The Cost of Clean Air FEES REVISED: 2011

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

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 million $2.95 October Fee Proposal October 2010 Council

Criteria pollutant fees remained 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 October Fee Proposal October 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 $ Revised Fee Proposal January 2011 Council Annual operating fees will stay the same New increased permit applications fees

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 New area source component: Unpermitted area sources subject to an air pollution standard: $250 per year Revised Estimated Funding January 2011 Council Permit Application Fees Area Sources Gas Stations

Gas Distribution Facilities Total $ 784,700 718,750 1,500,000 115,000 $ 3,118,450 SPECIFICS January 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) SPECIFICS Area & Mobile Source Components January 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 SPECIFICS Permit Application Fees January 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 SPECIFICS Permit Application Fees January 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 modification of Part 70 permit goes from $1000 to Significant $6000* Minor modification of a Part 70 permit goes from $500 to $3000* 70 temporary source relocation remains at $500 * newPart rates amended since rules were published to the

web site SPECIFICS Revised Fee Proposal January 2011 Council Annual operating fees will stay the same New increased permit applications fees 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 New area source component: Unpermitted area sources subject to an air pollution standard: $250 per year Industry Response *Supportive of increased fee but dont want to pay *OAC 252:100-5-2.3(d) provides for adjustments of fees if alternative funding found *Mobile Source lobby engages

History WASTE TIRE RECYCLING ACT OF 1989 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. Purpose of Act: Establish a program to clean up existing tire dumps and prevent the establishment of new dumps

Nature 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 Proposed State Legislation 2011 HB 1534 and HB 1939 proposed this session Define used tire as opposed to waste tire Proposed fee adjustment to help with costs associated with legacy tire dumps

A used tire is not discarded if collected in accordance with the Act STATUS UPDATE: PASSED THE HOUSE COMMITTEE 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 mobile sources of emissions area 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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