Senate File 488 S-3115 Amend Senate File 488 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 455B.133, subsection 8, 4 paragraph a, Code 2015, is amended to read as follows: 5 a. (1) Adopt rules consistent with the federal 6 Clean Air Act Amendments of 1990, Pub. L. No. 101-549, 7 including those amendments effective on January 1, 8 1991, regulations promulgated by the United States 9 environmental protection agency pursuant to that Act, 10 the provisions of this chapter, and rules adopted by 11 the commission pursuant to this chapter, which require 12 the owner or operator of an air contaminant source 13 to obtain an operating permit prior to operation of 14 the source. The rules shall specify the information 15 required to be submitted with the application for a 16 an operating permit and the conditions under which a 17 permit may be granted, modified, suspended, terminated, 18 revoked, reissued, or denied. For sources subject to 19 the provisions of Tit. IV of the federal Clean Air 20 Act Amendments of 1990, operating permit conditions 21 shall include emission allowances for sulfur dioxide 22 emissions. 23 (2) (a) The commission may impose establish 24 fees to be imposed and collected by the department , 25 including operating permit application fees and 26 fees upon regulated pollutants emitted from an air 27 contaminant source, in an amount sufficient to cover , 28 on a state fiscal year basis as described in section 29 455B.133B, all reasonable costs, direct and indirect, 30 required to develop implement and administer the 31 operating permit program as described in subparagraph 32 (1) in conformance with the federal Clean Air Act 33 Amendments of 1990 , Pub. L. No. 101-549 . Affected 34 units regulated under Tit. IV of the federal Clean Air 35 Act Amendments of 1990 , Pub. L. No. 101-549, shall 36 pay operating permit fees in the same manner as other 37 sources subject to operating permit requirements, 38 except as provided in section 408 of the federal that 39 Act. 40 (b) The fees collected by the department pursuant 41 to this subsection subparagraph division (a) shall 42 be deposited in credited to the appropriate accounts 43 of the air contaminant source fund created pursuant 44 to section 455B.133B , and shall be utilized solely 45 to cover all reasonable costs required to develop 46 implement and administer the programs required by Tit. 47 V of the federal Clean Air Act Amendments of 1990, Pub. 48 L. No. 101-549 , including the operating permit program 49 pursuant to section 502 of the federal that Act and 50 -1- SF488.1389 (4) 86 da/nh 1/ 9 #1.

the small business stationary source technical and 1 environmental assistance program pursuant to section 2 507 of the federal that Act. The amount of the fees 3 credited to and expended from each account of the 4 air contaminant source fund shall be subject to the 5 limitations provided in section 455B.133B. 6 (c) Fees established pursuant to this subparagraph 7 (2) shall not be imposed for the regulation of an 8 activity that exceeds the requirements of the federal 9 Clean Air Act Amendments of 1990. 10 Sec. 2. Section 455B.133B, Code 2015, is amended to 11 read as follows: 12 455B.133B Air contaminant source fund created —— 13 fees and appropriations . 14 1. As used in this section, unless the context 15 otherwise requires: 16 a. “Federal Clean Air Act Amendments of 1990” 17 means Pub. L. No. 101-549, including those amendments 18 effective on January 1, 1991, regulations promulgated 19 by the United States environmental protection agency 20 pursuant to that Act, the provisions of this chapter, 21 and rules adopted by the commission pursuant to this 22 chapter. 23 b. “State fiscal year” means the fiscal year 24 described in section 3.12. 25 2. An air contaminant source fund is created in 26 the office of the treasurer of state under the control 27 of the department. The fund shall be composed of 28 an air emission fee account and an operating permit 29 application fee account as provided in this section. 30 1. Moneys received from the fees assessed pursuant 31 to section 455B.133, subsection 8 , shall be deposited 32 in the fund. 33 2. Moneys in the fund shall be used solely to 34 defray the costs related to the permit, monitoring, 35 and inspection program, including the small business 36 stationary source technical and environmental 37 compliance assistance program required pursuant to 38 the federal Clean Air Act Amendments of 1990, section 39 502, Pub. L. No. 101-549, and as provided in section 40 455B.133A . 