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House Bill 0771

Florida House of Representatives - 1997 HB 771 By Representative Wallace 1 A bill to be entitled 2 An act relating to pollution control; amending 3 s. 403.087, F.S.; increasing the term for which 4 certain permits may be issued by the Department 5 of Environmental Protection; providing for 6 renewal of operation permits for domestic 7 wastewater treatment facilities for up to a 8 specified term under certain circumstances at 9 the same fee; providing an exception; requiring 10 the department to keep certain records; 11 amending ss. 403.0871 and 403.0872, F.S.; 12 conforming cross references; amending s. 13 403.1835, F.S.; authorizing the department to 14 administer certain loans under certain 15 circumstances; providing additional 16 administrative authority for funds in the 17 Sewage Treatment Revolving Loan Fund; providing 18 for sales of loans under certain circumstances; 19 providing for disposition of loan sale 20 proceeds; authorizing the department to adopt 21 approaches to ensure viability of the fund; 22 providing an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Subsections (1) and (2) of section 403.087, 27 Florida Statutes, are amended, subsections (3) through (8) of 28 said section are renumbered as subsections (4) through (9), 29 respectively, and a new subsection (3) is added to said 30 section, to read: 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 403.087 Permits; general issuance; denial; revocation; 2 prohibition; penalty.-- 3 (1) A No stationary installation that is which will 4 reasonably be expected to be a source of air or water 5 pollution must not shall be operated, maintained, constructed, 6 expanded, or modified without an appropriate and currently 7 valid permit issued by the department, unless exempted by 8 department rule. In no event shall a permit for a water 9 pollution source be issued for a term of more than 10 5 years, 10 nor and in no event may an operation permit issued after July 11 1, 1992, for a major source of air pollution have a fixed term 12 of more than 5 years. However, upon expiration, a new permit 13 may be issued by the department in accordance with this 14 chapter act and the rules and regulations of the department. 15 (2) The department shall adopt, and may amend, or 16 repeal, rules, regulations, and standards for the issuance, 17 denial, modification, and revocation of permits under this 18 section. 19 (3) A renewal of an operation permit for a domestic 20 wastewater treatment facility other than a facility regulated 21 under the NPDES program under s. 403.0885 must be issued upon 22 request for a term of up to 10 years for the same fee as a 23 5-year permit, in order to provide the owner or operator with 24 a financial incentive, if: 25 (a) The waters from the treatment facility are not 26 discharged to Class 1 municipal injection wells or the 27 treatment facility is not required to comply with the federal 28 standards under the Underground Injection Control program 29 under chapter 62-528 of the Florida Administrative Code. 30 (b) The treatment facility is not operating under a 31 temporary operating permit or a permit with an accompanying 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 administrative order and does not have any enforcement action 2 pending against it by the Environmental Protection Agency, the 3 department, or a local program approved under s. 403.182. 4 (c) The treatment facility has operated under an 5 operation permit for 5 years and, for at least the preceding 2 6 years, has generally operated in conformance with the limits 7 of permitted flows and other conditions specified in the 8 permit. 9 (d) The department has reviewed the discharge 10 monitoring reports required under department rule and is 11 satisfied that the reports are accurate. 12 (e) The treatment facility has generally met water 13 quality standards in the preceding 2 years, except for 14 violations attributable to events beyond the control of the 15 treatment plant or its operator, such as destruction of 16 equipment by fire, wind, or other abnormal events that could 17 not reasonably be expected to occur. 18 (f) The department, or a local program approved under 19 s. 403.182, has conducted during the preceding 12 months an 20 inspection of the facility and has verified that the facility 21 is not exceeding the permitted capacity and is in substantial 22 compliance. 23 24 The department shall keep records of the number of 10-year 25 permits applied for and the number and duration of permits 26 issued for longer than 5 years. 27 Section 2. Section 403.0871, Florida Statutes, 1996 28 Supplement, is amended to read: 29 403.0871 Florida Permit Fee Trust Fund.