Bill Text: IA HF640 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to air quality, by providing for the establishment, imposition, and collection of fees, the creation or administration of funds and programs, making appropriations, and including effective date provisions. (Formerly HSB 219)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-04-22 - Withdrawn. H.J. 904. [HF640 Detail]

Download: Iowa-2015-HF640-Introduced.html

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House File 640 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HSB 219)

                                      A BILL FOR

  1 An Act relating to air quality, by providing for the
  2    establishment, imposition, and collection of fees, the
  3    creation or administration of funds and programs, making
  4    appropriations, and including effective date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2577HV (3) 86
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PAG LIN



  1  1    Section 1.  Section 455B.133, subsection 8, paragraph a,
  1  2 Code 2015, is amended to read as follows:
  1  3    a.  (1)  Adopt rules consistent with the federal Clean
  1  4 Air Act Amendments of 1990, Pub. L. No. 101=549, including
  1  5 those amendments effective on January 1, 1991, regulations
  1  6 promulgated by the United States environmental protection
  1  7 agency pursuant to that Act, the provisions of this chapter,
  1  8 and rules adopted by the commission pursuant to this chapter,
  1  9  which require the owner or operator of an air contaminant
  1 10 source to obtain an operating permit prior to operation of the
  1 11 source. The rules shall specify the information required to be
  1 12 submitted with the application for a an operating permit and
  1 13 the conditions under which a permit may be granted, modified,
  1 14 suspended, terminated, revoked, reissued, or denied. For
  1 15 sources subject to the provisions of Tit. IV of the federal
  1 16 Clean Air Act Amendments of 1990, operating permit conditions
  1 17 shall include emission allowances for sulfur dioxide emissions.
  1 18    (2)  (a)  The commission may impose establish fees to be
  1 19 imposed and collected by the department, including operating
  1 20 permit application fees and fees upon regulated pollutants
  1 21 emitted from an air contaminant source, in an amount sufficient
  1 22 to cover, on a state fiscal year basis as described in section
  1 23 455B.133B, all reasonable costs, direct and indirect, required
  1 24 to develop implement and administer the operating permit
  1 25 program as described in subparagraph (1) in conformance with
  1 26 the federal Clean Air Act Amendments of 1990, Pub. L. No.
  1 27 101=549. Affected units regulated under Tit. IV of the federal
  1 28 Clean Air Act Amendments of 1990, Pub. L. No. 101=549, shall
  1 29 pay operating permit fees in the same manner as other sources
  1 30 subject to operating permit requirements, except as provided in
  1 31 section 408 of the federal that Act.
  1 32    (b)  The fees collected by the department pursuant to this
  1 33 subsection subparagraph division (a) shall be deposited in
  1 34  credited to the appropriate accounts of the air contaminant
  1 35 source fund created pursuant to section 455B.133B, and shall
  2  1 be utilized solely to cover all reasonable costs required to
  2  2 develop implement and administer the programs required by Tit.
  2  3 V of the federal Clean Air Act Amendments of 1990, Pub. L.
  2  4 No. 101=549, including the operating permit program pursuant
  2  5 to section 502 of the federal that Act and the small business
  2  6 stationary source technical and environmental assistance
  2  7 program pursuant to section 507 of the federal that Act.  The
  2  8 amount of the fees credited to and expended from each account
  2  9 of the air contaminant source fund shall be subject to the
  2 10 limitations provided in section 455B.133B.
  2 11    (c)  Fees established pursuant to this subparagraph
  2 12 (2) shall not be imposed for the regulation of an activity
  2 13 that exceeds the requirements of the federal Clean Air Act
  2 14 Amendments of 1990.
  2 15    Sec. 2.  Section 455B.133B, Code 2015, is amended to read as
  2 16 follows:
  2 17    455B.133B  Air contaminant source fund created ==== fees and
  2 18 appropriations.
  2 19    1.  As used in this section, unless the context otherwise
  2 20 requires:
  2 21    a.  "Federal Clean Air Act Amendments of 1990" means Pub.
  2 22 L. No. 101=549, including those amendments effective on
  2 23 January 1, 1991, regulations promulgated by the United States
  2 24 environmental protection agency pursuant to that Act, the
  2 25 provisions of this chapter, and rules adopted by the commission
  2 26 pursuant to this chapter.
