III-1_PowerPoint_Permit Review Timelines

Department of Environmental Quality
Revisions to Permit Review Timelines and Definitions Pursuant to Session Law 2023-134
Air Quality Committee Meeting –September 11, 2024
Acronyms
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Department of Environmental Quality
Abbreviation Term
15A NCAC Title 15A of the North Carolina Administrative Code
40 CFR Title 40 of the Code of Federal Regulations
AQC Air Quality Committee
DAQ Division of Air Quality
EMC Environmental Management Commission
EPA United States Environmental Protection Agency
G.S.General Statute
MACT Maximum achievable control technology
OSBM Office of State Budget and Management
PSD Prevention of Significant Deterioration
RRC Rules Review Commission
S.L.Session Law
Background
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Department of Environmental Quality
•The Legislature passed Session Law (S.L.) 2023-134 in October 2023.
•Sections 12.11. of the S.L., Air Permitting Review and Issuance Timelines,
specifies Air Permitting related changes to General Statute (G.S.) 143-
215.108(d)(2) and G.S. 143-213(1), respectively.
•Section 12.11.(a) modifies the allotted time periods for review of permit
modification applications by the DAQ.
•Section 12.11.(c) adds a new definition of the term “administratively
complete” applications, thereby starting the clock for the review periods
specified in Section 12.11.(a).
Background
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Department of Environmental Quality
•Section 12.11.(a) of the S.L. requires that the Department issue, deny, or publish for
public notice and comment permit modifications:
•Within 90 calendar days of receipt of an administratively complete application for a
minor modification; or
•Within 270 calendar days of receipt of an administratively complete application for a
major modification.
•Section 12.11.(c) of the S.L. defines of the term “administratively complete” to mean
“that all information required by statute, regulation, or application form has been
submitted to the Department for the purpose of processing a permit application.”
Current Practices for Permit Modification Reviews
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Department of Environmental Quality
Non-Title V Permit Modifications:
Application Acknowledgement/AcceptanceWithin 10 days of receiving an application, the Division provides a letter to the applicant acknowledging that the application was received, and identifying whether the application contained the minimum elements needed to be accepted for processing (as identified in Rule 02Q .0305).
Application CompletenessWithin 45 days of receiving an accepted application, the Division reviews the application for completeness, requesting any missing information from the applicant. (60 days if case-by-case MACT review is required)
Technical CompletenessWithin 45 days of receiving a complete application, the Division reviews the application for technical completeness, requesting any missing information from the applicant.
Agency ActionWithin 90 days of receiving a complete application, or within 10 days of receiving the latest information requested, the Division takes action on the permit (to issue, deny, or publish for notice and comment). (120 days for case-by-case MACT reviews)
These timelines are currently counted as “processing days”.
Current Practices for Permit Modification Reviews
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Department of Environmental Quality
Title V Permit Modifications: (Minor, Significant 1-Step)
Application Acknowledgement/AcceptanceWithin 10 days of receiving an application, the Division provides a letter to the applicant acknowledging that the application was received, and identifying whether the application contained the minimum elements needed to be accepted for processing (as identified in Rule 02Q .0505 and .0507).
Application Completeness (applies to Significant 1-Step only)Within 60 days of receiving an accepted application, the Division reviews the application for completeness, requesting any missing information from the applicant.
Technical CompletenessThe Division reviews the application for technical completeness, requesting any missing information from the applicant that is needed to evaluate the source.
Agency ActionWithin 90 days (for minor mods) or 270 days (for significant mods) of receiving a complete application, the Division takes action on the permit (to issue, deny, or publish for notice and comment).
These timelines are currently counted as “processing days”.
Current Practices for Permit Modification Reviews
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Department of Environmental Quality
Title V Permit Modifications: (Significant 2-Step)
1st Step Application: Construction and Operation Permit
Reviewed and issued under 02Q .0300 Modification Provisions.
