Overview of Air Permitting Fees In Illinois Laurel L. Kroack Chief, Bureau of Air Illinois EPA laurel.kroack@illinois.go

1. Overview of Air Permitting Fees In Illinois Laurel L. Kroack Chief, Bureau of Air Illinois EPA laurel.kroack@illinois.gov (217) 785-4140 October 5, 2011

2. Overview of Air Permitting Fees Annual site fees for permitted sources Construction Permit Application fees Provisions for “portable emissions units” – no fee for each move of a permitted unit (Portion of) Sales Tax Revenue on “Sorbents”

3. “NEW” Illinois Permit Fees Public Act 97-0095, signed July 12, 2011 Fee for ROSS (i.e., Registration program) Operating (Site) Fee Increases Fee for Expedited Permits Divert Portion of Sales Tax Revenue on Sorbents

4. Registration of Smaller Sources (ROSS) Annual fee: $235 • Not required to obtain CAAPP or FESOP permit ; • < 5 tpy (actual) combined criteria pollutants; • < 0.5 tpy (actual) combined HAPs; • < 0.05 tpy (actual) lead and mercury emissions; • May NOT have an emission unit subject to a NESHAP (excluding Area Source NESHAP) • Re-registration each year • Results in loss of fee revenue, but expect to save on personnel costs

5. Expedited Permits - Discretionary • 4x standard construction permit fee, not to exceed $100,000 • 4x recurring permit fees (annual fees, operating fees, or discharge fees), for each recurring permit expedited • Where no standard permit fee is required, expedited permit fee is negotiated

6. Expedited Permits, cont. All expedited permit fees are in addition to required standard permit fees Expedited permit review time period is negotiated Negotiated refund of fee on prorated basis - If Illinois EPA fails to complete review within agreed-to time period

7. Permit Fee IncreaseBeginning January 1, 2012 • Clean Air Act Permit Program (CAAPP or Title V) Permits • From $18/ton to $21.50/ton • Maximum fee from $250,000 to $294,000 • “Fee Allowable” – Permittee sets, > actual, not to exceed permit allowable

8. Permit Fee IncreaseBeginning January 1, 2012 • Federally Enforceable State Operating Permit or FESOP • Minimum (< 25 tpy): From $200 to $235 • 25 -100 tpy sources: From $1,800 to $2,150 • Maximum (> 100 tpy): From $3,500 to $4,112

9. Permit Fee IncreaseBeginning January 1, 2012 • Lifetime Operating Permit • Minimum (< 25 tpy): From $200 to $235 • 25 -100 tpy sources: From $1,800 to $2,150 • Maximum (> 100 tpy): From $3,500 to $4,112

10. Permit Fee IncreaseBeginning January 1, 2012 • Additional Revenue from all 3 permit categories is expected to be $1 - $3.2 million per year • NOTE: If a source operates without a permit after June 30, 2003, the Illinois EPA may recover 2x the site fees that were “avoided” – in addition to other enforcement penalties

11. Sales Tax Revenue • Divert Portion of Sales Tax from “Sorbent” Sales • Beginning July 1, 2011 • “Sorbents” used to comply with Illinois Environmental Protection Act or federal Clean Air Act • 80% of the net sales tax revenue to CAAPP (Title V) Permit Fund • 6.25% general sales tax rate • Total payment shall not exceed $2,000,000 in any fiscal year • Industry’s idea !

12. Construction Permit Fees Detailed fee schedules: Based on amount of effort required to process an application. Single fee schedule for CAAPP (Title V) and FESOP sources Separate fee schedule for smaller sources

13. Construction Permit FeesCAAPP & FESOP Sources New emission units: $4k for first new emission unit $1k for each addt’l emission unit BUT, not to exceed $10k Modified emission units: $2k for first modified unit $1k for each addt’l modified unit

14. Construction Permit Fees Not Currently - But Will Be - Subject to CAAPP or FESOP • $5k Entry Fee • $25k Fee IF new unit is: • Subject to Local Siting (waste facilities) • Commercial Incinerator • Municipal Waste or Tire Incinerator • Commercial Power Generator • Designated by IEPA as a “Complex” source via rulemaking

15. Construction Permit Fees CAAPP & FESOP Sources $3k per pollutant for each of: Netting Exercise Other PSD avoidance Nonattainment NSR New Sources: $12k if subject to PSD $20k if subject to Nonattainment NSR (NA-NSR)

16. Construction Permit FeesCAAPP & FESOP Sources $6k for a Major Mod. subject to PSD $12k for a Major Mod. subject to NA-NSR $5k per unit if MACT Determination Req’dand project is NOT subject to BACT or LAER $10k if Public Hearing is Held

17. Construction Permit Fees Source Is Not & Will Not Be Subject toCAAPP or FESOP Program • $500 Entry Fee if a New Source, i.e., no Operating Permit issued • $15k Fee IF new unit is: • Subject to Local Siting (waste facilities) • Commercial Incinerator • Municipal Waste or Tire Incinerator • Commercial Power Generator • Designated by IEPA as a “Complex” source via rulemaking

18. Construction Permit Fees Source Is Not & Will Not Be Subject to CAAPP or FESOP Program $500 for Single New Unit $1k for >one New Unit $500 for 1 - 2 Modified Units $1k for > 2 Modified Units $10k if Public Hearing is Held

19. Fee Process For Construction Permit Applications Fee Estimate (Form 197-FEE) must be included with application Payment, as estimated on Form 197-FEE, must be included with application (check or money order, no cash) May reject applications if 197-FEE form or the $$$ is not submitted with the application May revoke issued construction permit if fee unpaid

20. “Exceptions” For ConstructionPermit Application Fees $500 filing fee (only) for certain simple projects at a permitted source: Proposed remediation project; New control device; Requested administrative change to an issued construction permit; or Renewal of previously issued Construction Permit. No fee for a “timely” (filed within permit appeal period) request to correct IEPA error in permit