  2 27    b.  "State fiscal year" means the fiscal year described in
  2 28 section 3.12. 
  2 29    2.  An air contaminant source fund is created in the office
  2 30 of the treasurer of state under the control of the department.
  2 31 The fund shall be composed of an air emission fee account and
  2 32 an operating permit application fee account as provided in this
  2 33 section.
  2 34    1.  Moneys received from the fees assessed pursuant to
  2 35 section 455B.133, subsection 8, shall be deposited in the fund.
  3  1    2.  Moneys in the fund shall be used solely to defray
  3  2 the costs related to the permit, monitoring, and inspection
  3  3 program, including the small business stationary source
  3  4 technical and environmental compliance assistance program
  3  5 required pursuant to the federal Clean Air Act Amendments of
  3  6 1990, section 502, Pub. L. No. 101=549, and as provided in
  3  7 section 455B.133A.
  3  8    3.  In establishing fees to be imposed and collected by the
  3  9 department pursuant to section 455B.133, subsection 8, the
  3 10 commission shall use the calculated estimate described in this
  3 11 section.  The fees collected pursuant to section 455B.133,
  3 12 subsection 8, shall be credited to the fund. The fund may
  3 13 include any other moneys appropriated by the general assembly
  3 14 or otherwise available to and obtained or accepted by the
  3 15 department for deposit in the fund.
  3 16    4.  a.  The commission shall establish each fee amount based
  3 17 on the department's calculated estimate of total revenues from
  3 18 all fees predicted to be credited to each account in the fund,
  3 19 but not to exceed a ceiling amount for each account as provided
  3 20 in this section.  However, this subsection does not require
  3 21 that an account have a zero ending balance at the close of a
  3 22 state fiscal year.
  3 23    b.  Each state fiscal year the department shall recompute its
  3 24 calculated estimate and obtain approval from the commission if
  3 25 an established fee amount must be adjusted.
  3 26    c.  (1)  The department shall annually convene a Title V fees
  3 27 stakeholder meeting.  The department shall provide a report on
  3 28 the fees and budgets to the stakeholders.  The department shall
  3 29 consider any recommendations of the stakeholders when computing
  3 30 its calculated estimate for the following state fiscal year.
  3 31    (2)  A person invited to attend a stakeholder meeting is not
  3 32 entitled to receive a per diem as specified in section 7E.6 and
  3 33 shall be not reimbursed for expenses incurred while attending
  3 34 the meeting.
  3 35    5.  a.  The air emission fee account shall include all fees
  4  1 established by the commission to be imposed and collected by
  4  2 the department for emission fees for regulated pollutants
  4  3 submitted by major sources as defined in section 502 of the
  4  4 federal Clean Air Act Amendments of 1990, 42 U.S.C. {7661, and
  4  5 as defined in 567 IAC ch. 22.
  4  6    b.  (1)  The department's calculated estimate for the
  4  7 air emission fee account shall be computed to produce total
  4  8 revenues sufficient to pay for reasonable direct and indirect
  4  9 costs of implementing and administering the operating permit
  4 10 program as provided in section 455B.133, subsection 8, on a
  4 11 state fiscal year basis.
  4 12    (2)  The reasonable direct and indirect costs described in
  4 13 subparagraph (1) shall be limited to all of the following:
  4 14    (a)  General administrative costs of administering the
  4 15 operating permit program, including the supporting and tracking
  4 16 of operating permit applications, compliance certification, and
  4 17 related data entry.
  4 18    (b)  Costs of implementing and enforcing the terms of an
  4 19 operating permit, not including any court costs or other costs
  4 20 associated with an enforcement action, including adequate
  4 21 resources to determine which sources are subject to the
  4 22 program.
  4 23    (c)  Costs of emissions and ambient site=specific monitors.
  4 24    (d)  Costs of Title V source=specific modeling, analyses, or
  4 25 demonstrations.
  4 26    (e)  Costs of preparing inventories and tracking emissions.
  4 27    (f)  Costs of providing direct support to sources under the
  4 28 small business stationary source technical and environmental
  4 29 compliance assistance program as provided in section 455B.133A.