41 3. In establishing fees to be imposed and collected 42 by the department pursuant to section 455B.133, 43 subsection 8, the commission shall use the calculated 44 estimate described in this section. The fees collected 45 pursuant to section 455B.133, subsection 8, shall 46 be credited to the fund. The fund may include any 47 other moneys appropriated by the general assembly or 48 otherwise available to and obtained or accepted by the 49 department for deposit in the fund. 50 -2- SF488.1389 (4) 86 da/nh 2/ 9

4. a. The commission shall establish each fee 1 amount based on the department’s calculated estimate of 2 total revenues from all fees predicted to be credited 3 to each account in the fund, but not to exceed a 4 ceiling amount for each account as provided in this 5 section. However, this subsection does not require 6 that an account have a zero ending balance at the close 7 of a state fiscal year. 8 b. Each state fiscal year the department shall 9 recompute its calculated estimate and obtain approval 10 from the commission if an established fee amount must 11 be adjusted. 12 c. (1) The department shall annually convene a 13 Title V fees stakeholder meeting. The department 14 shall provide a report on the fees and budgets to 15 the stakeholders. The department shall consider any 16 recommendations of the stakeholders when computing its 17 calculated estimate for the following state fiscal 18 year. 19 (2) A person invited to attend a stakeholder 20 meeting is not entitled to receive a per diem as 21 specified in section 7E.6 and shall be not reimbursed 22 for expenses incurred while attending the meeting. 23 5. a. The air emission fee account shall include 24 all fees established by the commission to be imposed 25 and collected by the department for emission fees for 26 regulated pollutants submitted by major sources as 27 defined in section 502 of the federal Clean Air Act 28 Amendments of 1990, 42 U.S.C. §7661, and as defined in 29 567 IAC ch. 22. 30 b. (1) The department’s calculated estimate 31 for the air emission fee account shall be computed 32 to produce total revenues sufficient to pay for 33 reasonable direct and indirect costs of implementing 34 and administering the operating permit program as 35 provided in section 455B.133, subsection 8, on a state 36 fiscal year basis. 37 (2) The reasonable direct and indirect costs 38 described in subparagraph (1) shall be limited to all 39 of the following: 40 (a) General administrative costs of administering 41 the operating permit program, including the supporting 42 and tracking of operating permit applications, 43 compliance certification, and related data entry. 44 (b) Costs of implementing and enforcing the terms 45 of an operating permit, not including any court costs 46 or other costs associated with an enforcement action, 47 including adequate resources to determine which sources 48 are subject to the program. 49 (c) Costs of emissions and ambient site-specific 50 -3- SF488.1389 (4) 86 da/nh 3/ 9

monitors. 1 (d) Costs of Title V source-specific modeling, 2 analyses, or demonstrations. 3 (e) Costs of preparing inventories and tracking 4 emissions. 5 (f) Costs of providing direct support to sources 6 under the small business stationary source technical 7 and environmental compliance assistance program as 8 provided in section 455B.133A. 9 (3) The department shall not include in its 10 computations for a calculated estimate, and the 11 commission shall not establish fees, for greenhouse gas 12 emissions as defined in 40 C.F.R. §70.12. 13 c. The department’s calculated estimate for the air 14 emission fee account shall not produce total revenues 15 in excess of eight million two hundred fifty thousand 16 dollars during any state fiscal year. 17 d. (1) Moneys in the air emission fee account 18 are appropriated to the department to pay for the 19 reasonable direct and indirect costs specified in 20 paragraph “b” , subparagraph (2). 