III-1_Agenda Item Description_Permit Review Timelines

Agenda Item III-1 Page 1 of 2
Agenda Item: Request for Approval to Proceed to the EMC to Request to Proceed to Public Comment on Proposed Rule Revisions to Permit Review Timelines and Definitions Pursuant to Session Law 2023-134, Section 12.11(a)-(c) and Regulatory Impact Analysis (564) Explanation: The Air Quality Committee (AQC) is requested to approve the draft rules on the proposed amendments to: 15A NCAC 02Q .0303, Definitions; 15A NCAC 02Q .0304, Applications; 15A NCAC 02Q, .0305, Application Submittal Content; 15A NCAC 02Q .0312, Application Processing Schedule; 15A NCAC 02Q .0503, Definitions; 15A NCAC 02Q, .0505, Application Submittal Content; 15A NCAC 02Q, .0507, Application; 15A NCAC 02Q, .0515, Minor Permit Modification; 15A NCAC 02Q, .0525, Application Processing Schedule; and accompanying regulatory impact analysis (RIA) to proceed to the Environmental Management Commission (EMC) for approval of the request to proceed to public comment.
The revisions to the nine rules are proposed in response to changes in the permitting review requirements reflected in Session Law 2023-134, Sections 12.11(a)-(c) which was part of the 2023 Appropriations Act for North Carolina passed in October 2023, and amended with technical corrections in Session Law 2024-1, Section 4.13.
Section 12.11(a) of the Session Law revises General Statute (G.S.) § 143-215.108 Control of sources of air pollution; permits required, Paragraph (d)(2), where new timelines for permit reviews were created specifically for permit modification applications. This relates to all permit modifications, stating “Title V and other permits” within the language of Paragraph (d)(2). Further, the Session Law language specifies maximum time periods allotted for North Carolina Division of Air Quality (DAQ) staff to review and process these permit modifications; where there are 90 calendar days for review of a minor permit modification application, and 270 calendar days for review of a major permit modification application, from the date that the DAQ receives a complete application.
Section 12.11(b)-(c) of Session Law 2023-134 modifies G.S. § 143-213, Definitions, by creating a new subdivision (1a) which adds into the definitions list the term “administratively complete” with an accompanying definition. This term means “that all information required by statute, regulation, or application form has been submitted to the DAQ for the purpose of processing a permit application.” Once an application has been submitted to the Division with all components necessary to be deemed “administratively complete,” the time period the Division staff are allotted for review of the permit modification application begins. Because this term and the newly created time periods for permit modification reviews are closely related, this rulemaking action will address both.
The RIA for this proposed rule revisions was approved by the North Carolina Office of State Budget and Management (OSBM) on August 30, 2024. The RIA provides an overview of the current review processes, adjustments to review processes upon implementation of the Session Law timelines, and the key items that may impact the DAQ and stakeholders. Because of the nature of the proposed changes (i.e.,
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variables are market dependent and uncertain), the analysis qualitatively characterizes potential cost impacts and benefits to state government and the private sector regulated community. The most likely potential for benefits is the increased certainty for regulated entities and state personnel by a more defined review timeline for processing complete applications. Possible impacts that may result as the DAQ adjusts its permitting practices to conform to the new Session Law review timelines include diminished flexibilities for review engineers and permit applicants throughout the review process, potential changes in permit outcomes, applicants choosing to hire environmental consultants, and limitations on the DAQ’s ability to consolidate renewal and modification applications for overall streamlining. Despite these possible impacts, there is no anticipated quantifiable change in costs or savings to the State, regulated community, or local government.
Recommendation: The Director recommends that the Committee approve the proposed rule amendments to 15A NCAC 02Q .0303, .0304, .0305, .0312, .0503, .0505, .0507, .0515, and .0525, and the accompanying RIA to proceed to the EMC for approval to proceed to public comment.