--There is 30 established within the department a nonlapsing trust fund to 31 be known as the "Florida Permit Fee Trust Fund." All funds 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 received from applicants for permits pursuant to ss. 161.041, 2 161.053, 161.0535, 403.087(6)(5), and 403.861(8) shall be 3 deposited in the Florida Permit Fee Trust Fund and shall be 4 used by the department with the advice and consent of the 5 Legislature to supplement appropriations and other funds 6 received by the department for the administration of its 7 responsibilities under this chapter and chapter 161. In no 8 case shall funds from the Florida Permit Fee Trust Fund be 9 used for salary increases without the approval of the 10 Legislature. 11 Section 3. Paragraph (a) of subsection (11) of section 12 403.0872, Florida Statutes, 1996 Supplement, is amended to 13 read: 14 403.0872 Operation permits for major sources of air 15 pollution; annual operation license fee.--Provided that 16 program approval pursuant to 42 U.S.C. s. 7661a has been 17 received from the United States Environmental Protection 18 Agency, beginning January 2, 1995, each major source of air 19 pollution, including electrical power plants certified under 20 s. 403.511, must obtain from the department an operation 21 permit for a major source of air pollution under this section, 22 which is the only department operation permit for a major 23 source of air pollution required for such source. Operation 24 permits for major sources of air pollution, except general 25 permits issued pursuant to s. 403.814, must be issued in 26 accordance with the following procedures and in accordance 27 with chapter 120; however, to the extent that chapter 120 is 28 inconsistent with the provisions of this section, the 29 procedures contained in this section prevail: 30 (11) Commencing in 1993, each major source of air 31 pollution permitted to operate in this state must pay between 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 January 15 and March 1 of each year, upon written notice from 2 the department, an annual operation license fee in an amount 3 determined by department rule. The annual operation license 4 fee shall be terminated immediately in the event the United 5 States Environmental Protection Agency imposes annual fees 6 solely to implement and administer the major source 7 air-operation permit program in Florida under 40 C.F.R. s. 8 70.10(d). 9 (a) The annual fee must be assessed based upon the 10 source's previous year's emissions and must be calculated by 11 multiplying the applicable annual operation license fee factor 12 times the tons of each regulated air pollutant (except carbon 13 monoxide) allowed to be emitted per hour by specific condition 14 of the source's most recent construction or operation permit, 15 times the annual hours of operation allowed by permit 16 condition; provided, however, that: 17 1. For 1993 and 1994, the license fee factor is $10. 18 For 1995, the license fee factor is $25. In succeeding years, 19 the license fee factor is $25 or another amount determined by 20 department rule which ensures that the revenue provided by 21 each year's operation license fees is sufficient to cover all 22 reasonable direct and indirect costs of the major stationary 23 source air-operation permit program established by this 24 section. The license fee factor may be increased beyond $25 25 only if the secretary of the department affirmatively finds 26 that a shortage of revenue for support of the major stationary 27 source air-operation permit program will occur in the absence 28 of a fee factor adjustment. The annual license fee factor may 29 never exceed $35. The department shall retain a nationally 30 recognized accounting firm to conduct a study to determine the 31 reasonable revenue requirements necessary to support the 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 development and administration of the major source 2 air-operation permit program as prescribed in paragraph (b). 3 The results of that determination must be considered in 4 assessing whether a $25-per-ton fee factor is sufficient to 5 adequately fund the major source air-operation permit program. 6 The results of the study must be presented to the Governor, 7 the President of the Senate, the Speaker of the House of 8 Representatives, and the Public Service Commission, including 9 the Public Counsel's Office, by no later than October 31, 10 1994. 11 2. For any source that operates for fewer hours during 12 the calendar year than allowed under its permit, the annual 13 fee calculation must be based upon actual hours of operation 14 rather than allowable hours if the owner or operator of the 15 source documents the source's actual hours of operation for 16 the calendar year. For any source that has an emissions limit 17 that is dependent upon the type of fuel burned, the annual fee 18 calculation must be based on the emissions limit applicable 19 during actual hours of operation. 