2nd Step Application: Title V Operating Permit
Reviewed and issued under 02Q .0500 Significant Modification
Provisions.
Processing Days vs. Calendar Days
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Department of Environmental Quality
•“Processing days” means that the days during which the DAQ is waiting on information that has been requested from the applicant are not counted towards the timelines.
•Currently, all applications timelines use “processing days”. This allows the DAQ to be flexible with applicants that need more time and/or assistance to gather information since this extra time is not counted against the DAQ permit engineer’s review timeline.
•Sometimes also referred to as “pausing” the review clock.
•Upon implementation of the new S.L. review timelines, the schedules for reviewing modification applications will use a combination of “processing” and calendar days, while the schedules for all other application types will remain unchanged.
New Practices for Permit Modification Reviews
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Department of Environmental Quality
Acknowledgement/ Acceptance
within 10 days
Application Completeness* within 45
or 60 days
Agency Action within 90 or 270
calendar days of receiving a complete
application
processing
days
calendar
days
*does not apply to Title V minor modifications
New Practices for Permit Modification Reviews(upon implementation of S.L. 2023-134, Section 12.11(a))
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Department of Environmental Quality
Non-Title V Permit Modifications
(review under 02Q .0300 procedures)
New Practices for Permit Modification Reviews(upon implementation of S.L. 2023-134, Section 12.11(a))
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Department of Environmental Quality
New Practices for Permit Modification Reviews(upon implementation of S.L. 2023-134, Section 12.11(a))
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Department of Environmental Quality
New Practices for Permit Modification Reviews(upon implementation of S.L. 2023-134, Section 12.11(a))
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Department of Environmental Quality
Proposal Overview
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Department of Environmental Quality
The DAQ is proposing to revisions to nine rules in Subchapter 02Q, in the following Sections:
•02Q .0300, Construction and Operation Permits, including:
•02Q .0303, Definitions
•02Q .0304, Applications
•02Q .0305, Application Submittal Content
•02Q .0312, Application Processing Schedule
•02Q .0500, Title V Procedures, including:
•02Q .0503, Definitions
•02Q .0505, Application Submittal Content
•02Q .0507, Application
•02Q .0515, Minor Permit Modifications
•02Q .0525, Application Processing Schedule
Proposed Rule Revisions
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Department of Environmental Quality
02Q Rule Description of Change(s)
.0303 Definitions
Added a definition for the term “complete application” that cross references
the term “administratively complete” in G.S. 143-213 and includes language
similar to the equivalent definition of this term in 02Q .0503.
.0304 Applications Clarifying amendments to indicate the application elements needed for an
application to be accepted by the Division for processing..0305 Application Submittal Content
.0312 Application Processing
Schedule
Revisions to align schedules and timelines with new processes upon
implementation. See slides 16-18 for more details.
.0503 Definitions Revised the definition of “complete application” to include a cross reference to
the term “administratively complete” in G.S. 143-213.
.0505 Application Submittal Content Clarifying amendments to indicate the minimum application elements needed
for an application to be accepted by the Division for processing..0507 Application
.0515 Minor Permit Modifications Revisions to align procedures with new review timelines upon
implementation. See slide 19 for more details.
.0525 Application Processing
Schedule
Revisions to align procedures with new review timelines upon
implementation, and reorganization of rule formatting throughout. See slide
20 for more details.
15A NCAC 02Q .0312, Application Processing Schedule
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Department of Environmental Quality
Revisions are proposed to Paragraph (a) to specify that the procedures of Paragraph (a) only apply to
applications for new permits and permit renewals and will not apply to permit modifications except as
specified in new Paragraph (b).
•Revisions to Part (a)(1)(A) are proposed to clarify the Acknowledgement/Acceptance step of the
application review process, which occurs within 10 days of receiving the application. The DAQ
sends a letter acknowledging receipt of the application by the DAQ and stating whether the
application is accepted for processing. If the application is not accepted for processing, the
acknowledgement letter indicates the missing items from Rule 02Q .0305 needed for the
application to be accepted.
