HOUSE BILL No. 4792 May 17, 2001, Introduced by Rep. LaSata 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 1998 PA 245. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 5522. (1) For the state fiscal year beginning 2 October 1,19982001, and continuing until September 30,20013 2005, the owner or operator of each fee-subject facility shall 4 pay air quality fees as required and calculated under this 5 section. The department may levy and collect an annual air qual- 6 ity fee from the owner or operator of each fee-subject facility 7 in this state. The legislature intends that the fees required 8 under this section meet the minimum requirements of the clean air 9 act and that this expressly stated fee system serve as a 03073'01 * TMV 2 1 limitation on the amount of fees imposed under this part on the 2 owners or operators of fee-subject facilities in this state. 3 (2) The annual air quality fee shall be calculated for each 4 fee-subject facility, according to the following procedure: 5 (a)ForEXCEPT AS PROVIDED IN SUBDIVISION (D), FOR cate- 6 gory I facilities, the annual air quality fee shall be the sum of 7 a facility charge and an emissions charge as specified in 8 subdivision (e), MULTIPLIED BY THE REVENUE LEVELING FACTOR AS 9 DETERMINED UNDER SUBDIVISION (F). The facility charge shall be 10 $3,375.00. 11 (b) For category II facilities, the annual air quality fee 12 shall be the sum of a facility charge and an emissions charge as 13 specified in subdivision (e), MULTIPLIED BY THE REVENUE LEVELING 14 FACTOR AS DETERMINED UNDER SUBDIVISION (F). The facility charge 15 shall be $1,350.00. 16 (c) For category III facilities, the annual air quality fee 17 shall be$200.00$250.00. 18 (d) For municipal electric generating facilitiessubject to19category I whichTHAT ARE CATEGORY I FACILITIES AND THAT emit 20 less than 18,000 tons, but more than 450 tonsof fee-subject 21 air pollutants, the annual air quality fee shall bean operating22permit facility charge of $18,675.00 only. This annual air qual-23ity fee is based upon the category I facility charges of24$3,375.00 plus an emissions charge equal to the product of 45025tons of fee-subject air pollutants and $34.00 per ton of26fee-subject air pollutantTHE FOLLOWING AMOUNT, BASED ON THE 27 NUMBER OF TONS OF FEE-SUBJECT AIR POLLUTANTS EMITTED, MULTIPLIED 03073'01 * 3 1 BY THE REVENUE LEVELING FACTOR AS DETERMINED UNDER SUBDIVISION 2 (F): 3 (i) LESS THAN 4,000 TONS, $18,675.00. 4 (ii) AT LEAST 4,000 TONS BUT NOT MORE THAN 5,300 TONS, 5 $18,675.00 PLUS $34.00 PER TON OF FEE-SUBJECT AIR POLLUTANT IN 6 EXCESS OF 4,000 TONS. 7 (iii) MORE THAN 5,300 TONS BUT NOT MORE THAN 12,000 TONS, 8 $64,000.00. 9 (iv) MORE THAN 12,000 TONS BUT LESS THAN 18,000 TONS, 10 $120,000.00. 11 (e) The emissions charge for category I and category II 12 facilitiesequalsSHALL EQUAL theproduct ofEMISSION CHARGE 13 RATE OF $34.00, MULTIPLIED BY the actual tons of fee-subject air 14 pollutants emitted.and the emission charge rate.A pollutant 15 that qualifies as a fee-subject air pollutant under more than 1 16 class shall be charged only once.The charge shall be calcu-17lated as follows: (i) The emissions tonnage shall be calculated18for the calendar year 2 years preceding the year of the billing.19 The actual tons of fee-subject air pollutants emitted is 20 CONSIDERED TO BE the sum of all fee-subject air pollutants 21 emitted at the fee-subject facility, except that for the pur-22poses of the emissions charge calculation the actual tons charged23shall not exceed eitherFOR THE CALENDAR YEAR 2 YEARS PRECEDING 24 THE YEAR OF BILLING, BUT NOT MORE THAN THE LESSER of the 25 following: 26 (i)(A)4,000 tons. 03073'01 * 4 1 (ii)(B)1,000 tons per pollutant, if the sum of all 2 fee-subject air pollutants except carbon monoxide emitted at the 3 fee-subject facility is less than 4,000 tons. 4(ii) The emission charge rate shall be $34.00 per ton of5fee-subject air pollutants.6 (F) THE REVENUE LEVELING FACTOR SHALL BE DETERMINED BY 7 DIVIDING $11,225,000.00 BY THE SUM OF THE UNADJUSTED ANNUAL AIR 8 QUALITY FEES UNDER SUBDIVISIONS (A), (B), AND (D). 