20 3. For any source whose allowable emission limitation 21 is specified by permit per units of material input or heat 22 input or product output, the applicable input or production 23 amount may be used to calculate the allowable emissions if the 24 owner or operator of the source documents the actual input or 25 production amount. If the input or production amount is not 26 documented, the maximum allowable input or production amount 27 specified in the permit must be used to calculate the 28 allowable emissions. 29 4. For any new source that does not receive its first 30 operation permit until after the beginning of a calendar year, 31 the annual fee for the year must be reduced pro rata to 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 reflect the period during which the source was not allowed to 2 operate. 3 5. For any source that emits less of any regulated air 4 pollutant than allowed by permit condition, the annual fee 5 calculation for such pollutant must be based upon actual 6 emissions rather than allowable emissions if the owner or 7 operator documents the source's actual emissions by means of 8 data from a department-approved certified continuous emissions 9 monitor or from an emissions monitoring method which has been 10 approved by the United States Environmental Protection Agency 11 under the regulations implementing 42 U.S.C. ss. 7651 et seq., 12 or from a method approved by the department for purposes of 13 this section. 14 6. The amount of each regulated air pollutant in 15 excess of 4,000 tons per year allowed to be emitted by any 16 source, or group of sources belonging to the same Major Group 17 as described in the Standard Industrial Classification Manual, 18 1987, may not be included in the calculation of the fee. Any 19 source, or group of sources, which does not emit any regulated 20 air pollutant in excess of 4,000 tons per year, is allowed a 21 one-time credit not to exceed 25 percent of the first annual 22 licensing fee for the prorated portion of existing 23 air-operation permit application fees remaining upon 24 commencement of the annual licensing fees. 25 7. If the department has not received the fee by 26 February 15 of the calendar year, the permittee must be sent a 27 written warning of the consequences for failing to pay the fee 28 by March 1. If the department has not received the fee by 29 March 1 of the calendar year, the department shall impose, in 30 addition to the fee, a penalty of 50 percent of the amount of 31 the fee, plus interest on such amount computed in accordance 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 with s. 220.807. The department may not impose such penalty 2 or interest on any amount underpaid, provided that the 3 permittee has timely remitted payment of at least 90 percent 4 of the amount determined to be due and remits full payment 5 within 60 days after receipt of notice of the amount 6 underpaid. The department may waive the collection of 7 underpayment and shall not be required to refund overpayment 8 of the fee, if the amount due is less than 1 percent of the 9 fee, up to $50. The department may revoke any major air 10 pollution source operation permit if it finds that the 11 permitholder has failed to timely pay any required annual 12 operation license fee, penalty, or interest. 13 8. During the years 1993 through 1999, inclusive, no 14 fee shall be required to be paid under this section with 15 respect to emissions from any unit which is an affected unit 16 under 42 U.S.C. s. 7651c. 17 9. Notwithstanding the computational provisions of 18 this subsection, the annual operation license fee for any 19 source subject to this section shall not be less than $250, 20 except that the annual operation license fee for sources 21 permitted solely through general permits issued under s. 22 403.814 shall not exceed $50 per year. 23 10. Notwithstanding the provisions of s. 24 403.087(6)(5)(a)4.a., authorizing air pollution construction 25 permit fees, the department may not require such fees for 26 changes or additions to a major source of air pollution 27 permitted pursuant to this section, unless the activity 28 triggers permitting requirements under Title I, Part C or Part 29 D, of the federal Clean Air Act, 42 U.S.C. ss. 7470-7514a. 30 Costs to issue and administer such permits shall be considered 31 direct and indirect costs of the major stationary source 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 air-operation permit program under s. 403.0873. The department 2 shall, however, require fees pursuant to the provisions of s. 3 403.087(6)(5)(a)4.a. for the construction of a new major 4 source of air pollution that will be subject to the permitting 5 requirements of this section once constructed and for 6 activities triggering permitting requirements under Title I, 7 Part C or Part D, of the federal Clean Air Act, 42 U.S.C. ss. 8 7470-7514a. 9 Section 4. Subsections (1), (3), (9), and (10) of 10 section 403.1835, Florida Statutes, are amended to read: 11 403.1835 Sewage treatment facilities revolving loan 12 program.