House Study Bill 75 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ENVIRONMENTAL PROTECTION BILL BY CHAIRPERSON OLSON) 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 2175HC (5) 84 tm/nh

H.F. _____ 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) Fees assessed under this subsection shall be sufficient 34 solely to provide for the costs of developing and administering 35 -1- LSB 2175HC (5) 84 tm/nh 1/ 3

H.F. _____ the operating permit program described in this subsection, 1 which costs are limited to all of the following: 2 (a) Reasonable costs of reviewing and acting upon any 3 application for such a permit. 4 (b) Reasonable costs of implementing and enforcing the 5 terms and conditions of any such permit, not including any 6 court costs or other costs associated with any enforcement 7 action. 8 (c) Reasonable costs of emissions and ambient air quality 9 monitoring for any such permit. 10 (d) Reasonable costs of preparing generally applicable 11 regulations or guidance for any such permit. 12 (e) Reasonable costs of ambient air quality modeling, 13 analyses, and demonstrations for any such permit. 14 (f) Reasonable costs of preparing inventories and tracking 15 emissions for any such permit. 16 (3) Fees assessed pursuant to this subsection shall not 17 be used for costs associated with a construction permitting 18 program, including general ambient air quality modeling or 19 monitoring under the program. 20 (4) Fees shall not be assessed for any permitting program 21 under this subsection when the program exceeds in any way the 22 requirements of the federal Clean Air Act Amendments of 1990, 23 Pub. L. No. 101-549. 24 (5) For the fiscal year beginning July 1, 2011, and each 25 fiscal year thereafter, the Tit. V fee required pursuant to the 26 federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549, 27 shall not be more than fifty-six dollars per ton of regulated 28 air pollutant emitted from a major stationary source. Fees 29 shall not be collected for greenhouse gas emissions as defined 30 by the greenhouse gas tailoring rule adopted by the United 31 States environmental protection agency. 32 (6) By November 1 of each year, the department shall submit 33 a report to the general assembly providing information on the 34 human health and welfare benefit gains during the previous 35 -2- LSB 2175HC (5) 84 tm/nh 2/ 3

H.F. _____ fiscal year as a result of the programs supported by Tit. V 1 fees, for each applicable air pollutant. 2 EXPLANATION 3 This bill relates to certain fees assessed for activities 4 regulated under the federal Clean Air Act Amendments of 1990. 5 The bill requires certain fees assessed for regulated 6 activities under the federal Clean Air Act be sufficient 7 solely to provide for specific listed costs of developing and 8 administering the operating permit program. The bill prohibits 9 fees from being used for costs associated with a construction 10 permitting program, including general ambient air quality 11 modeling or monitoring under the program. The bill prohibits 12 fees from being assessed for any permitting program that 13 exceeds in any way the requirements of the federal Clean Air 14 Act Amendments of 1990, Pub. L. No. 101-549. 15 For the fiscal year beginning July 1, 2011, and each fiscal 16 year thereafter, the bill requires the Title V fee required 17 pursuant to the federal Clean Air Act Amendments of 1990, to be 18 not more than $56 per ton of regulated air pollutant emitted 19 from a major stationary source. The bill prohibits fees from 20 being collected for greenhouse gas emissions as defined by the 21 greenhouse gas tailoring rule adopted by the United States 22 environmental protection agency. The bill includes annual 23 reporting requirements for the department of natural resources 24 regarding the human health and welfare benefit gains during the 25 previous fiscal year as a result of the programs supported by 26 Title V fees for each applicable air pollutant. 27 -3- LSB 2175HC (5) 84 tm/nh 3/ 3