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2. What I Will Talk About. Legislative Goals and Air Quality MissionInitial Financial AssumptionsCurrent Financial statusDecisions on services providedBenchmarking study and service improvement recommendations. 3. Air Quality Programs. Air Non-Point
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1. 1 Alaska Air Permit Program Program Mission, Workload, and Budget Issues Reintroduce myself
Note that time allotted is one hour & importance of sticking to schedule
Explain that this is a brief Overview
All the details are in department’s workload and Funding analysis & benchmarking reports
Please note your questions and seek answers in background documents.
If still confused we can explain at a later time.
Reintroduce myself
Note that time allotted is one hour & importance of sticking to schedule
Explain that this is a brief Overview
All the details are in department’s workload and Funding analysis & benchmarking reports
Please note your questions and seek answers in background documents.
If still confused we can explain at a later time.
2. 2 Five Major topics, touch on each brieflyFive Major topics, touch on each briefly
3. 3 Air Quality Programs Air Non-Point & Mobile Sources Program
manage small and diffuse sources of air pollution.
Air & Water Data & Monitoring Program
Technical support for air quality management
Air Permits Program
Overall Air Quality Mission includes more than air permit
NPMS - Nonattainment, I&M, Ethanol, Air Toxics
AWDM - run monitoring sites, Review Monitoring plan, review QA plansOverall Air Quality Mission includes more than air permit
NPMS - Nonattainment, I&M, Ethanol, Air Toxics
AWDM - run monitoring sites, Review Monitoring plan, review QA plans
4. 4 Air Permits Program Manage point sources of air pollution through permits and emission limitations
State Implementation Plan
Title I Permitting
Title V Permitting
Small Business Assistance
Stationary Source Compliance
Air Quality Complaints
Mostly concerned with Clean Air Areas
Implement stationary source programs required by the clean air act
Describe eachMostly concerned with Clean Air Areas
Implement stationary source programs required by the clean air act
Describe each
5. 5 Legislative Intent U.S. Congress
1970 Clean Air Act - State Implementation
1977 CAA Amendments - New Source Review
1990 CAA Amendments - Operating Permits
Alaska’s Implementation
1972 - SIP, including permit-to-operate
1983 - Revised, adds New Source Review
1990 - Statute, change to construction and operating permit
Federal CAA has undergone changes over the past 30 years
State law has followed changes
CAA has federal system - State implement with federal oversight
If state fails to implement, Fed implement
Other sanctions can apply
Loss of highway funds
Federal permit fees Federal CAA has undergone changes over the past 30 years
State law has followed changes
CAA has federal system - State implement with federal oversight
If state fails to implement, Fed implement
Other sanctions can apply
Loss of highway funds
Federal permit fees
6. 6 Legislative Intent Alaska Legislature1
Have a program to prevent, abate, control, and identify air pollution.
Comply with the federal Clean Air Act.
Ensure continued receipt of federal highway funds.
Implement in a manner that meets meets legislative goals. Legislature wanted to avoid sanctions & have state run program
Adopted Statute in 1993
Stated purposesLegislature wanted to avoid sanctions & have state run program
Adopted Statute in 1993
Stated purposes
7. 7 Legislative Goals Meet Federal requirements
Efficient and cost effective permitting
Accountability on Program Cost Recovery
Ensure productivity of businesses
Protect health & welfare of Alaskans. Goals that are listed in the actual session laws
Deal with what the program is expected to achieve
Goals that are listed in the actual session laws
Deal with what the program is expected to achieve
8. 8 Legislative Goals Contain costs
Minimize permitting staff
foster accountability
improve efficiency of government
Use appropriate contracting authority Deal with how the department should achieve the goals Deal with how the department should achieve the goals
9. 9 Financial History Funding sources
Federal Restrictions
CAPF Initial Fee Rate Determination
Changes in Initial projections
Overall Program Cost & Change Summary Talk about some of the financial assumptions about delivering the air quality program, and the current status of those factors.
Funding sources - discuss the funding sources we have been using
Federal limits regarding what funding sources can be used
How we decided on the initial permit fee rate
What has changed in our original projections
Brief summary of the current situation financially for the programTalk about some of the financial assumptions about delivering the air quality program, and the current status of those factors.
Funding sources - discuss the funding sources we have been using
Federal limits regarding what funding sources can be used
How we decided on the initial permit fee rate
What has changed in our original projections
Brief summary of the current situation financially for the program
10. 10 Funding sources Clean Air Protection Fund (CAPF)
Permit Administration Fee - Direct Costs
Emission Fees - Indirect Costs
Federal 105 Grant
One-time Federal Grants
FY 2003 - Some General Fund Statutory designated fund
EPA grant for Clean Air Act implementation
Has been static for several years
Also supports the other air programs
Requires state Match
EPA reluctant to increase base - generally wants new work
New work has been one time funds
Most recent legislature has approved some general fund amounts to increase service in oil & gas sector Statutory designated fund
EPA grant for Clean Air Act implementation
Has been static for several years
Also supports the other air programs
Requires state Match
EPA reluctant to increase base - generally wants new work
New work has been one time funds
Most recent legislature has approved some general fund amounts to increase service in oil & gas sector
11. 11 Initial Permit Administration Fee 1993 estimate assumed 45 positions billing with 31 billing 62% of their time.
