House Bill 3795

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    Florida House of Representatives - 1998                HB 3795

        By Representative Smith






  1                      A bill to be entitled

  2         An act relating to air pollution control;

  3         amending s. 215.22, F.S.; exempting the Air

  4         Pollution Control Trust Fund from the general

  5         revenue service charge deduction; amending s.

  6         403.0872, F.S., relating to operation permits

  7         for major sources of air pollution; revising

  8         provisions relating to calculation of the

  9         annual operation license fee; providing for

10         adjustments to the license fee factor;

11         providing restrictions on calculating whether

12         there is a revenue shortage; restricting use of

13         annual operation license fees collected;

14         revising elements of the major stationary

15         source air-operation permit program for

16         purposes of establishing annual operation

17         license fees; revising program audit

18         requirements; providing an effective date.

19

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

21

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

23  section 215.22, Florida Statutes, to read:

24         215.22  Certain income and certain trust funds

25  exempt.--

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

27  following trust funds shall be exempt from the deduction

28  required by s. 215.20(1):

29         (t)  The Air Pollution Control Trust Fund.

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

31  Florida Statutes, is amended to read:

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    Florida House of Representatives - 1998                HB 3795

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  1         403.0872  Operation permits for major sources of air

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

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

  4  received from the United States Environmental Protection

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

  6  pollution, including electrical power plants certified under

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

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

  9  which is the only department operation permit for a major

10  source of air pollution required for such source. Operation

11  permits for major sources of air pollution, except general

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

13  accordance with the following procedures and in accordance

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

15  inconsistent with the provisions of this section, the

16  procedures contained in this section prevail:

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

18  pollution permitted to operate in this state must pay between

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

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

21  determined by department rule. The annual operation license

22  fee shall be terminated immediately in the event the United

23  States Environmental Protection Agency imposes annual fees

24  solely to implement and administer the major source

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

26  70.10(d).

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

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

29  multiplying the applicable annual operation license fee factor

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

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

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    Florida House of Representatives - 1998                HB 3795

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

  2  times the annual hours of operation allowed by permit

  3  condition; provided, however, that:

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

  5  For 1995, The license fee factor is $25. In succeeding years,

  6  the license fee factor is $25 or another amount determined by

  7  department rule which ensures that the revenue provided by

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

  9  reasonable direct and indirect costs of the major stationary

10  source air-operation permit program established by this

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

12  after an audit required under paragraph (c) and increased

13  beyond $25 only if the secretary of the department

14  affirmatively finds that a shortage or surplus of revenue for

15  support of the major stationary source air-operation permit

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

17  Only expenditures made or funded by the department which meet

18  the requirements of subparagraph 10. and paragraph (b) may be

19  used in calculating whether there is a shortage of revenue.

20  The annual operation license fees collected by the department

21  shall be used solely to cover the costs of meeting the

22  functions of the permitting program as described in

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

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

25  nationally recognized accounting firm to conduct a study to

26  determine the reasonable revenue requirements necessary to

27  support the development and administration of the major source

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

29  The results of that determination must be considered in

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

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

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

  2  the President of the Senate, the Speaker of the House of

  3  Representatives, and the Public Service Commission, including

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

  5  1994.

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

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

  8  fee calculation must be based upon actual hours of operation

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

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

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

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

13  calculation must be based on the emissions limit applicable

14  during actual hours of operation.

15         3.  For any source whose allowable emission limitation

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

17  input or product output, the applicable input or production

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

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

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

21  documented, the maximum allowable input or production amount

22  specified in the permit must be used to calculate the

23  allowable emissions.

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

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

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

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

28  operate.

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

30  pollutant than allowed by permit condition, the annual fee

31  calculation for such pollutant must be based upon actual

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  1  emissions rather than allowable emissions if the owner or

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

  3  data from a department-approved certified continuous emissions

  4  monitor or from an emissions monitoring method which has been

  5  approved by the United States Environmental Protection Agency

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

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

  8  this section.

  9         6.  The amount of each regulated air pollutant in

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

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

12  as described in the Standard Industrial Classification Manual,

13  1987, may not be included in the calculation of the fee. Any

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

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

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

17  licensing fee for the prorated portion of existing

18  air-operation permit application fees remaining upon

19  commencement of the annual licensing fees.

