Senate Bill 1554

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    Florida Senate - 1998                                  SB 1554

    By Senator Williams





    4-1080A-98

  1                      A bill to be entitled

  2         An act relating to air pollution control

  3         revenues; amending s. 215.22, F.S.; exempting

  4         the Air Pollution Control Trust Fund from a

  5         surcharge; amending s. 403.0872, F.S.;

  6         providing for adjustments in the major

  7         stationary source annual air-operation permit

  8         license fees; changing the date for an audit of

  9         the major stationary source air-operation

10         permit program; providing an effective date.

11

12  Be It Enacted by the Legislature of the State of Florida:

13

14         Section 1.  Paragraph (t) is added to subsection (1) of

15  section 215.22, Florida Statutes, to read:

16         215.22  Certain income and certain trust funds

17  exempt.--

18         (1)  The following income of a revenue nature or the

19  following trust funds shall be exempt from the deduction

20  required by s. 215.20(1):

21         (t)  The Air Pollution Control Trust Fund.

22         Section 2.  Subsection (11) of section 403.0872,

23  Florida Statutes, is amended to read:

24         403.0872  Operation permits for major sources of air

25  pollution; annual operation license fee.--Provided that

26  program approval pursuant to 42 U.S.C. s. 7661a has been

27  received from the United States Environmental Protection

28  Agency, beginning January 2, 1995, each major source of air

29  pollution, including electrical power plants certified under

30  s. 403.511, must obtain from the department an operation

31  permit for a major source of air pollution under this section,

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    Florida Senate - 1998                                  SB 1554
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  1  which is the only department operation permit for a major

  2  source of air pollution required for such source. Operation

  3  permits for major sources of air pollution, except general

  4  permits issued pursuant to s. 403.814, must be issued in

  5  accordance with the following procedures and in accordance

  6  with chapter 120; however, to the extent that chapter 120 is

  7  inconsistent with the provisions of this section, the

  8  procedures contained in this section prevail:

  9         (11)  Commencing in 1993, each major source of air

10  pollution permitted to operate in this state must pay between

11  January 15 and March 1 of each year, upon written notice from

12  the department, an annual operation license fee in an amount

13  determined by department rule. The annual operation license

14  fee shall be terminated immediately in the event the United

15  States Environmental Protection Agency imposes annual fees

16  solely to implement and administer the major source

17  air-operation permit program in Florida under 40 C.F.R. s.

18  70.10(d).

19         (a)  The annual fee must be assessed based upon the

20  source's previous year's emissions and must be calculated by

21  multiplying the applicable annual operation license fee factor

22  times the tons of each regulated air pollutant (except carbon

23  monoxide) allowed to be emitted per hour by specific condition

24  of the source's most recent construction or operation permit,

25  times the annual hours of operation allowed by permit

26  condition; provided, however, that:

27         1.  For 1993 and 1994, the license fee factor is $10.

28  For 1995, the license fee factor is $25. In succeeding years,

29  The license fee factor is $25 or another amount determined by

30  department rule which ensures that the revenue provided by

31  each year's operation license fees is sufficient to cover all

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    Florida Senate - 1998                                  SB 1554
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  1  reasonable direct and indirect costs of the major stationary

  2  source air-operation permit program established by this

  3  section. The license fee factor may be adjusted by rule only

  4  after an audit required under paragraph (c), and increased

  5  beyond $25 only if the secretary of the department

  6  affirmatively finds that a shortage or surplus of revenue for

  7  support of the major stationary source air-operation permit

  8  program will occur in the absence of a fee factor adjustment.

  9  Only expenditures made or funded by the department which meet

10  the requirements under subparagraph (a)10. and paragraph (b)

11  may be used in calculating whether there is a shortage of

12  revenue. The annual operation license fees collected by the

13  department must be used solely to cover the costs of meeting

14  the functions of the permitting program as described in

15  subparagraph (a)10. and paragraph (b). The annual license fee

16  factor may never exceed $35. The department shall retain a

17  nationally recognized accounting firm to conduct a study to

18  determine the reasonable revenue requirements necessary to

19  support the development and administration of the major source

20  air-operation permit program as prescribed in paragraph (b).

