AQD Fee Proposal

Air Quality Advisory Council

February 5, 2008

FY07 Income/Expenses

Title V Fees53.98%

FederalGrants16.85%

State Appropriations

13.05%

Non-Title VFees

16.12%

Non-Title V21%

Title V 79%

FY07 Income FY07 Expenses

FY08 Income/Expenses

FederalGrants 15.94%

State Appropriations

14.20%

Non-Title V Fees

15.28%

Title V Fees54.59%

Non-Title V 20%

Title V 80%

FY08 Income FY08 Expenses*

*Data as of 12/31/07

Projected FY09 Income

UST3.89%

TV Fees55.86%

FederalGrants10.46%

State Appropriations

14.44%

Non-Title V Fees

15.35%

Projected FY09 Expenses

Title V 72%

Non-Title V

28%

FY 09 Projected Income/Expenses

Income/Expenses – Historical(in dollars)

Historical Data (FISCAL YEAR) FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

Non Title V Fee Income (Loss) 321,069 702,153 845,017 614,724 636,621 1,490,701 1,843,941

Title V Income (Loss) -1,176,081 343,500 -705,441 -878,528 -89,676 -889,430 -1,399,828

Percentage Split 33-67 26-74 28-72 22-78 28-72 26-74 21-79

Title V Program

• Stopped paying for itself in 2003• Result of Agency Regulatory Oversight Continuum and

the shift of Division resources to facilities with the greatest risk of causing environmental harm

• Workload increased with additional delegation of NSPS, NESHAPS, 111d plans, increased modeling & monitoring, new national programs, and potential ozone non-attainment

• Resources shifted from minor sources to TV due to– Permit Exempt Rule increased to 40 tons from 5 tons for

emission year 2005– Increased use of General Operating Permits

• TV has been subsidized by increased General Revenue intended for toxics program since FY06

Potential Increase to Minor Source Workload

• New MACT and NSPS requirements for engines regardless of horsepower

• EPA to require public review for minor source permits

• Pressure from EPA to reverse Permit Exempt and again permit sources emitting 5 tons per year or more of a criteria pollutant

• Increased permitting due to Oil & Gas boom• Increased work due to potential ozone non-

attainment

Air Quality Fee History

Fee YearEmission

YearTitle V Fee (in

dollars)

Minor Source Fee (in dollars)

Fee Level (tons)

1994 1993 15.19 15.19 10

1995 1994 15.58 15.58 10

1996 1995 16.03 16.03 10

1997 1996 16.39 16.39 5

1998 1997 17.12 17.12 5

1999 1998 17.51 17.12 5

2000 1999 18.10 17.12 5

2001 2000 18.59 17.12 5

2002 2001 22.28 22.28 5

2003 2002 22.75 22.28 5

2004 2003 23.36 22.28 5

2005 2004 24.20 22.28 40

2006 2005 25.12 22.28 40

2007 2006 32.30* 25.12* 40

*without CPI applied

AQD Full Program Needs

  Total Title V Non-Title V

Fee 7,314,691 5,737,982 1,576,709

UST Fund 400,000 400,000 0

State 1,483,030 0 1,483,030

Federal 1,074,821 0 1,074,821

Total Income 10,272,542 6,137,982 4,134,560

       

Expenses:      

Salaries & Fringes 8,999,192 7,127,167 1,872,025

Other 3,634,467 1,915,382 1,719,085

Total Expenses 12,633,659 9,042,549 3,591,110

       

Net Income (Loss) -2,361,117 -2,904,567 543,450

New Revenue Proposal

• Air Program Shortfall $2,361,117– Less Income from Doubling TV Permit Fees $ 168,150– Less TV CPI Adjustment $

108,647– Less Income from Doubling NTV Permit Fees $ 302,650– Less NTV CPI Adjustment $ 25,160

• Shortfall remaining $1,756,510

• Non Title V Proposed Revenue Remains the Same $ 162,402• Remaining Shortfall

$1,594,108– Divided by 221,729 tons = $7.18 per ton TV pollutant

Proposed Shortfall Income

Non-Title V7.94%

Title V72.12%

Other19.94%

Questions?