Senate Study Bill 1222 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT BILL BY CHAIRPERSON DEARDEN) A BILL FOR An Act relating to air quality, by providing for the 1 establishment, assessment, and collection of fees, 2 establishing a fund, and making appropriations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2231XC (9) 86 da/nh

S.F. _____ Section 1. Section 455B.133, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 11. Establish air quality fees and 3 administer the air quality fund as provided in section 4 455B.133C. 5 Sec. 2. NEW SECTION . 455B.133C Air quality fees and air 6 quality fund —— appropriations. 7 1. As used in this section, “federal Clean Air Act” means 8 the federal Clean Air Act, codified in 42 U.S.C. §7401, et 9 seq., as amended by the federal Clean Air Act Amendments of 10 1990, Pub. L. No. 101-549, including those amendments effective 11 on January 1, 1991, regulations promulgated by the United 12 States environmental protection agency pursuant to that Act, 13 the provisions of this chapter, and rules adopted by the 14 commission pursuant to this chapter. 15 2. The commission shall adopt by rule a process for 16 establishing air quality fees which shall be imposed and 17 collected by the department. The fees shall be credited to an 18 air quality fund which is created in the state treasury under 19 the management and control of the department. The fund may 20 include any other moneys appropriated by the general assembly 21 or otherwise available to and obtained or accepted by the 22 department for deposit in the fund. 23 3. The moneys in the fund are appropriated to the department 24 and shall be used exclusively to carry out the provisions of 25 this section pursuant to rules adopted by the commission, 26 and shall not require further special authorization by the 27 general assembly. The fund shall be composed of a major source 28 account, a minor source account, and an asbestos account as 29 created in this section. 30 4. a. The major source account shall include all fees 31 collected by the department for accepting applications for 32 construction permits submitted by major sources as defined in 33 section 502 of the federal Clean Air Act, 42 U.S.C. §7661, 34 under new source review programs pursuant to the federal Clean 35 -1- LSB 2231XC (9) 86 da/nh 1/ 4

S.F. _____ Air Act, including as provided under 567 IAC chs. 22, 31, and 1 33. 2 b. Moneys in the account are appropriated to the department 3 to pay for direct and indirect costs necessary or practical to 4 implement new source review programs as described in paragraph 5 “a” , including costs associated with a new, modified, or 6 existing major source and related control equipment. 7 5. a. The minor source account shall include all fees 8 collected by the department for accepting applications 9 submitted by minor air contaminant sources for construction 10 permits or for providing for registrations, permits by rule, 11 or template permits in lieu of obtaining construction permits, 12 under minor source new source review programs pursuant to the 13 federal Clean Air Act, including as provided under 567 IAC ch. 14 22. 15 b. Moneys in the account are appropriated to the department 16 to pay for direct and indirect costs necessary or practical to 17 implement minor source new source review programs as described 18 in paragraph “a” , including costs associated with a new, 19 modified, or existing minor air contaminant source, and related 20 control equipment. 21 6. a. The asbestos account shall include all fees collected 22 by the department for accepting notifications involving 23 demolition or renovation projects under the asbestos national 24 emission standard for hazardous air pollutants program pursuant 25 to 567 IAC ch. 23. 26 b. Moneys in the account are appropriated to the department 27 to pay for direct and indirect costs required to administer 28 projects involving asbestos as described in paragraph “a” . 29 7. Each fiscal year, the commission shall as necessary 30 adjust the air quality fees to be credited to each account 31 of the air quality fund. The amount of each fee shall be 32 determined after considering the estimated amount required to 33 support each program financed by that account after subtracting 34 the expected unencumbered and unobligated balance in that 35 -2- LSB 2231XC (9) 86 da/nh 2/ 4

S.F. _____ account at the end of a fiscal year. 1 8. a. The department shall not transfer moneys credited 2 from one account to another account. 3 b. Notwithstanding section 12C.7, interest or earnings on 4 moneys in each account of the fund shall be credited to the 5 account. 6 c. Notwithstanding section 8.33, moneys credited to the fund 7 that remain unexpended or unobligated at the end of a fiscal 8 year shall not revert to any other fund. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill provides that the environmental protection 13 commission must adopt rules that establish a process that 14 allows the commission to annually set air quality fees 15 to be imposed and collected by the department of natural 16 resources. The bill creates an air quality fund under the 17 control of the department. The bill divides the fund into 18 three separate accounts, each financed by different air quality 19 fees associated with a federal program under the federal 20 Clean Air Act, with each account to be used to support that 21 federal program. The accounts include: (1) a major source 22 account which must be used to regulate major air contaminant 23 sources under new source review programs, (2) a minor source 24 account which must be used to regulate minor air contaminant 25 sources or for providing alternatives for constructions permits 26 under minor source new source review programs, and (3) an 27 asbestos account which must be used to pay for regulating 28 the asbestos national emission standard for hazardous air 29 pollutants program. The bill requires the commission to as 30 necessary adjust the air quality fees required to be credited 31 to the three accounts before the end of each fiscal year. The 32 department is prohibited from transferring moneys between 33 accounts. The fund retains interest or earnings on moneys in 34 the fund, and moneys credited to the fund do not revert to any 35 -3- LSB 2231XC (9) 86 da/nh 3/ 4

S.F. _____ other source. 1 -4- LSB 2231XC (9) 86 da/nh 4/ 4