21  The results of that determination must be considered in

22  assessing whether a $25-per-ton fee factor is sufficient to

23  adequately fund the major source air-operation permit program.

24  The results of the study must be presented to the Governor,

25  the President of the Senate, the Speaker of the House of

26  Representatives, and the Public Service Commission, including

27  the Public Counsel's Office, by no later than October 31,

28  1994.

29         2.  For any source that operates for fewer hours during

30  the calendar year than allowed under its permit, the annual

31  fee calculation must be based upon actual hours of operation

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    Florida Senate - 1998                                  SB 1554
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  1  rather than allowable hours if the owner or operator of the

  2  source documents the source's actual hours of operation for

  3  the calendar year. For any source that has an emissions limit

  4  that is dependent upon the type of fuel burned, the annual fee

  5  calculation must be based on the emissions limit applicable

  6  during actual hours of operation.

  7         3.  For any source whose allowable emission limitation

  8  is specified by permit per units of material input or heat

  9  input or product output, the applicable input or production

10  amount may be used to calculate the allowable emissions if the

11  owner or operator of the source documents the actual input or

12  production amount. If the input or production amount is not

13  documented, the maximum allowable input or production amount

14  specified in the permit must be used to calculate the

15  allowable emissions.

16         4.  For any new source that does not receive its first

17  operation permit until after the beginning of a calendar year,

18  the annual fee for the year must be reduced pro rata to

19  reflect the period during which the source was not allowed to

20  operate.

21         5.  For any source that emits less of any regulated air

22  pollutant than allowed by permit condition, the annual fee

23  calculation for such pollutant must be based upon actual

24  emissions rather than allowable emissions if the owner or

25  operator documents the source's actual emissions by means of

26  data from a department-approved certified continuous emissions

27  monitor or from an emissions monitoring method which has been

28  approved by the United States Environmental Protection Agency

29  under the regulations implementing 42 U.S.C. ss. 7651 et seq.,

30  or from a method approved by the department for purposes of

31  this section.

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  1         6.  The amount of each regulated air pollutant in

  2  excess of 4,000 tons per year allowed to be emitted by any

  3  source, or group of sources belonging to the same Major Group

  4  as described in the Standard Industrial Classification Manual,

  5  1987, may not be included in the calculation of the fee. Any

  6  source, or group of sources, which does not emit any regulated

  7  air pollutant in excess of 4,000 tons per year, is allowed a

  8  one-time credit not to exceed 25 percent of the first annual

  9  licensing fee for the prorated portion of existing

10  air-operation permit application fees remaining upon

11  commencement of the annual licensing fees.

12         7.  If the department has not received the fee by

13  February 15 of the calendar year, the permittee must be sent a

14  written warning of the consequences for failing to pay the fee

15  by March 1. If the fee is not postmarked by March 1 of the

16  calendar year, commencing with calendar year 1997, the

17  department shall impose, in addition to the fee, a penalty of

18  50 percent of the amount of the fee, plus interest on such

19  amount computed in accordance with s. 220.807. The department

20  may not impose such penalty or interest on any amount

21  underpaid, provided that the permittee has timely remitted

22  payment of at least 90 percent of the amount determined to be

23  due and remits full payment within 60 days after receipt of

24  notice of the amount underpaid.  The department may waive the

25  collection of underpayment and shall not be required to refund

26  overpayment of the fee, if the amount due is less than 1

27  percent of the fee, up to $50. The department may revoke any

28  major air pollution source operation permit if it finds that

29  the permitholder has failed to timely pay any required annual

30  operation license fee, penalty, or interest.