•Revisions to Part (a)(1)(B) are proposed to clarify the Application Completeness step of the review
process, which occurs within 45 processing days of receipt of an accepted application. Within this
timeframe, the DAQ notifies the applicant that either: their application is complete; or their
application is incomplete, requesting additional information to make the application complete.
15A NCAC 02Q .0312, Application Processing Schedule
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Department of Environmental Quality
Revisions to Paragraph (a), continued:
•Existing Part (a)(1)(C) is proposed to be deleted since this language is obsolete, and the
subsequent Parts are renumbered accordingly.
•Existing Part (a)(1)(D) (renumbered as (a)(1)(C)) does not need amending since it already requires
the DAQ Director to issue or deny the permit modification within 90 days of receiving a complete
application or 10 days after receipt of requested additional information.
•Minor cross-reference and grammar corrections are proposed to Parts (a)(1)(E)-(F) (renumbered
as Parts (a)(1)(D)-(E)).
•Subparagraph (a)(3) is revised to clarify that these timelines and procedures are not applicable for
modification applications. The proposed revisions within Parts (a)(3)(A)-(D) closely mirror those
described on the previous slide, to clarify the Acknowledgement/Acceptance and Application
Completeness steps of the review process.
•The language of current Paragraph (b) is proposed to be consolidated into Paragraph (a).
15A NCAC 02Q .0312, Application Processing Schedule
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Department of Environmental Quality
New Paragraph (b) is proposed to outline the processing steps and timelines for reviewing permit modifications
under the 02Q .0300 procedures.
•The procedures and timelines for the first and second steps of the review process
(Acknowledgement/Acceptance and Application Completeness) are the same as that for new permits and
permit renewals, so new Subparagraphs (b)(1) and (b)(2) cross reference the corresponding steps in
Paragraph (a), as appropriate.
•New Subparagraph (b)(3) establishes the non-Title V permit modification review timeline pursuant to S.L.
2023-134, Section 12.11(a), as follows:
•For permits that do not require public notice and comment, new Part (b)(3)(A) requires the DAQ
Director to issue or deny the permit modification within 90 calendar days of receiving a complete
application.
•For permits that are required to go to public notice with an opportunity to request a public hearing,
new Part (b)(3)(B) requires the DAQ Director to publish the draft permit for public notice within 90
calendar days of receipt of a complete application and take final action on the permit within the
timelines specified for new and renewed permits in Subparts (a)(1)(D)(ii) or (a)(3)(C)(ii), as applicable.
•New Subparagraph (b)(4) cross-references the procedures and timelines for taking final action on a
permit after a public hearing.
15A NCAC 02Q .0515, Minor Permit Modification
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Department of Environmental Quality
The DAQ is proposing the following changes to this Rule to satisfy the requirements of G.S.
143-215.108 pursuant to S.L. 2023-134, Section 12.11(a), while remaining in alignment with
EPA’s Title V regulations:
•Revision of the word “shall” to “may” in Paragraph (c), since the DAQ is not required to use
group processing procedures.
•Revisions to Paragraph (d) to specify that the DAQ shall take action on the minor permit
modification within 90 calendar days of receiving an accepted application, except that the
final modified permit shall not become effective until at least 15 days after the end of EPA’s
45-day review period or until EPA has notified the DAQ that EPA will not object to issuance of
the permit modification, whichever is first.
•Paragraph (e) is now obsolete and is proposed to be deleted.
•Minor language clarifications are proposed to Paragraph (f) (relettered as Paragraph (e)).
15A NCAC 02Q .0525, Application Processing Schedule
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Department of Environmental Quality
Rule 02Q .0525 has been reformatted and reorganized, and minor clarifying language changes have been proposed. The more substantive changes include:
•Clarifying revisions throughout to Paragraph (a) to outline the Acknowledgement/Acceptance and Completeness Determination steps of the review process.
