House Bill 3795c1

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    Florida House of Representatives - 1998             CS/HB 3795

        By the Committee on Environmental Protection and
    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:

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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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  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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  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 consider the

25  1994 study conducted by Peat Marwick, which was designed

26  retain a nationally recognized accounting firm to conduct a

27  study to determine the reasonable revenue requirements

28  necessary to support the development and administration of the

29  major source air-operation permit program as prescribed in

30  paragraph (b),. The results of that determination must be

31  considered in assessing whether a $25-per-ton fee factor is

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  1  sufficient to adequately fund the major source air-operation

  2  permit program. The results of the study must be presented to

  3  the Governor, the President of the Senate, the Speaker of the

  4  House of Representatives, and the Public Service Commission,

  5  including the Public Counsel's Office, by no later than

  6  October 31, 1994.

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

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

  9  fee calculation must be based upon actual hours of operation

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

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

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

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

14  calculation must be based on the emissions limit applicable

15  during actual hours of operation.

16         3.  For any source whose allowable emission limitation

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

18  input or product output, the applicable input or production

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

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

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

22  documented, the maximum allowable input or production amount

23  specified in the permit must be used to calculate the

24  allowable emissions.

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

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

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

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

29  operate.

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

31  pollutant than allowed by permit condition, the annual fee

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  1  calculation for such pollutant must be based upon actual

  2  emissions rather than allowable emissions if the owner or

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

  4  data from a department-approved certified continuous emissions

  5  monitor or from an emissions monitoring method which has been

  6  approved by the United States Environmental Protection Agency

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

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

  9  this section.

10         6.  The amount of each regulated air pollutant in

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

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

13  as described in the Standard Industrial Classification Manual,

14  1987, may not be included in the calculation of the fee. Any

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

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

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

18  licensing fee for the prorated portion of existing

19  air-operation permit application fees remaining upon

20  commencement of the annual licensing fees.

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

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

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

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

25  calendar year, commencing with calendar year 1997, the

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

27  50 percent of the amount of the fee, plus interest on such

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

29  may not impose such penalty or interest on any amount

30  underpaid, provided that the permittee has timely remitted

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

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

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

  3  collection of underpayment and shall not be required to refund

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

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

  6  major air pollution source operation permit if it finds that

  7  the permitholder has failed to timely pay any required annual

  8  operation license fee, penalty, or interest.

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

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

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

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

13         9.  Notwithstanding the computational provisions of

14  this subsection, the annual operation license fee for any

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

16  except that the annual operation license fee for sources

17  permitted solely through general permits issued under s.

18  403.814 shall not exceed $50 per year.

19         10.  Notwithstanding the provisions of s.

20  403.087(6)(a)4.a., authorizing air pollution construction

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

22  changes or additions to a major source of air pollution

23  permitted pursuant to this section, unless the activity

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

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

26  Costs to issue and administer such permits shall be considered

27  direct and indirect costs of the major stationary source

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

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

30  403.087(6)(a)4.a. for the construction of a new major source

31  of air pollution that will be subject to the permitting

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  1  requirements of this section once constructed and for

  2  activities triggering permitting requirements under Title I,

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

  4  7470-7514a.

  5         (b)  Annual operation license fees collected by the

  6  department must be sufficient to cover all reasonable direct

  7  and indirect costs required to develop and administer the

  8  major stationary source air-operation permit program, which

  9  shall consist of the following elements to the extent that

10  they are reasonably related to the implementation of the

11  regulation of major stationary source air-operation permit

12  program air pollution sources, in accordance with United

13  States Environmental Protection Agency regulations and

14  guidelines:

15         1.  Reviewing and acting upon any application for such

16  a permit.

17         2.  Implementing and enforcing the terms and conditions

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

19  associated with any enforcement action.

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

21  extent site-specific monitoring is necessary for the issuance

22  of any major stationary source air-operation permit or

23  permits, as documented in the permit or permits.

24         4.  Preparing generally applicable regulations or

25  guidance, only to the extent required for the implementation

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

27         5.  Modeling, analyses, and demonstrations, and

28  site-specific emissions monitoring, only to the extent

29  required for the implementation of the major stationary source

30  air-operation permit program.

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  1         6.  Preparing inventories and tracking emissions, only

  2  to the extent required for the implementation of the major

  3  stationary source air-operation permit program.

  4         7.  Implementing the Small Business Stationary Source

  5  Technical and Environmental Compliance Assistance Program.

  6         8.  Conducting or providing for the conduct of the

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

  8  required conducted under paragraph (c).

  9         (c)  An audit of the major stationary source

10  air-operation permit program shall not be commenced until

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

12  be conducted 2 years after the United States Environmental

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

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

15  whether the annual operation license fees collected by the

16  department are sufficient and used by the department and local

17  programs solely to cover the support any reasonable direct and

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

19  audit shall evaluate the department's system for measuring

20  program performance, efficiency, and accountability. A program

21  audit must be performed every 5 years biennially after the

22  first audit.

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

24  year in which enacted.

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