9 (3) The auditor general shall conduct a biennial audit of 10 the federally mandated operating permit program required in title 11 V. The audit shall include the auditor general's recommendation 12 regarding the sufficiency of the fees required under 13 subsection (2) to meet the minimum requirements of the clean air 14 act. 15 (4) After January 1, but before January 15 of each year 16 beginning in 1995, the department shall notify the owner or oper- 17 ator of each fee-subject facility of its assessed annual air 18 quality fee. Payment is due within 90 calendar days of the mail- 19 ing date of the air quality fee notification. If an assessed fee 20 is challengedas authorized inUNDER subsection (6), payment is 21 due within 90 calendar days of the mailing date of the air qual- 22 ity fee notification or within 30 days of receipt of a revised 23 fee or statement supporting the original fee, whichever is 24 later. The department shall deposit all fees collected under 25 this section to the credit of the fund. 26 (5) If the owner or operator of a fee-subject facility fails 27 to submit the amount due within the time period specified in 03073'01 * 5 1 subsection (4), the department shall assess the owner or operator 2 a penalty of 5% of the amount of the unpaid fee for each month 3 that the payment is overdue up to a maximum penalty of 25% of the 4 total fee owed. 5 (6) If the owner or operator of a fee-subject facility 6 desires to challenge its assessed fee, the owner or operator 7 shall submit the challenge in writing to the department. The 8 department shall not process the challenge unless it is received 9 by the department within 45 calendar days of the mailing date of 10 the air quality fee notification described in subsection (4). A 11 challenge shall identify the facility and state the grounds upon 12 which the challenge is based. Within 30 calendar days of receipt 13 of the challenge, the department shall determine the validity of 14 the challenge and provide the owner with notification of a 15 revised fee or a statement setting forth the reason or reasons 16 why the fee was not revised. Payment of the challenged or 17 revised fee is due within the time frame described in 18 subsection (4). If the owner or operator of a facility desires 19 to further challenge its assessed fee, the owner or operator of 20 the facility has an opportunity for a contested case hearing as 21 provided for under the administrative procedures act of 1969, 22 1969 PA 306, MCL 24.201 to 24.328. 23 (7) If requested by the department, by March 15 of each 24 year,beginning in 1995,or within 45 days of a request by the 25 department, whichever is later, the owner or operator of each 26 fee-subject facility shall submit information regarding the 27 facility's previous year's emissions to the department. The 03073'01 * 6 1 information shall be sufficient for the department to calculate 2 the facility's emissions for that year and meet the requirements 3 of subpart Q of 40 C.F.R. part 51. 4 (8) By July 1 of each year,beginning in 1995,the depart- 5 ment shall provide the owner or operator of each fee-subject 6 facility required to pay an emission charge pursuant to this sec- 7 tion with a copy of the department's calculation of the facility 8 emissions for the previous year. Within 60 days of this notifi- 9 cation, the owner or operator of the facility may provide correc- 10 tions to the department. The department shall make a final 11 determination of the emissions by December 15 of that year. If 12 the owner or operator disagrees with the determination of the 13 department, the owner or operator may request a contested case 14 hearing as provided for under the administrative procedures act 15 of 1969, 1969 PA 306, MCL 24.201 to 24.328. 16 (9)TheBY MARCH 1 ANNUALLY, THE department shall prepare 17 and submit to the governor,andthe legislature,by March 1 an18annualTHE CHAIR OF THE STANDING COMMITTEE OF THE SENATE AND 19 HOUSE OF REPRESENTATIVES WITH PRIMARY RESPONSIBILITY FOR ENVIRON- 20 MENTAL PROTECTION ISSUES RELATED TO AIR QUALITY, AND THE CHAIRS 21 OF THE SUBCOMMITTEES OF THE SENATE AND HOUSE APPROPRIATIONS COM- 22 MITTEES WITH PRIMARY RESPONSIBILITY FOR APPROPRIATIONS TO THE 23 DEPARTMENT A report that details the activities of the previous 24 fiscal year funded by the fund for the department. This report 25 shall include, at a minimum, all of the following as it relates 26 to the department: 03073'01 * 7 1 (a) The number of full-time equated positions performing 2 TITLE V AND NON-TITLE V air quality enforcement, compliance, or 3 permitting activities.and the number of hours worked on title V4activities in relation to hours worked on other matters.5 (b) All of the following information related to the permit 6 to install program authorized under section 5505: 7 (i) The number of permit to install applications received by 8 the department. 9 (ii) The number of permit to install applications for which 10 a final action was taken by the department. The number of final 11 actions should be reported as the number of applications 12 approved, the number of applications denied, and the number of 13 applications withdrawn by the applicant. 