Bill Text: MI SB0446 | 2019-2020 | 100th Legislature | Introduced


Bill Title: Environmental protection; air pollution; air quality fees; extend sunset. Amends sec. 5522 of 1994 PA 451 (MCL 324.5522).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-10-02 - Reassigned To Committee On Appropriations [SB0446 Detail]

Download: Michigan-2019-SB0446-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 446

 

 

August 20, 2019, Introduced by Senator BAYER and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 5522 (MCL 324.5522), as amended by 2015 PA 60.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5522. (1) Until October 1, 2019, 2023, the owner or

 

operator of each fee-subject facility shall pay air quality fees as

 

required and calculated under this section. The department may levy

 

and collect an annual air quality fee from the owner or operator of

 

each fee-subject facility in this state. The legislature intends

 

that the fees required under this section meet the minimum

 

requirements of the clean air act and that this expressly stated

 

fee system serve as a limitation on the amount of fees imposed

 

under this part on the owners or operators of fee-subject

 


facilities in this state.

 

     (2) The annual air quality fee shall be calculated for each

 

fee-subject facility, according to the following procedure:

 

     (a) Except as provided in subdivision (d), for category I

 

facilities, the annual air quality fee shall be the sum of a

 

facility charge of $5,250.00 and an emissions charge as specified

 

in subdivision (e) or (f).

 

     (b) For category II facilities, the annual air quality fee

 

shall be the sum of a facility charge of $1,795.00 and an emissions

 

charge as specified in subdivision (e) or (f).

 

     (c) For category III facilities, the annual air quality fee

 

shall be $250.00.

 

     (d) For municipal electric generating facilities that are

 

category I facilities and that emit more than 730 tons of fee-

 

subject air pollutants, the annual air quality fee shall be the

 

following amount, based on the number of tons of fee-subject air

 

pollutants emitted:

 

     (i) For more than 730 tons but less than 5,000 tons, an annual

 

fee of $41,830.00.

 

     (ii) For 5,000 tons or more, an annual fee equal to the sum of

 

a facility charge of $5,250.00 and an emissions charge as specified

 

in subdivision (e).

 

     (e) The emissions charge for category I facilities that are

 

electric providers and that are not covered by subdivision (d) and

 

for category II facilities that are electric providers shall equal

 

the emission charge rate multiplied by the actual tons of fee-

 

subject air pollutants emitted. The emission charge rate for fee-


subject air pollutants shall be $51.15. A pollutant that qualifies

 

as a fee-subject air pollutant under more than 1 class shall be

 

charged only once. The actual tons of fee-subject air pollutants

 

emitted shall be considered to be the sum of all fee-subject air

 

pollutants emitted at the fee-subject facility for the calendar

 

year 2 years preceding the year of billing, but not more than the

 

lesser of the following:

 

     (i) 6,100 tons.

 

     (ii) 1,500 tons per pollutant, if the sum of all fee-subject

 

air pollutants except carbon monoxide emitted at the fee-subject

 

facility is less than 6,100 tons.

 

     (f) The emissions charge for category I or category II

 

facilities that are not electric providers shall be calculated in

 

the same manner as provided in subdivision (e). However, the actual

 

tons of fee-subject air pollutants emitted shall be considered to

 

be the sum of all fee-subject air pollutants emitted at a fee-

 

subject facility for the calendar year 2 years preceding the year

 

of billing, but not more than the lesser of the following:

 

     (i) 4,500 tons.

 

     (ii) 1,250 tons per pollutant, if the sum of all fee-subject

 

air pollutants except carbon monoxide emitted at the fee-subject

 

facility is less than 4,500 tons.

 

     (3) After January 1, but before January 15 of each year, the

 

department shall notify the owner or operator of each fee-subject

 

facility of its assessed annual air quality fee. Payment is due

 

within 90 calendar days of the mailing date of the air quality fee

 

notification. If an assessed fee is challenged under subsection


(5), payment is due within 90 calendar days of the mailing date of

 

the air quality fee notification or within 30 days of receipt of a

 

revised fee or statement supporting the original fee, whichever is

 

later. However, to combine fee assessments, the department may

 

adjust the billing date and due date under this subsection for

 

category III facilities that are dry cleaning facilities also

 

subject to the licensing or certification requirements of section

 

13305 of the public health code, 1978 PA 368, MCL 333.13305, and

 

section 5i of the fire prevention code, 1941 PA 207, MCL 29.5i. The

 

department shall deposit all fees collected under this section to

 

the credit of the fund.

 

     (4) If the owner or operator of a fee-subject facility fails

 

to submit the amount due within the time period specified in

 

subsection (3), the department shall assess the owner or operator a

 

penalty of 5% of the amount of the unpaid fee for each month that

 

the payment is overdue up to a maximum penalty of 25% of the total

 

fee owed. However, to combine fee assessments, the department may

 

waive the penalty under this subsection for dry cleaning facilities

 

described in subsection (3).

 

     (5) To challenge its assessed fee, the owner or operator of a

 

fee-subject facility shall submit the challenge in writing to the

 

department. The department shall not process the challenge unless

 

it is received by the department within 45 calendar days of the

 

mailing date of the air quality fee notification described in

 

subsection (3). A challenge shall identify the facility and state

 

the grounds upon which the challenge is based. Within 30 calendar

 

days of receipt of the challenge, the department shall determine


the validity of the challenge and provide the owner with

 

notification of a revised fee or a statement setting forth the

 

reason or reasons why the fee was not revised. Payment of the

 

challenged or revised fee is due within the time frame described in

 

subsection (3). If the owner or operator of a facility desires to

 

further challenge its assessed fee, the owner or operator of the

 

facility has an opportunity for a contested case hearing as

 

provided for under the administrative procedures act of 1969, 1969

 

PA 306, MCL 24.201 to 24.328.