Remaining 38% unbilled time also funded by Permit Administration Fee
Manager and clerical time also factored into the technical staff billable rate.
Total Cost ($2,642,600) divided by billable hours (33,870) result in $78.02 per hour.
Direct costs
Direct costs include all permit review, issuance, compliance inspections, facility data reporting, and rectifying non-compliance (Not enforcement)
Direct costs
Direct costs include all permit review, issuance, compliance inspections, facility data reporting, and rectifying non-compliance (Not enforcement)
12. 12 Initial Emission Fee 1993 estimate of 14.7 FTE needed to provide the indirect services.
Costs for these services totaled $1,104,500
Estimated 218,000 tons per year of billable emissions
Divided cost by emissions to give Emission fee of $5.07 per ton. Indirect costs
Not service to specific facility
rent, utitlities, management, accounting, other costs Indirect costs
Not service to specific facility
rent, utitlities, management, accounting, other costs
13. 13 Changes in Initial Assumptions - Assessable Emissions Emission Fees pay for indirect costs
Indirect costs have increased.
Emission estimates have decreased
Per Ton rate has not changed
Indirect revenue has decreased Emissions are a way to pro-rate the indicrect costs
Emissions are a way to pro-rate the indicrect costs
14. 14 Changes in Initial Assumptions - Assessable Emissions Explain slide
Note DeclineExplain slide
Note Decline
15. 15 Changes in Initial Assumptions - Billable Staff Time Total Staff reduced from needed 45 to actual 25.
Estimated Direct Cost reduced proportionally
1993 = $2,642,600
2002 = $1,467,648
18,816 billable hours needed in FY 2002
14,506 billable hours annual average FY 99-01
Never authorized the number of staff deemed necessary in 1993
Prorated our estimated costs by number of staff
Billable hours needed based on $78 per hour
Have not been able to bill enough hoursNever authorized the number of staff deemed necessary in 1993
Prorated our estimated costs by number of staff
Billable hours needed based on $78 per hour
Have not been able to bill enough hours
16. 16 Changes in Initial Assumptions - Billable Staff Time Explain chartExplain chart
17. 17 Overall Program Cost & Change Summary EPA default cost $5.4 million
operating permits program alone
1993 estimates required budget $ 3.7 million
FY 2002 budget was $2.3 million.
$2.3 million can not be raised through fees without a change in the fee rates.
18. 18 Problems Affecting Program Viability Service expectations not met
Budget authority restriction affects ability to address service expectations
Inability to generate revenue to match budget authority further reduces ability to meet service expectations
Ability to generate fees is only one of our problems
All three are linked
Ability to generate fees is only one of our problems
All three are linked
19. 19 Steps Taken to Address Service Revise Title V permit commitment
Commit to Permit Fee Study
Implementing Benchmarking findings
Increased opportunity for permittee input in Title V permits
Direct management intervention in permitting
Management Decisions to address program problems
Main steps taken to address service expectations
Want to highlight Benchmarking Management Decisions to address program problems
Main steps taken to address service expectations
Want to highlight Benchmarking
20. Benchmarking study was conducted in the winter of 2000 to identify how we could improve construction permitting. Benchmarking study was conducted in the winter of 2000 to identify how we could improve construction permitting.
21. 21 Steps taken to Manage within Budget Authority Delayed hiring of staff
Non-billable staff positions held vacant
Restricted expenditures
One time grant-funded benchmark implementation
Temporary grant funding of construction permit position
In addition to service improvements, we had to live within our budget authority
Management decisions made to stay within authority
Several of these are one-time or short term fixes - all have consequences
Delayed hiring of staff effectively eliminated our small business assistance efforts. In addition to service improvements, we had to live within our budget authority
Management decisions made to stay within authority
Several of these are one-time or short term fixes - all have consequences
Delayed hiring of staff effectively eliminated our small business assistance efforts.
22. 22 Step taken to Address Revenue Generation Force re-estimation of emission fees annually or default to potential emissions
Establish billable hour targets for technical staff
Collect significant past due accounts
This deals with ability to generate the cash that our budget allows us to spend
First designed to capture emission increases as well as decreases
Second was to force staff to focus on direct permit service work
Third was to pay attention to past due accounts which were previously unattended due to staff shortages This deals with ability to generate the cash that our budget allows us to spend
First designed to capture emission increases as well as decreases
Second was to force staff to focus on direct permit service work
Third was to pay attention to past due accounts which were previously unattended due to staff shortages
23. 23 Direct impacts of Management Decisions Immediate Service impacts
Service concerns that remain un-addressed
Longer term consequences
immediate impacts to ability to provide service
Prevents us from addressing some of the other service concerns that remain unaddressed
EPA concerns with progress of Title V issuance
EPA concern with adequacy of Title V fees
Loss of experienced staff
Possible loss of state primacy immediate impacts to ability to provide service
Prevents us from addressing some of the other service concerns that remain unaddressed
EPA concerns with progress of Title V issuance
EPA concern with adequacy of Title V fees
Loss of experienced staff
Possible loss of state primacy
24. 24 Immediate Service impacts Operating Permits
Construction Permits
Compliance
Program Development
Administrative Group
Small Business Assistance program
Air Permits management team