House Bill 0187

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    Florida House of Representatives - 1999                 HB 187

        By Representative K. Smith






  1                      A bill to be entitled

  2         An act relating to air pollution; amending s.

  3         215.22, F.S.; exempting the Air Pollution

  4         Control Trust Fund from a required service

  5         charge; amending s. 403.0872, F.S.; revising

  6         procedure and requirements for annual operation

  7         license fee adjustments under the major

  8         stationary source air-operation permit program;

  9         restricting use of fees collected; deleting

10         obsolete language relating to a study;

11         providing for continued funding of certain

12         activities; revising time frames and

13         requirements for audits of the permit program;

14         reenacting s. 403.518, F.S., relating to annual

15         operation license fees for electrical power

16         plants, to incorporate the amendment to s.

17         403.0872, F.S., in a reference thereto;

18         providing an effective date.

19

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

21

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

23  section 215.22, Florida Statutes, 1998 Supplement, as amended

24  by chapter 98-414, Laws of Florida, to read:

25         215.22  Certain income and certain trust funds

26  exempt.--

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

28  following trust funds shall be exempt from the deduction

29  required by s. 215.20(1):

30         (v)  The Air Pollution Control Trust Fund.

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

  2  Florida Statutes, is amended to read:

  3         403.0872  Operation permits for major sources of air

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

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

  6  received from the United States Environmental Protection

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

  8  pollution, including electrical power plants certified under

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

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

11  which is the only department operation permit for a major

12  source of air pollution required for such source. Operation

13  permits for major sources of air pollution, except general

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

15  accordance with the following procedures and in accordance

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

17  inconsistent with the provisions of this section, the

18  procedures contained in this section prevail:

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

20  pollution permitted to operate in this state must pay between

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

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

23  determined by department rule. The annual operation license

24  fee shall be terminated immediately in the event the United

25  States Environmental Protection Agency imposes annual fees

26  solely to implement and administer the major source

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

28  70.10(d).

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

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

31  multiplying the applicable annual operation license fee factor

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

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

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

  4  times the annual hours of operation allowed by permit

  5  condition; provided, however, that:

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

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

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

  9  department rule which ensures that the revenue provided by

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

11  reasonable direct and indirect costs of the major stationary

12  source air-operation permit program established by this

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

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

15  beyond $25 only if the secretary of the department

16  affirmatively finds that a shortage or surplus of revenue for

17  support of the major stationary source air-operation permit

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

19  Only expenditures made or funded by the department that meet

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

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

22  revenue. The annual operation license fees collected by the

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

24  the functions of the permit program as described in

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

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

27  nationally recognized accounting firm to conduct a study to

28  determine the reasonable revenue requirements necessary to

29  support the development and administration of the major source

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

31  The results of that determination must be considered in

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

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

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

  4  the President of the Senate, the Speaker of the House of

  5  Representatives, and the Public Service Commission, including

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

  7  1994.

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

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

10  fee calculation must be based upon actual hours of operation

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

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

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

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

15  calculation must be based on the emissions limit applicable

16  during actual hours of operation.

17         3.  For any source whose allowable emission limitation

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

19  input or product output, the applicable input or production

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

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

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

23  documented, the maximum allowable input or production amount

24  specified in the permit must be used to calculate the

25  allowable emissions.

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

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

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

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

30  operate.

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

  2  pollutant than allowed by permit condition, the annual fee

  3  calculation for such pollutant must be based upon actual

  4  emissions rather than allowable emissions if the owner or

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

  6  data from a department-approved certified continuous emissions

  7  monitor or from an emissions monitoring method which has been

  8  approved by the United States Environmental Protection Agency

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

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

11  this section.

12         6.  The amount of each regulated air pollutant in

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

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

15  as described in the Standard Industrial Classification Manual,

16  1987, may not be included in the calculation of the fee. Any

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

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

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

20  licensing fee for the prorated portion of existing

21  air-operation permit application fees remaining upon

22  commencement of the annual licensing fees.

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

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

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

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

27  calendar year, commencing with calendar year 1997, the

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

29  50 percent of the amount of the fee, plus interest on such

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

31  may not impose such penalty or interest on any amount

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  1  underpaid, provided that the permittee has timely remitted

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

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

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

  5  collection of underpayment and shall not be required to refund

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

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

  8  major air pollution source operation permit if it finds that

  9  the permitholder has failed to timely pay any required annual

10  operation license fee, penalty, or interest.

