The Cost of Clean AirFEES REVISED: 2011

NACAA Membership MeetingNACAA Membership MeetingCleveland, OHCleveland, OHOctober 5, 2011October 5, 2011

Budgetary Realities:•Legislative appropriations are Legislative appropriations are

downdown

•Costs of employee benefits are upCosts of employee benefits are up

•Total annual operating fees are Total annual operating fees are downdown

•Division work load is up & keeps Division work load is up & keeps going upgoing up

Budgetary Realities:

• Legislative appropriations are down: Legislative appropriations are down: $1.23 million$1.23 million

• Benefits & costs of retention are up: Benefits & costs of retention are up: 0.86 million0.86 million

• Total annual operating fees are down: Total annual operating fees are down: 0.86 million 0.86 million

• Budgetary shortfall $2.95 Budgetary shortfall $2.95 millionmillion

October Fee ProposalOctober 2010 Council

• Criteria pollutant feesCriteria pollutant fees remained the sameremained the same

• New hazardous air pollutant fee: New hazardous air pollutant fee: Increased fee per ton emissions on HAPs Increased fee per ton emissions on HAPs Increased fee per pound emissions for Increased fee per pound emissions for mercury & leadmercury & lead

• New area source component: New area source component: Unpermitted area sources subject to an air Unpermitted area sources subject to an air pollution standard: $250 per yearpollution standard: $250 per year

• New mobile source component: New mobile source component: Unpermitted gasoline dispensing facilities Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year subject to CCCCCC: $250-$500-$750 per year based on monthly throughput. based on monthly throughput. Unpermitted gasoline bulk Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per yearterminals subject to BBBBBB: $500 per year

October Fee ProposalOctober 2010 Council: Estimated Funding Totals

• HAPs/Hg/Pb Fees $ HAPs/Hg/Pb Fees $ 646,310646,310

• Area Sources Area Sources 718,750718,750

• Gas Stations Gas Stations 1,500,0001,500,000

• Gas Distribution Facilities Gas Distribution Facilities 115,000115,000

• Total Total $ $ 2,980,0602,980,060

Revised Fee ProposalJanuary 2011 Council

• Annual operating feesAnnual operating fees will stay the samewill stay the same

• New increased permit applications feesNew increased permit applications fees

• New area source component: New area source component:

• Unpermitted area sources subject to an air pollution Unpermitted area sources subject to an air pollution standard: $250 per yearstandard: $250 per year

• New mobile source component: New mobile source component: Unpermitted gasoline dispensing facilities subject to Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year based on monthly CCCCCC: $250-$500-$750 per year based on monthly throughput. Unpermitted gasoline bulk terminals throughput. Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per yearsubject to BBBBBB: $500 per year

Revised Estimated Funding January 2011 Council

• Permit Application Fees $ 784,700Permit Application Fees $ 784,700

• Area Sources 718,750Area Sources 718,750

• Gas Stations 1,500,000Gas Stations 1,500,000

• Gas Distribution Facilities 115,000Gas Distribution Facilities 115,000

• Total $ 3,118,450Total $ 3,118,450

SPECIFICSJanuary 2011 Council

• Add a new section to Subchapter 5 Add a new section to Subchapter 5 OAC 252:100-5-2.3 that addresses area sources OAC 252:100-5-2.3 that addresses area sources

• Modify Subchapter 7, OAC 252:100-7 Part 2 Modify Subchapter 7, OAC 252:100-7 Part 2 to increase minor source permit application fees to increase minor source permit application fees

• Modify Subchapter 8, OAC 252:100-9 Part 3 Modify Subchapter 8, OAC 252:100-9 Part 3 to increase major source permit application fees to increase major source permit application fees

• Include a provision for fee adjustment in Subchapter Include a provision for fee adjustment in Subchapter 5 OAC 252: 100-5-2.3(d)5 OAC 252: 100-5-2.3(d)

SPECIFICS

Area & Mobile Source Components January 2011 Council

• Unpermitted gasoline dispensing facilities:Unpermitted gasoline dispensing facilities:

• throughout less than 10,000: $250throughout less than 10,000: $250

• throughput 10,000 to 100,000: $500throughput 10,000 to 100,000: $500

• throughput 100,000 or more: $750throughput 100,000 or more: $750

• Unpermitted gasoline distribution facilities bulk terminals Unpermitted gasoline distribution facilities bulk terminals & plants & pipeline facilities: $500 & plants & pipeline facilities: $500

• Unpermitted area sources subject to 40 CFR Part 63.2: $250Unpermitted area sources subject to 40 CFR Part 63.2: $250

• Provisions for fee adjustment (in OAC 252:100-5-2.3(d)) Provisions for fee adjustment (in OAC 252:100-5-2.3(d)) discount fees if other revenues become available discount fees if other revenues become available

Add OAC 252:100-5-2.3. Annual operating fees for area sources of air pollution

SPECIFICS

Permit Application Fees January 2011 Council

• Applicability determination: $250 to $500Applicability determination: $250 to $500

• Construction permit application fees:Construction permit application fees:

• Permit by rule remains $250Permit by rule remains $250

• General permit or notice of intent goes from $400 to $500General permit or notice of intent goes from $400 to $500

