House File 402 - Introduced HOUSE FILE 402 BY COMMITTEE ON ENVIRONMENTAL PROTECTION (SUCCESSOR TO HSB 75) A BILL FOR An Act relating to certain fees assessed for activities 1 regulated under the federal Clean Air Act. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2175HV (2) 84 tm/nh

H.F. 402 Section 1. Section 455B.133, subsection 8, paragraph a, 1 Code 2011, is amended to read as follows: 2 a. (1) Adopt rules consistent with the federal Clean Air 3 Act Amendments of 1990, Pub. L. No. 101-549, which require 4 the owner or operator of an air contaminant source to obtain 5 an operating permit prior to operation of the source. The 6 rules shall specify the information required to be submitted 7 with the application for a permit and the conditions under 8 which a permit may be granted, modified, suspended, terminated, 9 revoked, reissued, or denied. For sources subject to the 10 provisions of Tit. IV of the federal Clean Air Act Amendments 11 of 1990, permit conditions shall include emission allowances 12 for sulfur dioxide emissions. The commission may impose 13 fees, including fees upon regulated pollutants emitted from 14 an air contaminant source, in an amount sufficient to solely 15 cover , on an annual basis, all reasonable costs, direct and 16 indirect, required to develop and administer the permit program 17 in conformance with the federal Clean Air Act Amendments of 18 1990, Pub. L. No. 101-549 , as further defined in subparagraph 19 (2) . Affected units regulated under Tit. IV of the federal 20 Clean Air Act Amendments of 1990, Pub. L. No. 101-549, shall 21 pay operating permit fees in the same manner as other sources 22 subject to operating permit requirements, except as provided in 23 section 408 of the federal Act. The fees collected pursuant 24 to this subsection shall be deposited in the air contaminant 25 source fund created pursuant to section 455B.133B , and shall 26 be utilized solely to cover all reasonable costs required to 27 develop and administer the programs required by Tit. V of the 28 federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549, 29 including the permit program pursuant to section 502 of the 30 federal Act and the small business stationary source technical 31 and environmental assistance program pursuant to section 507 32 of the federal Act. 33 (2) Not later than January 1, 2012, fees assessed under this 34 subsection shall be sufficient solely to provide for the costs 35 -1- LSB 2175HV (2) 84 tm/nh 1/ 4

H.F. 402 of developing and administering the operating permit program 1 described in this subsection, which costs are limited to all 2 of the following: 3 (a) Reasonable costs of preparing generally applicable 4 regulations or guidance regarding the permit program or its 5 implementation or enforcement. 6 (b) Reasonable costs of reviewing and acting on any 7 application for a permit, permit revision, or permit renewal, 8 including the development of an applicable requirement as part 9 of the processing of a permit or permit revision or renewal. 10 (c) Reasonable general administrative costs of 11 administering the permit program, including the supporting 12 and tracking of operating permit applications, compliance 13 certification, and related data entry. 14 (d) Reasonable costs of implementing and enforcing the 15 terms of an operating permit, not including any court costs or 16 other costs associated with an enforcement action, including 17 adequate resources to determine which sources are subject to 18 the program. 19 (e) Reasonable costs of emissions and ambient monitoring. 20 (f) Reasonable costs of modeling, analyses, or 21 demonstrations. 22 (g) Reasonable costs of preparing inventories and tracking 23 emissions. 24 (h) Reasonable costs of providing direct and indirect 25 support to sources under the federal Small Business Stationary 26 Source Technical and Environmental Compliance Assistance 27 Program pursuant to section 507 of the federal Clean Air Act. 28 (3) Fees assessed pursuant to this subsection shall not 29 be used for costs associated with a construction permitting 30 program, including general ambient air quality modeling or 31 monitoring under the program. 32 (4) Fees shall not be assessed for any permitting program 33 under this subsection when the program exceeds in any way the 34 requirements of the federal Clean Air Act Amendments of 1990, 35 -2- LSB 2175HV (2) 84 tm/nh 2/ 4

H.F. 402 Pub. L. No. 101-549. 1 (5) For the fiscal year beginning July 1, 2011, and each 2 fiscal year thereafter, the Tit. V fee required pursuant to the 3 federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549, 4 shall not be more than fifty-six dollars per ton of regulated 5 air pollutant emitted from a major stationary source. Fees 6 shall not be collected for greenhouse gas emissions as defined 7 by the greenhouse gas tailoring rule adopted by the United 8 States environmental protection agency. 9 (6) For purposes of this paragraph “a” , “permit” means an 10 operating permit under this subsection. 11 Sec. 2. REPORTING. On the fifteenth day of each month 12 from July 1, 2011, through January 15, 2012, the department 13 of natural resources shall forward a report to each holder 14 of an operating permit issued pursuant to section 455B.133, 15 subsection 8, paragraph “a”. The report shall include a 16 detailed itemization of moneys expended during the previous 17 calendar month on activities related to section 455B.133, 18 subsection 8, paragraph “a”. In addition, the report shall 19 include an itemization of time spent during the previous 20 calendar month by employees on activities related to section 21 455B.133, subsection 8, paragraph “a”. 22 EXPLANATION 23 This bill relates to certain fees assessed for activities 24 regulated under the federal Clean Air Act Amendments of 1990. 25 The bill requires certain fees assessed for regulated 26 activities under the federal Clean Air Act be sufficient 27 solely to provide for specific listed costs of developing and 28 administering the operating permit program. The bill prohibits 29 fees from being used for costs associated with a construction 30 permitting program, including general ambient air quality 31 modeling or monitoring under the program. The bill prohibits 32 fees from being assessed for any permitting program that 33 exceeds in any way the requirements of the federal Clean Air 34 Act Amendments of 1990, Pub. L. No. 101-549. 35 -3- LSB 2175HV (2) 84 tm/nh 3/ 4

H.F. 402 For the fiscal year beginning July 1, 2011, and each fiscal 1 year thereafter, the bill requires the Title V fee required 2 pursuant to the federal Clean Air Act Amendments of 1990, to be 3 not more than $56 per ton of regulated air pollutant emitted 4 from a major stationary source. The bill prohibits fees from 5 being collected for greenhouse gas emissions as defined by the 6 greenhouse gas tailoring rule adopted by the United States 7 environmental protection agency. The bill includes reporting 8 requirements for the department of natural resources. 9 -4- LSB 2175HV (2) 84 tm/nh 4/ 4