The North Carolina Rules Review Commission (RRC) approved the North Carolina Division of Air Quality's (NCDAQ's) "Tailoring Rule" under 15A NCAC 02D .0544 - Prevention of Significant Deterioration (PSD) Requirements for Greenhouse Gases (GHG) on Dec. 16, 2010.  However, because the RRC received more than 10 letters of objection requesting Legislative review, the effective date of the rule was delayed.  

Under North Carolina law, if the RRC receives 10 letters of objection to a rule promulgated by the North Carolina Environmental Management Commission, the rule cannot become effective until the next regular session of the General Assembly, which starts on January 26, 2011.  During the first thirty legislative days of the session, a bill that specifically disapproves the rule may be introduced.  If a disapproved bill is not introduced, the rule becomes effective on the thirty-first legislative day. If a disapproval  bill is introduced, the rule becomes effective on either the day an unfavorable final action is taken on the bill or the day that session of the General Assembly adjourns without taking action on the bill, whichever comes first.

On June 3, 2010, the U.S. Environmental Protection Agency promulgated the final Greenhouse Gas (GHG) Tailoring Rule.  The intent of NCDAQ's rulemaking was to adopt the federal Tailoring Rule requirements, which became effective on Jan. 2, 2011. The final federal tailoring rule regulates permitting of sources of GHG emissions in two steps, essentially raising PSD and Title V permitting thresholds to levels 75,000 or 100,000 tpy, depending upon which regulation is involved and the timing associated with the stepwise implementation occurring in 2011.

Until the Tailoring Rule is adopted in North Carolina, PSD and Title V requirements are triggered at the 100 or 250 tons per year (tpy) emissions levels of carbon dioxide equivalent (CO2e) under the current state regulations.