14 (iii) The number of permits to install approved that were 15 required to complete public participation under section 5511(3) 16 before final action and the number of permits to install approved 17 that were not required to complete public participation under 18 section 5511(3) prior to final action. 19 (iv) The average number of final permit actions per permit 20 to install reviewer full-timeequivalentsEQUIVALENT POSITION. 21 (v) The percentage and number of permit to install applica- 22 tions which were reviewed for administrative completeness within 23 10 days of receipt by the department. 24 (vi) The percentage and number of permit to install applica- 25 tions which were reviewed for technical completeness within 30 26 days of receipt of an administratively complete application by 27 the department. 03073'01 * 8 1 (vii) The percentage and number of permit to install 2 applications submitted to the department that were administra- 3 tively complete as received. 4 (viii) The percentage and number of permit to install appli- 5 cations for which a final action was taken by the department 6 within 60 days of receipt of a technically complete application 7 for those not required to complete public participation under 8 section 5511(3) prior to final action, or within 120 days of 9 receipt of a technically complete application for those which are 10 required to complete public participation under section 5511(3) 11 prior to final action. 12 (c) All of the following information for the renewable oper- 13 ating permit program authorized under section 5506: 14 (i) The number of renewable operating permit applications 15 received by the department. 16 (ii) The number of renewable operating permit applications 17 for which a final action was taken by the department. The number 18 of final actions should be reported as the number of applications 19 approved, the number of applications denied, and the number of 20 applications withdrawn by the applicant. 21 (iii) The percentage and number of permit applications ini- 22 tially processed within the required time. 23 (iv) The percentage and number of permit renewals and modi- 24 fications processed within the required time. 25 (v) The number of permit applications reopened by the 26 department. 03073'01 * 9 1 (vi) The number of general permits issued by the 2 department. 3 (d) The number of letters of violation sent. 4 (e) The amount of penalties collected from all consent 5 orders and judgments. 6 (f) For each enforcement action that includes payment of a 7 penalty, a description of what corrective actions were required 8 by the enforcement action. 9 (g) The number of inspections done on sources required to 10 obtain a permit under section 5506 and the number of inspections 11 of other sources. 12 (h) The number of air pollution complaints received, inves- 13 tigated, not resolved, and resolved by the department. 14 (i) The number of contested case hearings and civil actions 15 initiated and completed, and the number of voluntary consent 16 orders, administrative penalty orders, and emergency orders 17 entered or issued, for sources required to obtain a permit under 18 section 5506. 19 (J) THE AMOUNT OF REVENUE IN THE FUND AT THE END OF THE 20 FISCAL YEAR. 21 (10)By August 1, 1999, the department shall convene a task22force made up of representatives of fee-subject facilities, envi-23ronmental groups, the general public, and any state department to24which funds are appropriated from the fund. Not later than25August 1, 2000, the task force shall provide to the legislature a26final report on the adequacy of the fee revenues, the fee27structure relative to all sectors of the regulated industry, and03073'01 * 10 1the appropriateness of program activities and shall recommend2changes to this section, as appropriate, to match fee revenues to3program costs.THE REPORT UNDER SUBSECTION (9) SHALL ALSO 4 INCLUDE THE AMOUNT OF REVENUE FOR PROGRAMS UNDER THIS PART 5 RECEIVED DURING THE PRIOR FISCAL YEAR FROM FEES, FROM FEDERAL 6 FUNDS, AND FROM GENERAL FUND APPROPRIATIONS. EACH OF THESE 7 AMOUNTS SHALL BE EXPRESSED AS A DOLLAR AMOUNT AND AS A PERCENT OF 8 THE TOTAL ANNUAL COST OF PROGRAMS UNDER THIS PART. 9 (11) The attorney general may bring an action for the col- 10 lection of the fees imposed under this section. 11 (12) THIS SECTION DOES NOT APPLY IF THE ADMINISTRATOR OF THE 12 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY DETERMINES THAT THE 13 DEPARTMENT IS NOT ADEQUATELY ADMINISTERING OR ENFORCING THE 14 RENEWABLE OPERATING PERMIT PROGRAM AND THE ADMINISTRATOR PROMUL- 15 GATES AND ADMINISTERS A RENEWABLE OPERATING PERMIT PROGRAM FOR 16 THIS STATE. 03073'01 * Final page. TMV