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The Cost of Clean Air FEES REVISED: 2011

The Cost of Clean Air FEES REVISED: 2011. NACAA Membership Meeting Cleveland, OH October 5, 2011. Budgetary Realities:. Legislative appropriations are down Costs of employee benefits are up Total annual operating fees are down Division work load is up & keeps going up.

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The Cost of Clean Air FEES REVISED: 2011

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  1. The Cost of Clean AirFEES REVISED: 2011 • NACAA Membership Meeting • Cleveland, OH • October 5, 2011

  2. Budgetary Realities: • Legislative appropriations are down • Costs of employee benefits are up • Total annual operating fees are down • Division work load is up & keeps going up

  3. Budgetary Realities: • Legislative appropriations are down: $1.23 million • Benefits & costs of retention are up: 0.86 million • Total annual operating fees are down: 0.86 million • Budgetary shortfall $2.95 million

  4. October Fee ProposalOctober 2010 Council • Criteria pollutant feesremained the same • New hazardous air pollutant fee: Increased fee per ton emissions on HAPs Increased fee per pound emissions for mercury & lead • New area source component: Unpermitted area sources subject to an air pollution standard: $250 per year • New mobile source component: Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year based on monthly throughput. Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per year

  5. October Fee ProposalOctober 2010 Council: Estimated Funding Totals • HAPs/Hg/Pb Fees $ 646,310 • Area Sources 718,750 • Gas Stations 1,500,000 • Gas Distribution Facilities 115,000 • Total $ 2,980,060

  6. Revised Fee ProposalJanuary 2011 Council • Annual operating feeswill stay the same • New increased permit applications fees • New area source component: • Unpermitted area sources subject to an air pollution standard: $250 per year • New mobile source component: Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year based on monthly throughput. Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per year

  7. Revised Estimated Funding January 2011 Council • Permit Application Fees $ 784,700 • Area Sources 718,750 • Gas Stations 1,500,000 • Gas Distribution Facilities 115,000 • Total $ 3,118,450

  8. SPECIFICSJanuary 2011 Council • Add a new section to Subchapter 5 OAC 252:100-5-2.3 that addresses area sources • Modify Subchapter 7, OAC 252:100-7 Part 2 to increase minor source permit application fees • Modify Subchapter 8, OAC 252:100-9 Part 3 to increase major source permit application fees • Include a provision for fee adjustment in Subchapter 5 OAC 252: 100-5-2.3(d)

  9. SPECIFICSArea & Mobile Source ComponentsJanuary 2011 Council Add OAC 252:100-5-2.3. Annual operating fees for area sources of air pollution • Unpermitted gasoline dispensing facilities: • throughout less than 10,000: $250 • throughput 10,000 to 100,000: $500 • throughput 100,000 or more: $750 • Unpermitted gasoline distribution facilities bulk terminals & plants & pipeline facilities: $500 • Unpermitted area sources subject to 40 CFR Part 63.2: $250 • Provisions for fee adjustment (in OAC 252:100-5-2.3(d)) discount fees if other revenues become available

  10. SPECIFICSPermit Application FeesJanuary 2011 Council Modify OAC 252:100-7-3. Permit application fees • Applicability determination: $250 to $500 • Construction permit application fees: • Permit by rule remains $250 • General permit or notice of intent goes from $400 to $500 • Individual permit goes from a range of $1000 - $1500 to $2000 • Amendments of individual permits remain at $500 • Operating permit application fees: • Permit by rule registration stays at $100 • General permit authorization goes from $150 to $500 • Individual permit goes from $500 to $750 • Modification of individual permit from $200 to $750 • Relocation permit $100 to $250

  11. SPECIFICSPermit Application FeesJanuary 2011 Council Modify OAC 252:100-8-1.7. Permit application fees • Applicability determination: $250 to $500 • Construction permit application: • New Part 70 permit source goes from $2000 to $7500 • Modification of a Part 70 source goes from $1500 to $5000 • Authorization under a general permit stays at $900 • Operating permit application: • Initial Part 70 permit goes from $2000 to $7500 • Authorization under a general permit stays at $900 • Renewal Part 70 permit goes from $1000 to $7500 • Significant modification of Part 70 permit goes from $1000 to $6000* • Minor modification of a Part 70 permit goes from $500 to $3000* • Part 70 temporary source relocation remains at $500 * new rates amended since rules were published to the web site

  12. SPECIFICS Revised Fee Proposal January 2011 Council • Annual operating feeswill stay the same • New increased permit applications fees • New area source component: Unpermitted area sources subject to an air pollution standard: $250 per year • New mobile source component: Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year based on monthly throughput. Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per year

  13. Industry Response • *Supportive of increased fee but don’t want to pay • *OAC 252:100-5-2.3(d) provides for adjustments of fees if alternative funding found • *Mobile Source lobby engages

  14. History WASTE TIRE RECYCLING ACT OF 1989

  15. Problem: Traditional means of tire disposal had become illegal or ineffective. Open burning became illegal both under the Clean Air Act and the Solid Waste Disposal Act. Affected municipal solid waste landfills’ ability to take tires because it interfered with their ability to meet new federal and state requirements for daily cover.

  16. Purpose of Act:Establish a program to clean up existing tire dumps and prevent the establishment of new dumpsNature of Act: From the beginning, an incentive program funded by a fee on tires sold for the transportation and proper end use of waste tires

  17. Proposed State Legislation 2011 • HB 1534 and HB 1939 proposed this session • Proposed fee adjustment to help with costs associated with legacy tire dumps • Define “used” tire as opposed to “waste” tire • A “used” tire is not discarded if collected in accordance with the Act STATUS UPDATE: PASSED THE HOUSE COMMITTEE

  18. New State Legislation • HB 1939 • Increases tire fee to $2.50 (tires ≤ 19.5 in) • Allows for incentive to clean up tire dumps • Allows for percentage of fund to be used for area mobile sources of emissions

  19. Air Quality Mobile Source Fee • *28% of $2.50 Tire Fee or $0.70 per tire • *Expected to generate between $250,000 and $300,000 per month • * August receipt $219,282 • *Fee case passed and signed by Governor as well • * May leave permit fee increase in place to make up for mobile source shortfall

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