Legislative Bulletin

August 3, 2001

 

State Government

Over NCCBI's objections, state renews air-quality pact with Tennessee

Industry groups force EMC to narrow scope of air quality rule
Based on input from North Carolina's business community, the state Environmental Management Commission (EMC) significantly narrowed the scope of an air quality rule prior to its adoption in a recent rulemaking action. 

Under federal regulations issued by the U.S. Environmental Protection Agency (EPA), North Carolina and several other states are required to develop rules which limit emissions of nitrogen oxides (NOx) from power plants and large industrial emission sources (rated above 250 million BTU per hour).  However, in its draft rules, the EMC proposed requiring additional emission reductions from small industrial emission sources (rated between 50 million and 250 million BTU per hour).  The inclusion of small emission sources would have significantly increased the number of industrial facilities affected by the rule.

Recognizing that the EMC was considering the adoption of a temporary rule that exceeded the mandatory federal requirements, R.J. Reynolds Tobacco Co., the Manufacturers and Chemical Industry Council and NCCBI filed written comments in opposition to the language of the proposed rule. The industry groups questioned whether the NOx reductions for small emission sources were needed to protect air quality. 

Industry representatives also challenged the legality of the EMC's proposal to adopt the small emission source requirements as a temporary rule, rather than as a permanent rule. North Carolina law only allows adoption of temporary rules in limited circumstances, including when a state agency adopts a rule to remain in compliance with a federal law. 

Because the EPA did not require NOx reductions from small emission sources, the industry groups argued that the EMC lacked authority to bypass the permanent rulemaking process, which includes oversight by the Rules Review Commission and the General Assembly.  After reviewing the comments provided by the industry groups, the EMC decided on July 12 to strike the provisions requiring emission controls on small emission sources prior to adopting the temporary rule.

Therefore, this decision for the business community illustrates the importance of industry's awareness, involvement and advocacy in agency rulemaking actions.


Over NCCBI’s objections, state extends air-quality pact with Tennessee
North Carolina and Tennessee have extended an agreement for ensuring that new industrial emissions do not degrade air quality in the Great Smoky Mountains and other pristine natural areas. The development came after a Wake County Superior Court judge dismissed a lawsuit filed by NCCBI contending that the agreement should be subject to public comment and other hearings required by the state’s rulemaking procedures.

The agreement, or memorandum of understanding (MOU), sets procedures for state and federal agencies to follow in exchanging information in the review of permit applications for new or expanded utilities and other large industries. The procedures only apply to permit reviews for facilities whose air emissions could be large enough to affect air quality in national parks and wilderness areas -- generally less than a half-dozen permits each year in North Carolina.

"This agreement is an important part of our ongoing efforts to protect and improve air quality in the Southern Appalachian Mountains,” said Bill Ross, secretary of the N.C. Department of Environment and Natural Resources (DENR), who signed the document for North Carolina. "In extending this pact, North Carolina and Tennessee have agreed to continue working together with involved federal agencies in protecting air quality and visibility in our most pristine natural areas, from the Great Smoky Mountains to the coast.

The two states initially signed the agreement in December 1998 and later agreed to extend it until July 31, 2001. Meanwhile, the agreement was challenged in a lawsuit by NCCBI, which contended that DENR had signed the agreement without following proper rule-making procedures. However, Wake Superior Court Judge J.B. Allen, following a hearing last week, dismissed the lawsuit on Monday and ruled that DENR had acted properly.

The newest agreement will expire if not extended by Jan. 31, 2002. The states are extending the agreement for only six months because the U.S. Environmental Protection Agency (EPA) is expected to issue new nationwide standards for reviewing permits for large industrial air emissions sources during the coming year.

The agreement establishes the process for federal land managers to review applications for facilities whose emissions could affect Class I Areas, which include national parks and wilderness areas. Under the procedures, large new industries are required to conduct computer modeling to determine whether their emissions would affect air quality in Class I Areas. Industries benefit from having a more consistent permit review process and predetermined deadlines for federal reviews. Federal land managers benefit from receiving notifications about new facilities early in the permit application process, but they must respond within 60 days. Previously, there had been no deadline.

The procedures do not give federal land managers the authority to veto permit applications. The state maintains full permitting authority, but federal officials can request stricter controls on facilities whose emissions could degrade air quality in Class I Areas. For more information on North Carolina’s efforts to improve air quality, visit the DAQ Web site at: http://daq.state.nc.us.


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