Noncoal Program Fees

1. Noncoal Program Fees

2. Applicable Regulations • Chapter 77 (Noncoal Mining) • Chapter 102 (Erosion and Sedimentation Control) • Chapter 105 (Dam Safety and Waterways Management) • Chapter 92 (NPDES) and 93 (Water Quality Standards) • Chapter 96 (Water Quality Standards Implementation) • Chapters 121, 123, 127 and 129 (Air) • Chapter 209 (Surface Mine Safety) and 211 (Explosives)

3. Permittees-as of the end of 2009 • There were 1547 entities that hold permits

5. Existing Permits-as of the end of 2009 • Large • 691 Active • 31 Inactive • 10,000 Ton • 291 Active • 6 inactive • Small (<=2000 Ton) • 1231 Active • 32 Inactive

6. Permits • About 600 applications a year are processed

10. Inspections • Calendar Year 2008 • 6069 Routine Inspections • 425 Blasting Inspections • Calendar Year 2009 • 6308 Routine Inspections • 397 Blasting Inspections

11. Noncoal Act Fee Language • The department is authorized to charge and collect from persons a reasonable filing fee, which shall not exceed the cost of reviewing, administering and enforcing the permit.

12. What do other states do? • Ohio • New York • Maryland • West Virginia

13. Ohio • Filing fee $500 on approval • $500/yr with annual report, • Small (10,000 tons) is $250 • Renewal fee $1000 • Reclamation fee $75/ac.

14. New York • Permit fee per year: • $400 minor • $700 (up to 5 acres) • $900 (5-10 ac) • $1500 (10-20 ac) • $4000 (20-30 ac) • $8000 (30+ ac)

15. Maryland • Right of entry recording fee $40 • Permit fee per year $12/ac ($1000 max) • Reclamation fee $30/ac

16. West Virginia • Permit application $1000 • $1000 at permit issuance • Renewal/transfer/major rev. $500 • Minor rev. $200 • NPDES-new and renewal $1,000 • Annual NPDES permit fee $1,000

19. Draft Fee Proposal • Fees to pay for the cost of: • Permit review • Inspection (administering the permit) • Calculations based on Workload Analysis • Hours for Review • Inspection Time • Personnel Costs (salary & benefits)

20. Rulemaking Process • Amend Chapter 77 to incorporate new fees • Proposed Rulemaking (EQB) • Subject to comments • Public • Legislative Committees • Independent Regulatory Review Commission • Public Hearings • Response to Comments (C & R document) • Published as Final Rulemaking

21. Timeline • The Draft Regulation is now in the DEP internal review process • Environmental Quality Board-June 15 • Pa Bulletin in August (?) • Hearings in September (?) • Final to EQB in 2011

22. NSMCRA Fund Noncoal Surface Mining Conservation and Reclamation Fund … shall be used by the secretary for the purpose of the revegetation or reclaiming of land affected by surface mining of any minerals, for restoration or replacement of water supplies affected by surface mining operations or for any other conservation purposes provided by this act; and, for such purposes, are specifically appropriated to the department by this act.

23. Penalty Revenue Fiscal Year Amount 04-05 $67,771.10 05-06 $137,738.00 06-07 $193,662.00 07-08 $144,443.22 08-09 $114,597.00

24. Environmental Education Fund • 5% of penalties are required to go to the EEF.

25. Enforcement • Some enforcement costs are captured through civil penalty assessments (Cost to the Commonwealth) • However, only a fraction of the violations (~20%) result in payments

26. Other Revenue Sources Fiscal YearLicense FeeInterest 04-05 $233,356.00 $417,588.91 05-06 $231,373.38 $740,614.19 06-07 $216,280.00 $771,851.33 07-08 $221,100.00 $626,584.82 08-09 $218,800.00 $343,837.47

27. Program Data-Last FY • 140 employees • 40 Full Time Equivalents • About $1.5 M per year for salary costs • 40% for benefits puts the personnel costs at about $2.2 M per year • Total program cost is about $ 3 M per year

28. Fee Calculation Basis • Workload Analysis • Assigns hours to tasks • Used to manage staff levels • Wage Rates • Benefits • 40% of salary • Overhead • About 40% of personnel costs

29. Workload Analysis • Permits • Small Permit-9 hours • Large Permit • Groundwater-300 hours • No groundwater-200 hours • Blast Plan-8 hours • Completion Report-10 hours

30. Inspection Workload Numbers • Large • 4 per year • 7 hours per inspection • Small • 2 per year • 2 hours per inspection

31. Fee Calculation Example • Large permit that will encounter groundwater • Workload Time-300 hours • Wage Rate-$37.44 per hour • 40% benefits • 40% overhead • 300 X $37.44 X 1.4 X 1.4=$22,014.72 • Round to $22,025

32. Other Permit Fee Calculations • Small Noncoal $525 • Blast Plan $475 • Completion Report $600 • Large Major Amend-GW $3,850 • Large Major Amend-Not GW $1,600 • Large Transfer $900

33. Annual Administration Fee • Paid each year • Based on type of permit (small or large) • Inspection Frequency

34. Administration Fee Calculation Example • Large Noncoal with Blasting • 4 inspections per year by the inspector • 1 inspection per year by the Blasting Inspector • 7 hours per inspection • $28.75 per hour for inspector • $32.83 for the Blasting Inspector • 4 X 7 X $28.75 X 1.4 X 1.4=$1449.00 ($1,450) • 1X 7 X $32.83 X 1.4 X 1.4=$413.66 ($400) • $1,850 per year

35. Administrative Fee Calculations

36. How does the proposal compare with the other states?

39. Questions, Comments or Suggestions