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

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

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

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

24  calendar year, commencing with calendar year 1997, the

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

26  50 percent of the amount of the fee, plus interest on such

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

28  may not impose such penalty or interest on any amount

29  underpaid, provided that the permittee has timely remitted

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

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

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

  2  collection of underpayment and shall not be required to refund

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

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

  5  major air pollution source operation permit if it finds that

  6  the permitholder has failed to timely pay any required annual

  7  operation license fee, penalty, or interest.

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

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

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

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

12         9.  Notwithstanding the computational provisions of

13  this subsection, the annual operation license fee for any

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

15  except that the annual operation license fee for sources

16  permitted solely through general permits issued under s.

17  403.814 shall not exceed $50 per year.

18         10.  Notwithstanding the provisions of s.

19  403.087(6)(a)4.a., authorizing air pollution construction

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

21  changes or additions to a major source of air pollution

22  permitted pursuant to this section, unless the activity

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

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

25  Costs to issue and administer such permits shall be considered

26  direct and indirect costs of the major stationary source

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

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

29  403.087(6)(a)4.a. for the construction of a new major source

30  of air pollution that will be subject to the permitting

31  requirements of this section once constructed and for

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  1  activities triggering permitting requirements under Title I,

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

  3  7470-7514a.

  4         (b)  Annual operation license fees collected by the

  5  department must be sufficient to cover all reasonable direct

  6  and indirect costs required to develop and administer the

  7  major stationary source air-operation permit program, which

  8  shall consist of the following elements to the extent that

  9  they are reasonably related to the implementation of the

10  regulation of major stationary source air-operation permit

11  program air pollution sources, in accordance with United

12  States Environmental Protection Agency regulations and

13  guidelines:

14         1.  Reviewing and acting upon any application for such

15  a permit.

16         2.  Implementing and enforcing the terms and conditions

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

18  associated with any enforcement action.

19         3.  Emissions and Ambient air monitoring, only to the

20  extent site-specific monitoring is necessary for the issuance

21  of any major stationary source air-operation permit or

22  permits, as documented in the permit or permits.

23         4.  Preparing generally applicable regulations or

24  guidance, only to the extent required for the implementation

25  of the major stationary source air-operation permit program.

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

27  extent required for the implementation of the major stationary

28  source air-operation permit program.

29         6.  Preparing inventories and tracking emissions, only

30  to the extent required for the implementation of the major

31  stationary source air-operation permit program.

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    Florida House of Representatives - 1998                HB 3795

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  1         7.  Implementing the Small Business Stationary Source

  2  Technical and Environmental Compliance Assistance Program.

  3         8.  Conducting or providing for the conduct of the

  4  study conducted under subparagraph (a)1. and any audits

  5  required conducted under paragraph (c).

  6         9.  Site-specific emissions monitoring in conjunction

  7  with an applicable requirement of a major stationary source.

  8         (c)  An audit of the major stationary source

  9  air-operation permit program shall not be commenced until

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

11  be conducted 2 years after the United States Environmental

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

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

14  whether the annual operation license fees collected by the

15  department are sufficient and used by the department and local

16  programs solely to cover the support any reasonable direct and

17  indirect costs as listed in paragraph (b). In addition, the

18  audit shall evaluate the department's system for measuring

19  program performance, efficiency, and accountability. A program

20  audit must be performed every 5 years biennially after the

21  first audit.

22         Section 3.  This act shall take effect July 1 of the

23  year in which enacted.

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  2                          HOUSE SUMMARY

  3
      Exempts the Air Pollution Control Trust Fund from the
  4    general revenue service charge deduction. Revises
      provisions relating to calculation of the annual
  5    operation license fee assessed against holders of
      operation permits for major sources of air pollution.
  6    Provides for adjustments to the license fee factor and
      restrictions on calculating whether there is a revenue
  7    shortage. Restricts use of annual operation license fees
      collected. Revises elements of the major stationary
  8    source air-operation permit program for purposes of
      establishing annual operation license fees, and revises
  9    program audit requirements. See bill for details.

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