  4 30    (3)  The department shall not include in its computations for
  4 31 a calculated estimate, and the commission shall not establish
  4 32 fees, for greenhouse gas emissions as defined in 40 C.F.R.
  4 33 {70.12.
  4 34    c.  The department's calculated estimate for the air emission
  4 35 fee account shall not produce total revenues in excess of eight
  5  1 million two hundred fifty thousand dollars during any state
  5  2 fiscal year.
  5  3    d.  (1)  Moneys in the air emission fee account are
  5  4 appropriated to the department to pay for the reasonable direct
  5  5 and indirect costs specified in paragraph "b", subparagraph
  5  6 (2). 
  5  7    (2)  Notwithstanding subparagraph (1), moneys in the air
  5  8 emission fee account are also appropriated to the department to
  5  9 pay for costs associated with implementing and administering
  5 10 regulatory activities, including programs, provided for in
  5 11 division II of this chapter, other than costs covered by any
  5 12 of the following:
  5 13    (a)  Operating permit application fees credited to the
  5 14 operating permit application fee account as provided in
  5 15 subsection 6.
  5 16    (b)  New source review application fees credited to the major
  5 17 source account of the air quality fund as provided in section
  5 18 455B.133C, subsection 5.
  5 19    (c)  New source review application fees credited to the minor
  5 20 source account of the air quality fund as provided in section
  5 21 455B.133C, subsection 6.
  5 22    (d)  Notification fees credited to the asbestos account
  5 23 of the air quality fund as provided in section 455B.133C,
  5 24 subsection 7.
  5 25    6.  a.  The operating permit application fee account shall
  5 26 include all fees established by the commission to be imposed
  5 27 and collected by the department for accepting applications for
  5 28 operating permits submitted by major sources as defined in
  5 29 section 502 of the federal Clean Air Act Amendments of 1990, 42
  5 30 U.S.C. {7661, and as defined in 567 IAC ch. 22.
  5 31    b.  (1)  The department's calculated estimate for the
  5 32 operating permit application fee account shall be computed to
  5 33 produce total revenues sufficient to provide for the reasonable
  5 34 direct and indirect costs of implementing and administering
  5 35 operating permit programs described in paragraph "a".
  6  1    (2)  The reasonable direct and indirect costs described in
  6  2 subparagraph (1) shall be limited to all of the following:
  6  3    (a)  Costs of reviewing and acting on any application for an
  6  4 operating permit or operating permit revision.
  6  5    (b)  General administrative costs of administering the
  6  6 operating permit program, including the supporting and tracking
  6  7 of operating permit applications and related data entry.
  6  8    c.  The department's calculated estimate for the operating
  6  9 permit application fee account shall not produce total revenues
  6 10 in excess of one million two hundred fifty thousand dollars
  6 11 during any state fiscal year.
  6 12    d.  Moneys in the operating permit application fee account
  6 13 are appropriated to the department to pay for reasonable direct
  6 14 and indirect costs specified in paragraph "b", subparagraph
  6 15 (2).
  6 16    7.  a.  The commission or department shall not transfer
  6 17 moneys credited from one account to another account of the
  6 18 fund.
  6 19    b.  Notwithstanding section 8.33, any unexpended balance in
  6 20 the an account of the fund at the end of each state fiscal year
  6 21 shall be retained in the fund that account.
  6 22    c.  Notwithstanding section 12C.7, any interest and earnings
  6 23 on investments from money moneys in the fund an account of the
  6 24 fund shall be credited to the fund that account.
  6 25    Sec. 3.  NEW SECTION.  455B.133C  Air quality fund ==== fees and
  6 26 appropriations.
  6 27    1.  As used in this section, unless the context otherwise
  6 28 requires:
  6 29    a.  "Federal Clean Air Act Amendments of 1990" means the same
  6 30 as defined in section 455B.133B.
  6 31    b.  "State fiscal year" means the fiscal year described in
  6 32 section 3.12.
  6 33    2.  An air quality fund is created in the office of the
  6 34 treasurer of state under the control of the department.  The
  6 35 fund shall be composed of a major source account, a minor
  7  1 source account, and an asbestos account as provided in this
  7  2 section.
