Proposed Revisions to North Carolina’s Permit Review Timeline Rule

On February 4, 2025, the North Carolina Division of Air Quality (NC DAQ) hosted a public hearing to receive comments on the proposed Permit Review Timeline Rule revisions. NC DAQ has proposed revisions to their construction and operating permit rules and Title V procedures to change review timelines for air permit modification applications in accordance with Session Law (S.L.) 2023-134, Section 12.11. (a)-(c), which resulted from the 2023 Appropriations Act for North Carolina (passed in October of 2023). Section 12.11.(a) of the S.L. revises General Statue (G.S.) § 143-215.108, Subparagraph (d)(2) to specify maximum periods for NC DAQ to review and process air permit modification applications.

Revisions to this Statute specify the following timelines for review: 90 calendar days for review of a minor air permit modification and 270 calendar days for review of a major air permit modification. These timelines are contingent upon the receipt of an administratively complete application. Review timelines under S.L. 2023-134, Section 12.11.(a) only impact permit modifications; therefore, the proposed revisions do not affect the review processes for all other types of permit actions (e.g., an air permit application for a greenfield site).

A key emphasis of these revisions is the updates made to the definitions of specific terms found in G.S. § 143-213. Newly created subdivision 1a now includes a definition for the term administratively complete which is “that all information required by statute, regulation, or application form has been submitted to the Department for the purpose of processing a permit application.” The minimum processing elements for permit modification applications are outlined in 15A of the North Carolina Administrative Code (NCAC) 02Q .0305 or 15A NCAC 02Q .0505 and .0507.

Under 15A NCAC 02Q .0300, once a permit modification application not requiring Prevention of Significant Deterioration (PSD) or case-by-case maximum achievable control technology (MACT) review is submitted, NC DAQ will send the applicant an acknowledgment letter that the application was received and whether it was accepted for processing within 10 days of receipt of the application. If an application is accepted for processing, the timeline for review begins from the receipt date of the permit modification application and not the date on which the acknowledgement letter was issued. If the permit modification is not accepted for processing, the acknowledgement letter will list the application elements of 15A NCAC 02Q .0305 that are missing from the application package. For applications accepted for processing under 15A NCAC 02Q .0300, NC DAQ will review the application to determine whether it is complete or incomplete within 45 days of receiving the permit modification application. NC DAQ will notify the applicant in writing specifying either a completeness date, request of additional information, or request that the applicant rewrite and re-submit the application.

Similar to the aforementioned proposed revisions for standard construction and operating permit modification applications (those outlined in 15A NCAC 02Q .0300), revisions to the permitting timeline for Title V permit modification applications (those outlined in 15A NCAC 02Q .0500) have been proposed as well. The processing timeline for Title V permit modification applications is the same as those outlined for 15A NCAC 02Q .0300, with minimum application elements being specified in 15A NCAC 02Q .0505 and .0507. A slight difference in this rule is that NC DAQ will review the application to determine whether it is complete or incomplete within 60 days of receiving the Title V permit application. NC DAQ will still notify the applicant in writing to specify either a completeness date, request for additional information, or request that the applicant rewrite and re-submit the application.

For all permit types, NC DAQ may still request additional information during the review process. It is important to note that if the applicant does not address additional information requests by the date requested, NC DAQ will cease processing the application.

A completeness determination is not necessary for Title V minor modification applications. Within 90 days of receiving an application for a minor modification that is accepted by NC DAQ for processing, one of the following actions will be taken:

1. The permit modification will be issued and transmittal of the proposed permit to the United States Environmental Protection Agency (U.S. EPA) will take place. U.S. EPA will have a 45-day period for review. The effective date of the modified permit will be 60 days after the issuance date unless U.S. EPA objects in writing to the modified permit.
2. The permit modification application will be denied.
3. The requested modification application will be determined to not qualify for the procedures set by 15A NCAC 02Q .0515 and should therefore be processed in accordance with 15A NCAC 02Q .0516.

For Title V major permit modifications, 15A NCAC 02Q .0525(b)(2) states that NC DAQ shall complete the technical review of the major permit modification received in accordance with 15A NCAC 02Q .0516 in accordance with 40 CFR 70.7(e)(4)(ii) within 270 calendar days of receipt of a complete application. From this point, NC DAQ will then complete a review of the application and either issue the modified permit, deny the modified permit, or publish the modified permit for public notice and comment. If a permit revision is not deemed a minor modification in accordance with 15A NCAC 02Q .0515 or a significant modification pursuant to 15A NCAC 02Q .0516, the application is then to be reviewed in accordance with 15A NCAC 02Q .0514 or .0517 as applicable.

The public comment period for these rule revisions ends March 3, 2025, and DAQ is required to submit a State Implementation Plan (SIP) amendment to U.S. EPA by July 1, 2025. Approximately 60 days after U.S. EPA approves the changes, the amended rules will become effective and the changes will apply to applications received on or after the effective date. According to a recent DAQ presentation, these revisions will provide increased certainty due to a more defined review time but may reduce flexibilities DAQ can afford to applicants (e.g., less consolidation of applications) and could lead to more withdrawn applications. Application fees are non-refundable, so applicants that withdraw and re-submit applications would pay the application fee again upon resubmittal.

ALL4 can help your facility with environmental permitting projects and can assist in driving timelines to achieve optimal efficiency with your air quality permitting projects. For any assistance or further questions regarding the proposed revisions to North Carolina’s permit review timeline rule or compliance with NC air regulations, please contact Thomas Timms at ttimms@all4inc.com or 919-694-7541.