21 (2) Notwithstanding subparagraph (1), moneys in 22 the air emission fee account are also appropriated 23 to the department to pay for costs associated with 24 implementing and administering regulatory activities, 25 including programs, provided for in division II of 26 this chapter, other than costs covered by any of the 27 following: 28 (a) Operating permit application fees credited 29 to the operating permit application fee account as 30 provided in subsection 6. 31 (b) New source review application fees credited to 32 the major source account of the air quality fund as 33 provided in section 455B.133C, subsection 5. 34 (c) New source review application fees credited to 35 the minor source account of the air quality fund as 36 provided in section 455B.133C, subsection 6. 37 (d) Notification fees credited to the asbestos 38 account of the air quality fund as provided in section 39 455B.133C, subsection 7. 40 6. a. The operating permit application fee account 41 shall include all fees established by the commission 42 to be imposed and collected by the department for 43 accepting applications for operating permits submitted 44 by major sources as defined in section 502 of the 45 federal Clean Air Act Amendments of 1990, 42 U.S.C. 46 §7661, and as defined in 567 IAC ch. 22. 47 b. (1) The department’s calculated estimate for 48 the operating permit application fee account shall 49 be computed to produce total revenues sufficient to 50 -4- SF488.1389 (4) 86 da/nh 4/ 9

provide for the reasonable direct and indirect costs 1 of implementing and administering operating permit 2 programs described in paragraph “a” . 3 (2) The reasonable direct and indirect costs 4 described in subparagraph (1) shall be limited to all 5 of the following: 6 (a) Costs of reviewing and acting on any 7 application for an operating permit or operating permit 8 revision. 9 (b) General administrative costs of administering 10 the operating permit program, including the supporting 11 and tracking of operating permit applications and 12 related data entry. 13 c. The department’s calculated estimate for the 14 operating permit application fee account shall not 15 produce total revenues in excess of one million two 16 hundred fifty thousand dollars during any state fiscal 17 year. 18 d. Moneys in the operating permit application fee 19 account are appropriated to the department to pay for 20 reasonable direct and indirect costs specified in 21 paragraph “b” , subparagraph (2). 22 7. a. The commission or department shall not 23 transfer moneys credited from one account to another 24 account of the fund. 25 b. Notwithstanding section 8.33 , any unexpended 26 balance in the an account of the fund at the end of 27 each state fiscal year shall be retained in the fund 28 that account . 29 c. Notwithstanding section 12C.7 , any interest and 30 earnings on investments from money moneys in the fund 31 an account of the fund shall be credited to the fund 32 that account . 33 Sec. 3. NEW SECTION . 455B.133C Air quality fund 34 —— fees and appropriations. 35 1. As used in this section, unless the context 36 otherwise requires: 37 a. “Federal Clean Air Act Amendments of 1990” means 38 the same as defined in section 455B.133B. 39 b. “State fiscal year” means the fiscal year 40 described in section 3.12. 41 2. An air quality fund is created in the office 42 of the treasurer of state under the control of the 43 department. The fund shall be composed of a major 44 source account, a minor source account, and an asbestos 45 account as provided in this section. 46 3. The commission may establish fees to be imposed 47 and collected by the department upon air contaminant 48 sources required by 567 IAC ch. 22, 31, or 33, to 49 obtain a permit, registration, template, or permit by 50 -5- SF488.1389 (4) 86 da/nh 5/ 9

rule, or to provide notification under 567 IAC 23.1(3). 1 In establishing the fees, the commission shall use the 2 calculated estimate described in this section. The 3 fees collected shall be credited to the fund. The 4 fund may include any other moneys appropriated by the 5 general assembly or otherwise available to and obtained 6 or accepted by the department for deposit in the fund. 7 4. a. The commission shall establish each fee 8 amount based on the department’s calculated estimate of 9 total revenues from all fees predicted to be credited 10 to each account in the fund, but not to exceed a 11 ceiling amount for each account as provided in this 12 section. However, this subsection does not require 13 that an account have a zero ending balance at the close 14 of a state fiscal year. 15 b. Each state fiscal year the department shall 16 recompute its calculated estimate and obtain approval 17 from the commission if an established fee amount must 18 be adjusted. 