  7  3    3.  The commission may establish fees to be imposed and
  7  4 collected by the department upon air contaminant sources
  7  5 required by 567 IAC ch. 22, 31, or 33, to obtain a permit,
  7  6 registration, template, or permit by rule, or to provide
  7  7 notification under 567 IAC 23.1(3).  In establishing the fees,
  7  8 the commission shall use the calculated estimate described in
  7  9 this section. The fees collected shall be credited to the
  7 10 fund. The fund may include any other moneys appropriated by
  7 11 the general assembly or otherwise available to and obtained or
  7 12 accepted by the department for deposit in the fund.
  7 13    4.  a.  The commission shall establish each fee amount based
  7 14 on the department's calculated estimate of total revenues from
  7 15 all fees predicted to be credited to each account in the fund,
  7 16 but not to exceed a ceiling amount for each account as provided
  7 17 in this section.  However, this subsection does not require
  7 18 that an account have a zero ending balance at the close of a
  7 19 state fiscal year.
  7 20    b.  Each state fiscal year the department shall recompute its
  7 21 calculated estimate and obtain approval from the commission if
  7 22 an established fee amount must be adjusted.
  7 23    c.  (1)  The department shall annually convene air quality
  7 24 fees stakeholder meetings. The department shall provide a
  7 25 report on the fees and budgets to the stakeholders regarding
  7 26 each account described in this section.  The department shall
  7 27 consider any recommendations of the stakeholders when computing
  7 28 its calculated estimate for the following state fiscal year.
  7 29    (2)  A person invited to attend a stakeholder meeting is not
  7 30 entitled to receive a per diem as specified in section 7E.6 and
  7 31 shall be not reimbursed for expenses incurred while attending
  7 32 the meeting.
  7 33    5.  a.  The major source account shall include all fees
  7 34 established by the commission to be imposed and collected
  7 35 by the department for accepting applications for new source
  8  1 review permits including permit revisions submitted by major
  8  2 sources as defined in section 502 of the federal Clean Air Act
  8  3 Amendments of 1990, 42 U.S.C. {7661, under new source review
  8  4 programs pursuant to that federal Act, including as provided
  8  5 under 567 IAC ch. 22, 31, and 33.
  8  6    b.  (1)  The department's calculated estimate for the major
  8  7 source account shall be computed to produce total revenues
  8  8 sufficient to pay for reasonable direct and indirect costs
  8  9 of implementing and administering new source review programs
  8 10 described in paragraph "a" on a state fiscal year basis.
  8 11    (2)  The reasonable direct and indirect costs described in
  8 12 subparagraph (1) shall be limited to all of the following:
  8 13    (a)  Reviewing and acting on any application for a new
  8 14 source review permit, including the determination of all
  8 15 applicable requirements and dispersion modeling as part of the
  8 16 processing of a permit or permit revision, or an applicability
  8 17 determination.
  8 18    (b)  General administrative costs of administering new
  8 19 source review programs including supporting and tracking of any
  8 20 application for a new source review permit and related data
  8 21 entry.
  8 22    (c)  (i)  Developing and implementing an expedited new source
  8 23 review permit application process.
  8 24    (ii)  Additional fees associated with subparagraph
  8 25 subdivision (i).
  8 26    c.  (1)  The department's calculated estimate for the major
  8 27 source account shall not produce total revenues in excess of
  8 28 one million five hundred thousand dollars during any state
  8 29 fiscal year.
  8 30    (2)  Notwithstanding subparagraph (1), the department's
  8 31 calculated estimate for the major source account shall not
  8 32 include the additional fees described in paragraph "b",
  8 33 subparagraph (2), subparagraph division (c), subparagraph
  8 34 subdivision (ii).
  8 35    d.  Moneys in the major source account are appropriated to
  9  1 the department to pay for reasonable direct and indirect costs
  9  2 of implementing and administering new source review programs as
  9  3 specified in paragraph "b", subparagraph (2).
  9  4    6.  a.  The minor source account shall include all fees
  9  5 established by the commission to be imposed and collected
  9  6 by the department for accepting applications submitted by
  9  7 minor air contaminant sources for construction permits or for
  9  8 providing for registrations, permits by rule, or template
  9  9 permits in lieu of obtaining construction permits, under minor
  9 10 source new source review programs pursuant to the federal Clean
  9 11 Air Act Amendments of 1990, including as provided under 567 IAC
  9 12 ch. 22.