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

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

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

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

15         9.  Notwithstanding the computational provisions of

16  this subsection, the annual operation license fee for any

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

18  except that the annual operation license fee for sources

19  permitted solely through general permits issued under s.

20  403.814 shall not exceed $50 per year.

21         10.  Notwithstanding the provisions of s.

22  403.087(6)(a)4.a., authorizing air pollution construction

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

24  changes or additions to a major source of air pollution

25  permitted pursuant to this section, unless the activity

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

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

28  Costs to issue and administer such permits shall be considered

29  direct and indirect costs of the major stationary source

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

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

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  1  403.087(6)(a)4.a. for the construction of a new major source

  2  of air pollution that will be subject to the permitting

  3  requirements of this section once constructed and for

  4  activities triggering permitting requirements under Title I,

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

  6  7470-7514a.

  7         (b)  Annual operation license fees collected by the

  8  department must be sufficient to cover all reasonable direct

  9  and indirect costs required to develop and administer the

10  major stationary source air-operation permit program, which

11  shall consist of the following elements to the extent that

12  they are reasonably related to the implementation of the

13  regulation of major stationary source air-operation permit

14  program air pollution sources, in accordance with United

15  States Environmental Protection Agency regulations and

16  guidelines:

17         1.  Reviewing and acting upon any application for such

18  a permit.

19         2.  Implementing and enforcing the terms and conditions

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

21  associated with any enforcement action.

22         3.  Emissions and Ambient air monitoring only to the

23  extent that site-specific monitoring is necessary for the

24  issuance of a major stationary source air-operation permit or

25  permits, as documented in the permit or permits.

26         4.  Preparing generally applicable regulations or

27  guidance only to the extent required for the implementation of

28  the major stationary source air-operation permit program.

29         5.  Modeling, analyses, and demonstrations, and

30  site-specific emissions monitoring only to the extent required

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  1  for the implementation of the major stationary source

  2  air-operation permit program.

  3         6.  Preparing inventories and tracking emissions only

  4  to the extent required for the implementation of the major

  5  stationary source air-operation permit program.

  6         7.  Implementing the Small Business Stationary Source

  7  Technical and Environmental Compliance Assistance Program.

  8         8.  Conducting or providing for the conduct of the

  9  audits required The study conducted under subparagraph (a)1.

10  and any audits conducted under paragraph (c).

11         9.  Site-specific emissions monitoring in conjunction

12  with an applicable requirement of a major stationary source.

13

14  However, each activity described in subparagraphs 1.-8., as

15  created by section 3 of chapter 92-132, Laws of Florida, which

16  was in existence before July 1, 1999, shall continue to be

17  funded from the Air Pollution Control Trust Fund on and after

18  July 1, 1999.

19         (c)  An audit of the major stationary source

20  air-operation permit program must not be commenced until

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

22  conducted 2 years after the United States Environmental

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

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

25  whether the annual operation license fees collected by the

26  department are sufficient and are used by the department and

27  local programs solely to cover the support any reasonable

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

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

30  department's system for measuring program performance,

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  1  efficiency, and accountability. A program audit must be

  2  performed every 5 years biennially after the first audit.

  3         Section 3.  For the purpose of incorporating the

  4  amendment to section 403.0872, Florida Statutes, in a

  5  reference thereto, subsection (2) of section 403.518, Florida

  6  Statutes, is reenacted to read:

  7         403.518  Fees; disposition.--

  8         (2)  Effective upon the date commercial operation

  9  begins, the operator of an electrical power plant certified

10  under this part is required to pay to the department an annual

11  operation license fee as specified in s. 403.0872(11) to be

12  deposited in the Air Pollution Control Trust Fund.

13         Section 4.  This act shall take effect July 1, 1999.

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15            *****************************************

16                          HOUSE SUMMARY

17
      Provides that revenue income deposited in the Air
18    Pollution Control Trust Fund is exempt from a service
      charge to fund general government. Revises procedure and
19    requirements for adjustments of annual operation license
      fees for support of the major stationary source
20    air-operation permit program. Restricts the use of fees
      collected to cover the costs of the permit program.
21    Provides for continued funding of certain activities
      funded prior to the effective date of the act. Revises
22    the time frame for initial audit of the permit program,
      revises audit requirements, and requires program audits
23    every 5 years after the initial audit, rather than
      biennially.
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