• Individual permit goes from a range of $1000 - $1500 to Individual permit goes from a range of $1000 - $1500 to $2000$2000

• Amendments of individual permits remain at $500Amendments of individual permits remain at $500

• Operating permit application fees:Operating permit application fees:

• Permit by rule registration stays at $100Permit by rule registration stays at $100

• General permit authorization goes from $150 to $500General permit authorization goes from $150 to $500

• Individual permit goes from $500 to $750Individual permit goes from $500 to $750

• Modification of individual permit from $200 to $750Modification of individual permit from $200 to $750

• Relocation permit $100 to $250Relocation permit $100 to $250

Modify OAC 252:100-7-3. Permit application fees

SPECIFICS

Permit Application Fees January 2011 Council

• Applicability determination: $250 to $500Applicability determination: $250 to $500

• Construction permit application:Construction permit application:

• New Part 70 permit source goes from $2000 to $7500New Part 70 permit source goes from $2000 to $7500

• Modification of a Part 70 source goes from $1500 to $5000Modification of a Part 70 source goes from $1500 to $5000

• Authorization under a general permit stays at $900Authorization under a general permit stays at $900

• Operating permit application:Operating permit application:

• Initial Part 70 permit goes from $2000 to $7500Initial Part 70 permit goes from $2000 to $7500

• Authorization under a general permit stays at $900Authorization under a general permit stays at $900

• Renewal Part 70 permit goes from $1000 to $7500Renewal Part 70 permit goes from $1000 to $7500

• Significant modification of Part 70 permit goes from $1000 to Significant modification of Part 70 permit goes from $1000 to $6000*$6000*

• Minor modification of a Part 70 permit goes from $500 to Minor modification of a Part 70 permit goes from $500 to $3000*$3000*

• Part 70 temporary source relocation remains at $500Part 70 temporary source relocation remains at $500

Modify OAC 252:100-8-1.7. Permit application fees

* new rates amended since rules were published to the web site

• Annual operating feesAnnual operating fees will stay the samewill stay the same

• New increased permit applications feesNew increased permit applications fees

• New area source component: New area source component: Unpermitted area sources subject to an air pollution Unpermitted area sources subject to an air pollution standard: $250 per yearstandard: $250 per year

• New mobile source component: New mobile source component: Unpermitted gasoline dispensing facilities subject to Unpermitted gasoline dispensing facilities subject to CCCCCC: $250-$500-$750 per year based on monthly CCCCCC: $250-$500-$750 per year based on monthly throughput. Unpermitted gasoline bulk terminals throughput. Unpermitted gasoline bulk terminals subject to BBBBBB: $500 per yearsubject to BBBBBB: $500 per year

SPECIFICS

Revised Fee ProposalJanuary 2011 Council

Industry Response

• *Supportive of increased fee but don’t want to *Supportive of increased fee but don’t want to paypay

• *OAC 252:100-5-2.3(d) provides for *OAC 252:100-5-2.3(d) provides for adjustments of fees if alternative funding adjustments of fees if alternative funding foundfound

• *Mobile Source lobby engages*Mobile Source lobby engages

WASTE TIRE RECYCLING ACT OF 1989

HistoryHistory

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’ Affected municipal solid waste landfills’ ability to take tires because it interfered ability to take tires because it interfered with their ability to meet new federal and with their ability to meet new federal and state requirements for daily cover. 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: Nature of Act: From the beginning, an incentive program funded by a fee From the beginning, an incentive program funded by a fee on tires sold for the transportation and proper end use of on tires sold for the transportation and proper end use of waste tireswaste tires

Proposed State Legislation 2011

• HB 1534 and HB 1939 proposed this sessionHB 1534 and HB 1939 proposed this session

• Proposed fee adjustment to help with costs Proposed fee adjustment to help with costs associated with legacy tire dumps associated with legacy tire dumps

• Define “used” tire as opposed to “waste” tireDefine “used” tire as opposed to “waste” tire

• A “used” tire is not discarded if collected in A “used” tire is not discarded if collected in accordance with the Act accordance with the Act

STATUS UPDATE: PASSED THE HOUSE COMMITTEE

New State Legislation New State Legislation

• HB 1939 HB 1939

• Increases tire fee to $2.50 (tires ≤ 19.5 in)Increases tire fee to $2.50 (tires ≤ 19.5 in)

• Allows for incentive to clean up tire dumpsAllows for incentive to clean up tire dumps

• Allows for percentage of fund to be used for area Allows for percentage of fund to be used for area mobile sources of emissionsmobile sources of emissions

Air Quality Mobile Source Fee

• *28% of $2.50 Tire Fee or $0.70 per tire*28% of $2.50 Tire Fee or $0.70 per tire

• *Expected to generate between $250,000 and *Expected to generate between $250,000 and $300,000 per month$300,000 per month

• * August receipt $219,282* August receipt $219,282

• *Fee case passed and signed by Governor as *Fee case passed and signed by Governor as wellwell

• * May leave permit fee increase in place to * May leave permit fee increase in place to make up for mobile source shortfall make up for mobile source shortfall