  9 13    b.  (1)  The department's calculated estimate for the minor
  9 14 source account shall be computed to produce total revenues
  9 15 sufficient to pay for reasonable direct and indirect costs of
  9 16 implementing and administering minor source new source review
  9 17 programs as described in paragraph "a" on a state fiscal year
  9 18 basis.
  9 19    (2)  The reasonable direct and indirect costs described in
  9 20 subparagraph (1) shall include costs associated with a new,
  9 21 modified, or existing minor air contaminant source, and related
  9 22 control equipment.
  9 23    c.  The department's calculated estimate for the minor source
  9 24 account shall not produce total revenues in excess of two
  9 25 hundred fifty thousand dollars during any state fiscal year.
  9 26    d.  Moneys in the minor source account are appropriated
  9 27 to the department to pay for reasonable direct and indirect
  9 28 costs of implementing and administering minor source new source
  9 29 review programs as specified in paragraph "b".
  9 30    7.  a.  The asbestos account shall include all fees
  9 31 established by the commission to be imposed and collected by
  9 32 the department for accepting notifications involving demolition
  9 33 or renovation projects under the asbestos national emission
  9 34 standard for hazardous air pollutants program pursuant to 567
  9 35 IAC ch. 23.
 10  1    b.  The department's calculated estimate for the asbestos
 10  2 account shall be computed to produce total revenues sufficient
 10  3 to pay for reasonable direct and indirect costs of implementing
 10  4 and administering the asbestos national emission standard for
 10  5 hazardous air pollutants program as provided in paragraph "a"
 10  6 on a state fiscal year basis.
 10  7    c.  The department's calculated estimate for the asbestos
 10  8 account shall not produce total revenues in excess of four
 10  9 hundred fifty thousand dollars during any state fiscal year.
 10 10    d.  Moneys in the asbestos account are appropriated to the
 10 11 department to pay for reasonable direct and indirect costs of
 10 12 implementing and administering the asbestos national emission
 10 13 standard for hazardous air pollutants program as specified in
 10 14 paragraph "b".
 10 15    8.  Fees established pursuant to this section shall not be
 10 16 imposed for the regulation of an activity that exceeds the
 10 17 requirements of the federal Clean Air Act Amendments of 1990.
 10 18    9.  a.  The commission or department shall not transfer
 10 19 moneys credited from one account to another account of the
 10 20 fund.
 10 21    b.  Notwithstanding section 8.33, any unexpended balance in
 10 22 an account of the fund at the end of each state fiscal year
 10 23 shall be retained in that account.
 10 24    c.  Notwithstanding section 12C.7, any interest and earnings
 10 25 on investments from moneys in an account of the fund shall be
 10 26 credited to that account.
 10 27    Sec. 4.  EFFECTIVE DATE OF FEES.  Notwithstanding section
 10 28 455B.133B, as amended in this Act, or section 455B.133C, as
 10 29 enacted in this Act, the environmental protection commission
 10 30 may establish a designated fee effective on and after January
 10 31 1, 2016. A designated fee is limited to a fee required under
 10 32 this Act to be credited to any of the following funds or
 10 33 accounts:
 10 34    1.  For the air contaminant source fund, the operating permit
 10 35 application fee account as provided in section 455B.133B,
 11  1 subsection 6, as enacted in this Act.
 11  2    2.  For the air quality fund, any of the following:
 11  3    a.  The major source account as provided in section
 11  4 455B.133C, subsection 5, as enacted in this Act.
 11  5    b.  The minor source account as provided in section
 11  6 455B.133C, subsection 6, as enacted in this Act.
 11  7    c.  The asbestos account as provided in section 455B.133C,
 11  8 subsection 7, as enacted in this Act.
