1. Joelle Burleson Planning Section, Rules Development Branch Division of Air Quality Status of Periodic Review and Expiration of Existing Rules per Regulatory Reform Act (S.L. 2013-413) 1

2. Review Process 3 Steps Step 1 [G.S. 150B-21.3A(c)(1)]- Agency determination Initial determination of classification 60 day public comment period Step 2 [G.S. 150B-21.3A(c)(2)]- Rules Review Commission (RRC) review Reviews agency’s report Makes final determination regarding classification Step 3 [G.S. 150B-21.3A(c)(3)]- Administrative Procedure Oversight (APO) Committee consultation 60 day opportunity to review final determination before it becomes effective 2

3. Step 1-Agency Determination Initial Classification as: Necessary with substantive public interest Necessary without substantive public interest Unnecessary 3

4. Step 1 Continued Public Comment For at least 60 days Comments on determination and rules Comments submitted on the web (http://rulesreview.ncdenr.gov/)http://rulesreview.ncdenr.gov/ Agency reviews and responds in report Agency submits report to RRC Initial determination All comments received Response to comments 4

5. Steps 2 and 3 Step 2 - RRC review Reviews report and public comments to determine if rule has been classified correctly Submits final determination report to APO Committee Step 3 - APO consultation Final determination does not become effective until APO consultation concludes Have 60 days to review 5

6. Effect of Final Classification Unnecessary Rule will expire and be removed from code following APO finalization of report Necessary without substantive public interest Rule will remain in effect without further action Necessary with substantive public interest Rule shall be readopted as if it was new in accordance with APA 6

7. Air Quality Rules 353 Air Quality Rules 15A NCAC 02D, Air Pollution Control Requirements (263 rules) 15A NCAC 02Q, Air Quality Permits Procedures (90 rules) Subchapters interrelated Most rules are classified as “Necessary with substantive public interest” Majority of Rules are federally required/approved under Clean Air Act (CAA) authorities (CAA Section 110 state implementation plan (SIP), Section 111d emissions guidelines, Title V and others) Identification that rule is federally required does not necessarily preclude repeal as part of re-adoption process if warranted; however, a demonstration to EPA may be required. (e.g., 110(l) demonstration of non-interference with attainment or maintenance of a National Ambient Air Quality Standard (NAAQS)) 7

8. 15A NCAC 02D and 02Q Summary Necessary with Substantive Public Interest Necessary without Substantive Public Interest UnnecessaryTotal 15A NCAC 02D232427263 15A NCAC 02Q9000 Total322427353 8

9. Unnecessary Rules 15A NCAC 02D.1600 General Conformity 3 rules Requirement for states to have in rules made optional Comments received Requirements should be retained to ensure federal actions conform to maintenance plans Are still federal requirements just placed in different portion of federal regulations Will need to be submitted for SIP approval Classification Unnecessary – Repealed by Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and federal regulations revised to remove requirement that states have to include in their rules/SIPs 9

10. Unnecessary Rules, cont’d 15A NCAC 02D.2400 Clean Air Interstate Rules (CAIR) 13 rules Cross State Air Pollution Rule (CSAPR) stay lifted, CAIR will be phasing out Comments received Should retain until ongoing CSAPR litigation resolved Will need to be submitted to EPA for SIP approval Necessary and should be updated to include CSAPR Classification Unnecessary-CAIR struck down and CSAPR being implemented Reinstatement of CAIR not anticipated 10

11. Unnecessary Rules, cont’d 15A NCAC 02D.2500 Clean Air Mercury Rules (CAMR) 11 rules Courts previously determined developed under inappropriate CAA authority and overturned rules (rules replaced by Mercury and Air Toxics Standards (MATS)) Comments received Necessary and should be strengthened rather than eliminated Mercury emissions from utilities pose grave health threats Should remain in place until litigation resolved and state promulgates rules implementing MATS Provisions that provide protection additional to MATS should be retained given impairment of state waters 11

12. Unnecessary Rules, cont’d 15A NCAC 02D.2500 Clean Air Mercury Rules (CAMR) Classification Unnecessary CAMR vacated and MATS being implemented 89% reduction in mercury emissions from 2002 through 2013 Deposition modeling estimates by 2016 3.6% of mercury deposited in North Carolina comes from sources in North Carolina Address.2511 requirements at September AQC and November EMC 12

13. Rules Without Substantive Interest 15A NCAC 02D.0103, Copies of Referenced Federal Regulations 15A NCAC 02D.0104, Incorporation by Reference 15A NCAC 02D.0105, Mailing List 15A NCAC 02D.1905, Regional Office Locations No Comments Received 13

14. Rules With Substantive Interest Comments received on 8 rules already classified w/interest 02D.0402, Sulfur Oxides 02D.0405, Ozone 02D.0536, Particulate Emissions From Electric Utility Boilers 02D.1104, Toxic Air Pollutant Guidelines 02D.1802, Control Of Odors From Animal Operations Using Liquid Animal Waste Management Systems 02Q.0101, Required Air Quality Permits 02Q.0113, Notification In Areas Without Zoning 02Q.0304, Applications To be addressed in readoption process 14

15. Next Steps Determinations approved by AQC – Jan 2015 Seeking approval from EMC - March 2015 Public Comment Period- mid-March to mid-June 2015 Report to AQC - July 2015 Update to AQC - September 2015 Report to EMC for final approval - November 2015 Report Due to RRC - By November 15, 2015 RRC Reviews Report – December 17, 2015 Final Determination Effective after APO consultation- Beginning of 2016 Schedule for Rulemaking to re-adopt rules in accordance with APA developed with RRC staff and re-adoption process begins 15

16. Contact Information Joelle Burleson Rules Development Branch Supervisor Planning Section, Division of Air Quality, DENR joelle.burleson@ncdenr.gov 16