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    Florida Senate - 1998                                  SB 1554
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  1         8.  During the years 1993 through 1999, inclusive, no

  2  fee shall be required to be paid under this section with

  3  respect to emissions from any unit which is an affected unit

  4  under 42 U.S.C. s. 7651c.

  5         9.  Notwithstanding the computational provisions of

  6  this subsection, the annual operation license fee for any

  7  source subject to this section shall not be less than $250,

  8  except that the annual operation license fee for sources

  9  permitted solely through general permits issued under s.

10  403.814 shall not exceed $50 per year.

11         10.  Notwithstanding the provisions of s.

12  403.087(6)(a)4.a., authorizing air pollution construction

13  permit fees, the department may not require such fees for

14  changes or additions to a major source of air pollution

15  permitted pursuant to this section, unless the activity

16  triggers permitting requirements under Title I, Part C or Part

17  D, of the federal Clean Air Act, 42 U.S.C. ss. 7470-7514a.

18  Costs to issue and administer such permits shall be considered

19  direct and indirect costs of the major stationary source

20  air-operation permit program under s. 403.0873. The department

21  shall, however, require fees pursuant to the provisions of s.

22  403.087(6)(a)4.a. for the construction of a new major source

23  of air pollution that will be subject to the permitting

24  requirements of this section once constructed and for

25  activities triggering permitting requirements under Title I,

26  Part C or Part D, of the federal Clean Air Act, 42 U.S.C. ss.

27  7470-7514a.

28         (b)  Annual operation license fees collected by the

29  department must be sufficient to cover all reasonable direct

30  and indirect costs required to develop and administer the

31  major stationary source air-operation permit program, which

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  1  shall consist of the following elements to the extent that

  2  they are reasonably related to the implementation of the

  3  regulation of major stationary source air-operation permit

  4  program pollution sources, in accordance with United States

  5  Environmental Protection Agency regulations and guidelines:

  6         1.  Reviewing and acting upon any application for such

  7  a permit.

  8         2.  Implementing and enforcing the terms and conditions

  9  of any such permit, excluding court costs or other costs

10  associated with any enforcement action.

11         3.  Emissions and Ambient air monitoring only to the

12  extent that site-specific monitoring is necessary for the

13  issuance of a major stationary source air permit or permits,

14  as documented in the permit or permits.

15         4.  Preparing generally applicable regulations or

16  guidance only to the extent required for the implementation of

17  the major stationary source air-operation permit program.

18         5.  Modeling, analyses, and demonstrations only to the

19  extent required for the implementation of the major stationary

20  source air-operation permit program.

21         6.  Preparing inventories and tracking emissions only

22  to the extent required for the implementation of the major

23  stationary source air-operation permit program.

24         7.  Implementing the Small Business Stationary Source

25  Technical and Environmental Compliance Assistance Program.

26         8.  The study conducted under subparagraph (a)1. and

27  Any audits conducted under paragraph (c).

28         9.  Site-specific emissions monitoring in conjunction

29  with an applicable requirement of a major stationary source.

30         (c)  An audit of the major stationary source

31  air-operation permit program must not be commenced until

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  1  January 1, 2002, and must be completed by January 1, 2003,

  2  conducted 2 years after the United States Environmental

  3  Protection Agency has given full approval of the program, or

  4  by the end of 1996, whichever comes later, to ascertain

  5  whether the annual operation license fees collected by the

  6  department are sufficient and are used by the department and

  7  local programs solely to cover the support any reasonable

  8  direct and indirect costs as listed in subparagraph (a)10. and

  9  paragraph (b). In addition, the audit must evaluate the

10  department's system for measuring program performance,

11  efficiency, and accountability. A program audit must be

12  performed every 5 years biennially after the first audit.

13         Section 3.  This act shall take effect July 1, 1998.

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16                          SENATE SUMMARY

17    Exempts the Air Pollution Control Trust Fund from the 7
      percent General Revenue Fund surcharge. Clarifies the
18    license fee criteria and changes the date for an audit of
      the major stationary source air-operation permit program.
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