 11  9    Sec. 5.  CONTINUING EFFECTIVENESS OF EXISTING FEES.  Any
 11 10 fee established by the environmental protection commission
 11 11 pursuant to section 455B.133, subsection 8, which is in effect
 11 12 immediately prior to the effective date of this Act shall
 11 13 remain in effect and shall be subject to the provisions of this
 11 14 Act.  The fee amount for such a fee in effect immediately prior
 11 15 to the effective date of this Act shall remain in effect until
 11 16 such fee amount is adjusted by the commission as provided in
 11 17 this Act.
 11 18    Sec. 6.  TRANSFER OF MONEYS.  Any moneys remaining in the
 11 19 air contaminant source fund, as created in section 455B.133B,
 11 20 on the effective date of this Act, shall be transferred to the
 11 21 air emission fee account established within the air contaminant
 11 22 source fund as provided in this Act.
 11 23    Sec. 7.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
 11 24 immediate importance, takes effect upon enactment.
 11 25                           EXPLANATION
 11 26 The inclusion of this explanation does not constitute agreement with
 11 27 the explanation's substance by the members of the general assembly.
 11 28    This bill provides for fees established by the environmental
 11 29 protection commission (commission) and imposed and collected by
 11 30 the department of natural resources (DNR) under division II of
 11 31 Code chapter 455B, relating to regulations on air quality and
 11 32 closely associated with the federal Clean Air Act. The bill
 11 33 relates to the current fee imposed upon regulated pollutants
 11 34 (Code section 455B.133(8)), including under the operating
 11 35 permit program.  It also provides for the establishment of
 12  1 a new operating permit application fee.  Both of these fees
 12  2 are to be credited to newly created accounts within the
 12  3 existing air contaminant source fund created in Code section
 12  4 455B.133B, the air emission fee account and the operating
 12  5 permit application fee account.
 12  6    In addition, the bill provides for three other new fees: for
 12  7 accepting applications for new source review permits submitted
 12  8 by major sources;  accepting applications submitted by minor air
 12  9 contaminant sources for construction permits or for providing
 12 10 for registrations, permits by rule, or template permits in
 12 11 lieu of obtaining construction permits under minor source
 12 12 new source review programs; and for accepting notifications
 12 13 involving demolition or renovation projects associated with
 12 14 asbestos.  These new fees are to be credited to each of three
 12 15 corresponding accounts established within a new air quality
 12 16 fund, including the major source account, the minor source
 12 17 account, and the asbestos account.
 12 18    The bill provides that if the commission establishes a fee,
 12 19 it must also establish a fee amount based on DNR's calculated
 12 20 estimate of total revenues from the fee predicted to be
 12 21 credited to the corresponding account sufficient to provide for
 12 22 the reasonable direct and indirect costs of implementing and
 12 23 administering regulations associated with that fee during the
 12 24 state fiscal year, but not to exceed a ceiling amount.  DNR
 12 25 must recompute its calculated estimate prior to each state
 12 26 fiscal year (July 1 through June 30) and obtain approval
 12 27 from the commission if an established fee amount must be
 12 28 adjusted for the next state fiscal year.  In addition, DNR must
 12 29 annually convene stakeholder meetings at which invitees make
 12 30 recommendations regarding the DNR's required annual computation
 12 31 of a fee amount to be credited to each account.  Moneys in each
 12 32 account are appropriated to DNR to provide for the reasonable
 12 33 direct and indirect costs of implementing and administering
 12 34 regulations associated with that account.
 12 35    The bill prohibits fees from being imposed for the
 13  1 regulation of an activity that exceeds the requirements of
 13  2 the federal Clean Air Act.  It also prohibits the transfer of
 13  3 moneys between accounts within the same fund, requires that the
 13  4 unexpended balance in an account of the fund at the end of each
 13  5 state fiscal year be retained in that account, and requires
 13  6 that any interest and earnings on investments from moneys in an
 13  7 account of the fund shall be credited to that account.
 13  8    The bill allows the commission to establish fees to be
 13  9 credited to the new accounts of the two funds on or after
 13 10 January 1, 2016.  It also provides that any current fees in
 13 11 effect immediately prior to the bill's effective date are to
 13 12 remain in effect until adjusted by the commission.  Finally,
 13 13 moneys remaining in the air contaminant source fund on the
 13 14 effective date of the bill are to be transferred to the fund's
 13 15 air emission fee account.
 13 16    The bill takes effect upon enactment.
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