19 c. (1) The department shall annually convene air 20 quality fees stakeholder meetings. The department 21 shall provide a report on the fees and budgets to 22 the stakeholders regarding each account described 23 in this section. The department shall consider any 24 recommendations of the stakeholders when computing its 25 calculated estimate for the following state fiscal 26 year. 27 (2) A person invited to attend a stakeholder 28 meeting is not entitled to receive a per diem as 29 specified in section 7E.6 and shall be not reimbursed 30 for expenses incurred while attending the meeting. 31 5. a. The major source account shall include all 32 fees established by the commission to be imposed and 33 collected by the department for accepting applications 34 for new source review permits including permit 35 revisions submitted by major sources as defined in 36 section 502 of the federal Clean Air Act Amendments of 37 1990, 42 U.S.C. §7661, under new source review programs 38 pursuant to that federal Act, including as provided 39 under 567 IAC ch. 22, 31, and 33. 40 b. (1) The department’s calculated estimate for 41 the major source account shall be computed to produce 42 total revenues sufficient to pay for reasonable direct 43 and indirect costs of implementing and administering 44 new source review programs described in paragraph “a” 45 on a state fiscal year basis. 46 (2) The reasonable direct and indirect costs 47 described in subparagraph (1) shall be limited to all 48 of the following: 49 (a) Reviewing and acting on any application for a 50 -6- SF488.1389 (4) 86 da/nh 6/ 9

new source review permit, including the determination 1 of all applicable requirements and dispersion modeling 2 as part of the processing of a permit or permit 3 revision, or an applicability determination. 4 (b) General administrative costs of administering 5 new source review programs including supporting and 6 tracking of any application for a new source review 7 permit and related data entry. 8 (c) (i) Developing and implementing an expedited 9 new source review permit application process. 10 (ii) Additional fees associated with subparagraph 11 subdivision (i). 12 c. (1) The department’s calculated estimate for 13 the major source account shall not produce total 14 revenues in excess of one million five hundred thousand 15 dollars during any state fiscal year. 16 (2) Notwithstanding subparagraph (1), the 17 department’s calculated estimate for the major source 18 account shall not include the additional fees described 19 in paragraph “b” , subparagraph (2), subparagraph 20 division (c), subparagraph subdivision (ii). 21 d. Moneys in the major source account are 22 appropriated to the department to pay for reasonable 23 direct and indirect costs of implementing and 24 administering new source review programs as specified 25 in paragraph “b” , subparagraph (2). 26 6. a. The minor source account shall include 27 all fees established by the commission to be imposed 28 and collected by the department for accepting 29 applications submitted by minor air contaminant 30 sources for construction permits or for providing for 31 registrations, permits by rule, or template permits in 32 lieu of obtaining construction permits, under minor 33 source new source review programs pursuant to the 34 federal Clean Air Act Amendments of 1990, including as 35 provided under 567 IAC ch. 22. 36 b. (1) The department’s calculated estimate for 37 the minor source account shall be computed to produce 38 total revenues sufficient to pay for reasonable direct 39 and indirect costs of implementing and administering 40 minor source new source review programs as described in 41 paragraph “a” on a state fiscal year basis. 42 (2) The reasonable direct and indirect costs 43 described in subparagraph (1) shall include costs 44 associated with a new, modified, or existing minor air 45 contaminant source, and related control equipment. 46 c. The department’s calculated estimate for the 47 minor source account shall not produce total revenues 48 in excess of two hundred fifty thousand dollars during 49 any state fiscal year. 50 -7- SF488.1389 (4) 86 da/nh 7/ 9