 

     (6) If requested by the department, by March 15 of each year,

 

or within 45 days of a request by the department, whichever is

 

later, the owner or operator of each fee-subject facility shall

 

submit information regarding the facility's previous year's

 

emissions to the department. The information shall be sufficient

 

for the department to calculate the facility's emissions for that

 

year and meet the requirements of 40 CFR 51.320 to 51.327.

 

     (7) By July 1 of each year, the department shall provide the

 

owner or operator of each fee-subject facility required to pay an

 

emission charge pursuant to this section with a copy of the

 

department's calculation of the facility emissions for the previous

 

year. Within 60 days of this notification, the owner or operator of

 

the facility may provide corrections to the department. The

 

department shall make a final determination of the emissions by

 

December 15 of that year. If the owner or operator disagrees with

 

the determination of the department, the owner or operator may

 

request a contested case hearing as provided for under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to


24.328.

 

     (8) By March 1 annually, the department shall prepare and

 

submit to the governor, the legislature, the chairpersons of the

 

standing committees of the senate and house of representatives with

 

primary responsibility for environmental protection issues related

 

to air quality, and the chairpersons of the subcommittees of the

 

senate and house appropriations committees with primary

 

responsibility for appropriations to the department a report that

 

details the department's activities of the previous fiscal year

 

funded by the fund. This report shall include, at a minimum, all of

 

the following as it relates to the department:

 

     (a) The number of full-time equated positions performing title

 

V and non-title nontitle V air quality enforcement, compliance, or

 

permitting activities.

 

     (b) All of the following information related to the permit to

 

install program authorized under section 5505:

 

     (i) The number of permit to install applications received by

 

the department.

 

     (ii) The number of permit to install applications for which a

 

final action was taken by the department. The number of final

 

actions shall be reported as the number of applications approved,

 

the number of applications denied, and the number of applications

 

withdrawn by the applicant.

 

     (iii) The number of permits to install approved that were

 

required to complete public participation under section 5511(3)

 

before final action and the number of permits to install approved

 

that were not required to complete public participation under


section 5511(3) prior to final action.

 

     (iv) The average number of final permit actions per permit to

 

install reviewer full-time equivalent position.

 

     (v) The percentage and number of permit to install

 

applications that were reviewed for administrative completeness

 

within 10 days of receipt by the department.

 

     (vi) The percentage and number of permit to install

 

applications submitted to the department that were administratively

 

complete as received.

 

     (vii) The percentage and number of permit to install

 

applications for which a final action was taken by the department

 

within 180 days of receipt for those applications not required to

 

complete public participation under section 5511(3) prior to final

 

action, or within 240 days of receipt for those applications which

 

are required to complete public participation under section 5511(3)

 

prior to final action.

 

     (viii) The percentage and number of permit to install

 

applications for which a processing period extension was requested

 

and granted.

 

     (c) All of the following information for the renewable

 

operating permit program authorized under section 5506:

 

     (i) The number of renewable operating permit applications

 

received by the department.

 

     (ii) The number of renewable operating permit applications for

 

which a final action was taken by the department. The number of

 

final actions shall be reported as the number of applications

 

approved, the number of applications denied, and the number of


applications withdrawn by the applicant.

 

     (iii) The percentage and number of initial permit applications

 

processed within the required time.

 

     (iv) The percentage and number of permit renewals and

 

modifications processed within the required time.

 

     (v) The number of permit applications reopened by the

 

department.

 

     (vi) The number of general permits issued by the department.

 

     (d) The number of letters of violation sent.

 

     (e) The amount of penalties collected from all consent orders

 

and judgments.

 

     (f) For each enforcement action that includes payment of a

 

penalty, a description of what corrective actions were required by

 

the enforcement action.

 

     (g) The number of inspections done on sources required to

 

obtain a permit under section 5506 and the number of inspections of

 

other sources.

 

     (h) The number of air pollution complaints received,

 

investigated, not resolved, and resolved by the department.

 

     (i) The number of contested case hearings and civil actions

 

initiated and completed, and the number of voluntary consent

 

orders, administrative penalty orders, and emergency orders entered

 

or issued, for sources required to obtain a permit under section

 

5506.

 

     (j) The amount of revenue in the fund at the end of the fiscal

 

year.

 

     (9) The report under subsection (8) shall also include the


amount of revenue for programs under this part received during the

 

prior fiscal year from fees, from federal funds, and from general

 

fund appropriations. Each of these amounts shall be expressed as a

 

dollar amount and as a percent of the total annual cost of programs

 

under this part.

 

     (10) The attorney general may bring an action for the

 

collection of the fees imposed under this section.

 

     (11) This section does not apply if the administrator of the

 

United States Environmental Protection Agency determines that the

 

department is not adequately administering or enforcing the

 

renewable operating permit program and the administrator

 

promulgates and administers a renewable operating permit program

 

for this state.

 

     (12) As used in this section, "electric provider" means that

 

term as defined in section 5 of the clean, renewable, and efficient

 

energy act, 2008 PA 295, MCL 460.1005.

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