•Addition of new Paragraph (b) to specify the timelines for processing permit revisions (which includes permit modifications).
•Subparagraph (b)(1) contains the S.L. requirement to process Title V minor modifications within 90 calendar days of receipt of a complete application.
•Subparagraph (b)(2) contains the S.L. requirement to process Title V significant modifications within 270 calendar days of receipt of a complete application.
•Subparagraph (b)(3) specifies that for all other types of Title V permit revisions, the application review shall be conducted pursuant to Rule 02Q .0514 or .0517, as applicable.
Regulatory Impact Analysis
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Department of Environmental Quality
Possible impacts of the proposed rulemaking:
•increased certainty for regulated entities and state personnel due to a more defined review
timeline for processing complete applications.
•reduced flexibilities that the DAQ can afford to applicants throughout the permit review
process.
•changes to the distribution of permit outcomes, possibly leading to more withdrawn
applications. Since application fees are non-refundable, applicants that withdraw and
resubmit applications would incur an additional permit application fee upon resubmittal.
•changes to DAQ practices for consolidating applications (renewals + modifications or
concurrent modifications).
Regulatory Impact Analysis
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Department of Environmental Quality
Possible impacts of the proposed rulemaking: (continued)
•Applicants choosing to hire external consulting services to assist with preparing their permit applications.
•While the proposed rulemaking does not require the use of external consulting services, DAQ believes it is a likely outcome for a small portion of applicants, particularly those with more complex projects and those without in-house expertise.
•The estimated cost to hire a qualified consultant in North Carolina ranges from an average of $43.55 to $50.65 per hour.
•The total costs incurred by applicants to hire consultants would be largely dependent on the number of hours involved in preparing the application, which can vary greatly between simple and highly complex projects.
•The rulemaking is not expected to result in any impacts on emissions, the environment, or public health, since there are no proposed changes to emission standards or the quality of DAQ’s permit reviews.
•The RIA was approved by the Office of State Budget and Management (OSBM) on August 30, 2024.
Department of Environmental Quality
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Revision of Air Permitting Timelines and Definitions
Tentative Rulemaking Timeline (Subject to Change)

 May 2024 Concept to Air Quality Committee (AQC)
→ September 2024 Draft Rules to AQC
November 2024 Request to Environmental Management Commission (EMC) to Proceed to Comment and Hearing
December 2024 –
February 2025 Public Comment Period and Hearing
March 2025 Adoption by EMC
April 2025 Rules Review Commission Approval
Implementation Date
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Department of Environmental Quality
Pursuant to Sections 12.11(f)-(g) of S.L. 2023-134 as amended by S.L. 2024-1, Section 4.13:
•No later than July 1, 2025, the Department must submit a SIP amendment to EPA requesting approval of these
changes to NC’s permitting program.
•Approximately 60 days after the EPA approves the changes, the amended rules will become effective; therefore,
the history notes of these rules delays the effective dates as follows:
History Note: Amended Eff. ( Pending On the first day of a month that is 60 days after the Secretary of
the Department of Environmental Quality certifies to the Revisor of Statutes that the U.S.
Environmental Protection Agency has approved the amended rule into the North Carolina
State Implementation Plan, pursuant to S.L. 2023-134, Section 12.11, as amended by S.L.
2024-1, Section 4.13.)
•The Secretary must provide the notice and effective date on the DEQ website and by written or electronic notice
to current holders of air permits issued by the Department.
•The changes will apply to applications received on or after the effective date.
Recommendation
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Department of Environmental Quality
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 regulatory impact analysis to proceed to
the EMC for approval to proceed to public comment.
Contact
Department of Environmental Quality
Katherine Quinlan, EIT
Rule Development Branch Supervisor
NC Division of Air Quality
919 707 8702 office
[e-mail]
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Carrie Pickett
Engineer, Rule Development Branch
NC Division of Air Quality
919 707 8705 office
[e-mail]
Department of Environmental Quality
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