-- 13 (1) The purpose of this section is to assist in 14 implementing the legislative declaration of public policy as 15 contained in s. 403.021 by establishing a self-perpetuating 16 loan program to accelerate construction of sewage treatment 17 facilities by local governmental agencies and to assist local 18 governmental agencies. 19 (3) The department is authorized to make loans to 20 local governmental agencies to assist them in planning, 21 designing, and constructing sewage treatment facilities. The 22 department may administer the resulting portfolio of loans, 23 including the authority to sell or pledge the loans, or any 24 portion of the loans, subject to the approval of the Governor, 25 the Treasurer, and the Comptroller, sitting as the State Board 26 of Administration, to ensure compliance with subsection (1). 27 The department is authorized to use the funds to provide loan 28 guarantees, to purchase loan insurance, and to refinance local 29 debt through the issue of new loans for projects approved by 30 the department. Local governmental agencies are authorized to 31 borrow funds made available pursuant to this section and may 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 pledge any revenue available to them to repay any funds 2 borrowed. The department shall administer loans to local 3 governmental agencies so that at least 15 percent of each 4 annual allocation for loans is reserved for small communities. 5 (9) A nonlapsing trust fund with revolving loan 6 provisions to be known as the "Sewage Treatment Revolving Loan 7 Fund" is hereby established in the State Treasury to be used 8 as a revolving fund by the department to carry out the purpose 9 of this section. Any funds therein which are not needed on an 10 immediate basis for loans may be invested pursuant to s. 11 215.49. The cost of administering the program shall, to the 12 extent possible, be paid from federal funds and, when federal 13 funds become no longer available, from reasonable service fees 14 that may be imposed upon loans and from proceeds from the sale 15 of loans as permitted by federal law. Grants awarded by the 16 Federal Government to fund revolving loans for local 17 governmental agencies' sewage treatment facilities shall be 18 deposited into the fund. Proceeds from sales of loans shall 19 be deposited into the fund. All moneys available in the fund, 20 including investment earnings on such amounts, are hereby 21 designated to carry out the purpose of this section. The 22 Principal and interest payments with respect to of all loans 23 held by the fund repaid and investment earnings shall be 24 deposited into this fund. 25 (10)(a) Because the Legislature has experienced 26 revenue shortfalls in recent years and has been unable to 27 provide enough funds to fully match available federal funds to 28 help capitalize the Sewage Treatment Revolving Loan Fund, it 29 is necessary for innovative approaches to be considered to 30 help capitalize the revolving loan fund. The department shall 31 evaluate potential innovative approaches that can generate 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 771 567-114C-97 1 funds to match available federal funds. The department may 2 adopt approaches which will help ensure the continuing 3 viability of the Sewage Treatment Revolving Loan Fund. The 4 department shall consider, among other possible alternatives, 5 the option of implementing by rule a program to allow local 6 governments to offer funds voluntarily to the state for use as 7 a match to available federal funds to capitalize the state 8 sewage treatment revolving loan fund. 9 (b) The department may adopt rules necessary to 10 administer this section. 11 Section 5. This act shall take effect October 1, 1997. 12 13 ***************************************** 14 HOUSE SUMMARY 15 Increases from 5 years to 10 years the term of years for 16 certain water pollution permits issued by the Department of Environmental Protection. Provides standards and an 17 exception for renewal of wastewater treatment operation permits at the same fee. Provides additional 18 administrative authority by the department over the Sewage Treatment Revolving Loan Fund. Provides for sales 19 of loans and disposition of loan sale proceeds. See bill for details. 20 21 22 23 24 25 26 27 28 29 30 31 11