Senate Study Bill 3004 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF NATURAL RESOURCES BILL) A BILL FOR An Act relating to certain conditional permits issued by the 1 department of natural resources relating to air and water 2 quality. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5167DP (4) 85 tm/nh

S.F. _____ H.F. _____ Section 1. Section 455B.105, subsection 11, paragraph a, 1 Code 2014, is amended to read as follows: 2 a. Adopt, by rule, procedures and forms necessary to 3 implement the provisions of this chapter and chapters 459 , 4 459A , and 459B relating to permits , conditional permits, and 5 general permits. The commission may also adopt, by rule, a 6 schedule of fees for permit and conditional permit applications 7 and a schedule of fees which may be periodically assessed 8 for administration of permits and conditional permits . In 9 determining the fee schedules, the commission shall consider: 10 (1) The state’s reasonable cost of reviewing applications, 11 issuing permits and conditional permits , and checking 12 compliance with the terms of the permits. 13 (2) The relative benefits to the applicant and to the 14 public of permit and conditional permit review, issuance, and 15 monitoring compliance. It is the intention of the legislature 16 that permit fees shall not cover any costs connected with 17 correcting violation of the terms of any permit and shall not 18 impose unreasonable costs on any municipality. 19 (3) The typical costs of the particular types of projects 20 or activities for which permits or conditional permits are 21 required, provided that in no circumstances shall fees be in 22 excess of the actual costs to the department. 23 Sec. 2. Section 455B.133, subsection 6, paragraph a, Code 24 2014, is amended to read as follows: 25 a. Require, by rules, notice of the construction of any 26 air contaminant source which may cause or contribute to air 27 pollution, and the submission of plans and specifications to 28 the department, or other information deemed necessary, for the 29 installation of air contaminant sources and related control 30 equipment. The rules shall allow the owner or operator of a 31 major stationary source to elect to obtain a conditional permit 32 in lieu of a construction permit. The rules relating to a 33 conditional permit for an electric power generating facility 34 subject to chapter 476A and other major stationary sources 35 -1- LSB 5167DP (4) 85 tm/nh 1/ 3

S.F. _____ H.F. _____ shall allow the submission of engineering descriptions, flow 1 diagrams and schematics that quantitatively and qualitatively 2 identify emission streams and alternative control equipment 3 that will provide compliance with emission standards. Such 4 rules shall not specify any particular method to be used to 5 reduce undesirable levels of emissions, nor type, design, or 6 method of installation of any equipment to be used to reduce 7 such levels of emissions, nor the type, design, or method of 8 installation or type of construction of any manufacturing 9 processes or kinds of equipment, nor specify the kind or 10 composition of fuels permitted to be sold, stored, or used 11 unless authorized by subsection 4 of this section . 12 Sec. 3. Section 455B.134, subsection 3, unnumbered 13 paragraph 1, Code 2014, is amended to read as follows: 14 Grant, modify, suspend, terminate, revoke, reissue , 15 or deny permits for the construction or operation of new, 16 modified, or existing air contaminant sources and for related 17 control equipment , and conditional permits for electric 18 power generating facilities subject to chapter 476A and other 19 major stationary sources, subject to the rules adopted by the 20 commission. The department shall furnish necessary application 21 forms for such permits. 22 Sec. 4. Section 455B.134, subsection 3, paragraphs a, b, c, 23 and e, Code 2014, are amended to read as follows: 24 a. No air contaminant source shall be installed, altered 25 so that it significantly affects emissions, or placed in use 26 unless a construction or conditional permit has been issued for 27 the source. 28 b. The condition of expected performance shall be reasonably 29 detailed in the construction or conditional permit. 30 c. All applications for permits other than conditional 31 permits for electric generating facilities shall be subject to 32 such notice and public participation as may be provided by rule 33 by the commission. Upon denial or limitation of a permit other 34 than a conditional permit for an electric generating facility , 35 -2- LSB 5167DP (4) 85 tm/nh 2/ 3

S.F. _____ H.F. _____ the applicant shall be notified of such denial and informed of 1 the reason or reasons therefor, and such applicant shall be 2 entitled to a hearing before the commission. 3 e. A regulated air contaminant source for which a 4 construction permit or conditional permit has been issued 5 shall not be operated unless an operating permit also has 6 been issued for the source. However, if the facility was in 7 compliance with permit conditions prior to the requirement for 8 an operating permit and has made timely application for an 9 operating permit, the facility may continue operation until 10 the operating permit is issued or denied. Operating permits 11 shall contain the requisite conditions and compliance schedules 12 to ensure conformance with state and federal requirements 13 including emission allowances for sulfur dioxide emissions 14 for sources subject to Tit. IV of the federal Clean Air Act 15 Amendments of 1990. If construction of a new air contaminant 16 source is proposed, the department may issue an operating 17 permit concurrently with the construction permit, if possible 18 and appropriate. 19 Sec. 5. Section 455B.134, subsection 3, paragraph d, Code 20 2014, is amended by striking the paragraph. 21 Sec. 6. Section 455B.147, subsection 2, Code 2014, is 22 amended by striking the subsection. 23 Sec. 7. Section 455B.173, subsection 3, paragraph a, Code 24 2014, is amended by striking the paragraph. 25 Sec. 8. Section 455B.174, subsection 4, paragraph d, Code 26 2014, is amended by striking the paragraph. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill eliminates the ability of the department of 31 natural resources to issue certain conditional permits 32 related to air and water quality to electric power generating 33 facilities. 34 -3- LSB 5167DP (4) 85 tm/nh 3/ 3