equipment, agricultural equipment, and other heavy-duty on-road vehicles with newer, cleaner equipment.
Commissioner Bailey asked about the electric car charging stations, if someone could apply for the money after installation, and how long the application process takes. Director Abraczinskas stated that there is fine print about whether the equipment can already be installed and offered to follow up with details from the VW team, noting that there are conditions that must be met. The Level 2 charging stations are first-come first-serve basis rebate program. As long as the application meets the eligibility
requirements and terms, and there is funding available, it can be awarded quickly. Commissioner Bailey asked how many have been awarded and how much money is remaining. Director Abraczinskas stated that $869,000 is available, with rebate amounts up to $5,000 per charging port for public-sector
installations, and $4,000 per charging port for non-government applicants per charging port installed. He will follow up with the number of charging ports awarded, also stating that the information is on the DAQ’s website along with that for all prior awards.
Commissioner Deerhake asked if for-profit entities can apply. Director Abraczinskas stated it is probably mostly public-sector eligibility only for many of the categories of funding because DAQ’s early stakeholder process found that the public sector needs were so great. However, there were some innovative ways to address that, such as public-private partnerships. The remaining amount left for the chargers also has non-government eligibility in the category.
CLOSING REMARKS AND MEETING ADJOURNMENT Chair Monast noted changes to the AQC members: Commissioner Lyerly will be joining the AQC, and Commissioner Duggan will serve as the Vice-Chair. Chair Monast thanked all in attendance for their participation, noted that this is the last meeting of 2022, and adjourned the meeting.