d. Moneys in the minor source account are 1 appropriated to the department to pay for reasonable 2 direct and indirect costs of implementing and 3 administering minor source new source review programs 4 as specified in paragraph “b” . 5 7. a. The asbestos account shall include all 6 fees established by the commission to be imposed and 7 collected by the department for accepting notifications 8 involving demolition or renovation projects under the 9 asbestos national emission standard for hazardous air 10 pollutants program pursuant to 567 IAC ch. 23. 11 b. The department’s calculated estimate for the 12 asbestos account shall be computed to produce total 13 revenues sufficient to pay for reasonable direct and 14 indirect costs of implementing and administering the 15 asbestos national emission standard for hazardous air 16 pollutants program as provided in paragraph “a” on a 17 state fiscal year basis. 18 c. The department’s calculated estimate for the 19 asbestos account shall not produce total revenues in 20 excess of four hundred fifty thousand dollars during 21 any state fiscal year. 22 d. Moneys in the asbestos account are appropriated 23 to the department to pay for reasonable direct and 24 indirect costs of implementing and administering the 25 asbestos national emission standard for hazardous air 26 pollutants program as specified in paragraph “b” . 27 8. Fees established pursuant to this section shall 28 not be imposed for the regulation of an activity that 29 exceeds the requirements of the federal Clean Air Act 30 Amendments of 1990. 31 9. a. The commission or department shall not 32 transfer moneys credited from one account to another 33 account of the fund. 34 b. Notwithstanding section 8.33, any unexpended 35 balance in an account of the fund at the end of each 36 state fiscal year shall be retained in that account. 37 c. Notwithstanding section 12C.7, any interest and 38 earnings on investments from moneys in an account of 39 the fund shall be credited to that account. 40 Sec. 4. EFFECTIVE DATE OF FEES. Notwithstanding 41 section 455B.133B, as amended in this Act, or section 42 455B.133C, as enacted in this Act, the environmental 43 protection commission may establish a designated fee 44 effective on and after January 1, 2016. A designated 45 fee is limited to a fee required under this Act to be 46 credited to any of the following funds or accounts: 47 1. For the air contaminant source fund, the 48 operating permit application fee account as provided 49 in section 455B.133B, subsection 6, as enacted in this 50 -8- SF488.1389 (4) 86 da/nh 8/ 9

Act. 1 2. For the air quality fund, any of the following: 2 a. The major source account as provided in section 3 455B.133C, subsection 5, as enacted in this Act. 4 b. The minor source account as provided in section 5 455B.133C, subsection 6, as enacted in this Act. 6 c. The asbestos account as provided in section 7 455B.133C, subsection 7, as enacted in this Act. 8 Sec. 5. CONTINUING EFFECTIVENESS OF EXISTING 9 FEES. Any fee established by the environmental 10 protection commission pursuant to section 455B.133, 11 subsection 8, which is in effect immediately prior to 12 the effective date of this Act shall remain in effect 13 and shall be subject to the provisions of this Act. 14 The fee amount for such a fee in effect immediately 15 prior to the effective date of this Act shall remain 16 in effect until such fee amount is adjusted by the 17 commission as provided in this Act. 18 Sec. 6. TRANSFER OF MONEYS. Any moneys remaining 19 in the air contaminant source fund, as created in 20 section 455B.133B, on the effective date of this Act, 21 shall be transferred to the air emission fee account 22 established within the air contaminant source fund as 23 provided in this Act. 24 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being 25 deemed of immediate importance, takes effect upon 26 enactment. > 27 2. Title page, by striking lines 2 and 3 and 28 inserting < establishment, imposition, and collection 29 of fees, the creation or administration of funds 30 and programs, making appropriations, and including 31 effective date provisions. > 32 3. By renumbering, redesignating, and correcting 33 internal references as necessary. 34 ______________________________ JOE BOLKCOM -9- SF488.1389 (4) 86 da/nh 9/ 9 #2. #3.