HSB 219 (LSB 2577YC (1) 86)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS)

A BILL FOR

An Act relating to air quality, by providing for the establishment, assessment, and collection of fees, establishing a fund, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 455B.133, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.  Establish air quality fees and administer the air quality fund as provided in section 455B.133C.
    Sec. 2.  NEW SECTION.  455B.133C  Air quality fees and air quality fund —— appropriations.
   1.  As used in this section, “federal Clean Air Act” means the federal Clean Air Act, codified in 42 U.S.C. §7401, et seq., as amended by the federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549, including those amendments effective on January 1, 1991, regulations promulgated by the United States environmental protection agency pursuant to that Act, the provisions of this chapter, and rules adopted by the commission pursuant to this chapter. 
   2.  The commission shall adopt by rule a process for establishing air quality fees which shall be imposed and collected by the department. The fees shall be credited to an air quality fund which is created in the state treasury under the management and control of the department. The fund may include any other moneys appropriated by the general assembly or otherwise available to and obtained or accepted by the department for deposit in the fund.
   3.  The moneys in the fund are appropriated to the department and shall be used exclusively to carry out the provisions of this section pursuant to rules adopted by the commission, and shall not require further special authorization by the general assembly. The fund shall be composed of a major source account, a minor source account, and an asbestos account as created in this section.
   4.  a.  The major source account shall include all fees collected by the department for accepting applications for construction permits submitted by major sources as defined in section 502 of the federal Clean Air Act, 42 U.S.C. §7661, under new source review programs pursuant to the federal Clean Air Act, including as provided under 567 IAC chs. 22, 31, and 33.
   b.  Moneys in the account are appropriated to the department to pay for direct and indirect costs necessary or practical to implement new source review programs as described in paragraph “a”, including costs associated with a new, modified, or existing major source and related control equipment.
   5.  a.  The minor source account shall include all fees collected by the department for accepting applications submitted by minor air contaminant sources for construction permits or for providing for registrations, permits by rule, or template permits in lieu of obtaining construction permits, under minor source new source review programs pursuant to the federal Clean Air Act, including as provided under 567 IAC ch. 22.
   b.  Moneys in the account are appropriated to the department to pay for direct and indirect costs necessary or practical to implement minor source new source review programs as described in paragraph “a”, including costs associated with a new, modified, or existing minor air contaminant source, and related control equipment.
   6.  a.  The asbestos account shall include all fees collected by the department for accepting notifications involving demolition or renovation projects under the asbestos national emission standard for hazardous air pollutants program pursuant to 567 IAC ch. 23.
   b.  Moneys in the account are appropriated to the department to pay for direct and indirect costs required to administer projects involving asbestos as described in paragraph “a”.
   7.  Each fiscal year, the commission shall as necessary adjust the air quality fees to be credited to each account of the air quality fund. The amount of each fee shall be determined after considering the estimated amount required to support each program financed by that account after subtracting the expected unencumbered and unobligated balance in that account at the end of a fiscal year.
   8.  a.  The department shall not transfer moneys credited from one account to another account.
   b.  Notwithstanding section 12C.7, interest or earnings on moneys in each account of the fund shall be credited to the account.
   c.  Notwithstanding section 8.33, moneys credited to the fund that remain unexpended or unobligated at the end of a fiscal year shall not revert to any other fund.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides that the environmental protection commission must adopt rules that establish a process that allows the commission to annually set air quality fees to be imposed and collected by the department of natural resources. The bill creates an air quality fund under the control of the department. The bill divides the fund into three separate accounts, each financed by different air quality fees associated with a federal program under the federal Clean Air Act, with each account to be used to support that federal program. The accounts include: (1) a major source account which must be used to regulate major air contaminant sources under new source review programs, (2) a minor source account which must be used to regulate minor air contaminant sources or for providing alternatives for constructions permits under minor source new source review programs, and (3) an asbestos account which must be used to pay for regulating the asbestos national emission standard for hazardous air pollutants program. The bill requires the commission to as necessary adjust the air quality fees required to be credited to the three accounts before the end of each fiscal year. The department is prohibited from transferring moneys between accounts. The fund retains interest or earnings on moneys in the fund, and moneys credited to the fund do not revert to any other source.