Senate Bill 1554c1

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    Florida Senate - 1998                           CS for SB 1554

    By the Committee on Natural Resources and Senators Williams
    and Kirkpatrick




    312-1869-98

  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; deleting obsolete provisions

  9         relating to a study that was conducted;

10         changing the date for an audit of the major

11         stationary source air-operation permit program;

12         providing an effective date.

13

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

15

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

17  section 215.22, Florida Statutes, to read:

18         215.22  Certain income and certain trust funds

19  exempt.--

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

21  following trust funds shall be exempt from the deduction

22  required by s. 215.20(1):

23         (t)  The Air Pollution Control Trust Fund.

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

25  Florida Statutes, is amended to read:

26         403.0872  Operation permits for major sources of air

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

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

29  received from the United States Environmental Protection

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

31  pollution, including electrical power plants certified under

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




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

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

  3  which is the only department operation permit for a major

  4  source of air pollution required for such source. Operation

  5  permits for major sources of air pollution, except general

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

  7  accordance with the following procedures and in accordance

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

  9  inconsistent with the provisions of this section, the

10  procedures contained in this section prevail:

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

12  pollution permitted to operate in this state must pay between

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

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

15  determined by department rule. The annual operation license

16  fee shall be terminated immediately in the event the United

17  States Environmental Protection Agency imposes annual fees

18  solely to implement and administer the major source

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

20  70.10(d).

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

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

23  multiplying the applicable annual operation license fee factor

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

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

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

27  times the annual hours of operation allowed by permit

28  condition; provided, however, that:

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

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

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

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




  1  department rule which ensures that the revenue provided by

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

  3  reasonable direct and indirect costs of the major stationary

  4  source air-operation permit program established by this

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

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

  7  beyond $25 only if the secretary of the department

  8  affirmatively finds that a shortage or surplus of revenue for

  9  support of the major stationary source air-operation permit

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

11  Only expenditures made or funded by the department which meet

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

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

14  revenue. The annual operation license fees collected by the

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

16  the functions of the permitting program as described in

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

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

19  nationally recognized accounting firm to conduct a study to

20  determine the reasonable revenue requirements necessary to

21  support the development and administration of the major source

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

23  The results of that determination must be considered in

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

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

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

27  the President of the Senate, the Speaker of the House of

28  Representatives, and the Public Service Commission, including

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

30  1994.

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




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

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

  3  fee calculation must be based upon actual hours of operation

  4  rather than allowable hours if the owner or operator of the

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

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

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

  8  calculation must be based on the emissions limit applicable

  9  during actual hours of operation.

10         3.  For any source whose allowable emission limitation

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

12  input or product output, the applicable input or production

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

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

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

16  documented, the maximum allowable input or production amount

17  specified in the permit must be used to calculate the

18  allowable emissions.

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

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

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

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

23  operate.

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

25  pollutant than allowed by permit condition, the annual fee

26  calculation for such pollutant must be based upon actual

27  emissions rather than allowable emissions if the owner or

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

29  data from a department-approved certified continuous emissions

30  monitor or from an emissions monitoring method which has been

31  approved by the United States Environmental Protection Agency

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




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

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

  3  this section.

  4         6.  The amount of each regulated air pollutant in

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

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

  7  as described in the Standard Industrial Classification Manual,

  8  1987, may not be included in the calculation of the fee. Any

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

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

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

12  licensing fee for the prorated portion of existing

13  air-operation permit application fees remaining upon

14  commencement of the annual licensing fees.

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

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

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

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

19  calendar year, commencing with calendar year 1997, the

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

21  50 percent of the amount of the fee, plus interest on such

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

23  may not impose such penalty or interest on any amount

24  underpaid, provided that the permittee has timely remitted

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

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

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

28  collection of underpayment and shall not be required to refund

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

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

31  major air pollution source operation permit if it finds that

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




  1  the permitholder has failed to timely pay any required annual

  2  operation license fee, penalty, or interest.

  3         8.  During the years 1993 through 1999, inclusive, no

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

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

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

  7         9.  Notwithstanding the computational provisions of

  8  this subsection, the annual operation license fee for any

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

10  except that the annual operation license fee for sources

11  permitted solely through general permits issued under s.

12  403.814 shall not exceed $50 per year.

13         10.  Notwithstanding the provisions of s.

14  403.087(6)(a)4.a., authorizing air pollution construction

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

16  changes or additions to a major source of air pollution

17  permitted pursuant to this section, unless the activity

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

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

20  Costs to issue and administer such permits shall be considered

21  direct and indirect costs of the major stationary source

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

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

24  403.087(6)(a)4.a. for the construction of a new major source

25  of air pollution that will be subject to the permitting

26  requirements of this section once constructed and for

27  activities triggering permitting requirements under Title I,

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

29  7470-7514a.

30         (b)  Annual operation license fees collected by the

31  department must be sufficient to cover all reasonable direct

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




  1  and indirect costs required to develop and administer the

  2  major stationary source air-operation permit program, which

  3  shall consist of the following elements to the extent that

  4  they are reasonably related to the implementation of the

  5  regulation of major stationary source air-operation permit

  6  program pollution sources, in accordance with United States

  7  Environmental Protection Agency regulations and guidelines:

  8         1.  Reviewing and acting upon any application for such

  9  a permit.

10         2.  Implementing and enforcing the terms and conditions

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

12  associated with any enforcement action.

13         3.  Emissions and Ambient air monitoring only to the

14  extent that site-specific monitoring is necessary for the

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

16  as documented in the permit or permits.

17         4.  Preparing generally applicable regulations or

18  guidance only to the extent required for the implementation of

19  the major stationary source air-operation permit program.

20         5.  Modeling, analyses, and demonstrations, and

21  site-specific emissions monitoring only to the extent required

22  for the implementation of the major stationary source

23  air-operation permit program.

24         6.  Preparing inventories and tracking emissions only

25  to the extent required for the implementation of the major

26  stationary source air-operation permit program.

27         7.  Implementing the Small Business Stationary Source

28  Technical and Environmental Compliance Assistance Program.

29         8.  Conducting or providing for the conduct of the

30  required The study conducted under subparagraph (a)1. and Any

31  audits conducted under paragraph (c).

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    Florida Senate - 1998                           CS for SB 1554
    312-1869-98




  1         9.  Site-specific emissions monitoring in conjunction

  2  with an applicable requirement of a major stationary source.

  3         (c)  An audit of the major stationary source

  4  air-operation permit program must not be commenced until

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

  6  conducted 2 years after the United States Environmental

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

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

  9  whether the annual operation license fees collected by the

10  department are sufficient and are used by the department and

11  local programs solely to cover the support any reasonable

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

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

14  department's system for measuring program performance,

15  efficiency, and accountability. A program audit must be

16  performed every 5 years biennially after the first audit.

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

18

19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                             SB 1554

21

22  The committee substitute deletes certain obsolete language
    relating to a study that has already been conducted. Further
23  restricts the use of the air-operation license fees for
    modeling, analyses, and demonstrations.
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