House Bill 1753c1

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    Florida House of Representatives - 2000             CS/HB 1753

        By the Committee on Finance & Taxation and Representatives
    Alexander and Spratt





  1                      A bill to be entitled

  2         An act relating to environmental control;

  3         creating s. 403.08725, F.S.; providing

  4         requirements for citrus juice processing

  5         facilities with respect to obtaining air

  6         pollution, construction, and operations

  7         permits; providing definitions; providing

  8         emissions limits for such facilities; requiring

  9         certification of information submitted by

10         citrus juice processing facilities to the

11         Department of Environmental Protection;

12         providing requirements with respect to

13         determination and reporting of facility

14         emissions; requiring the submission of annual

15         operating reports; requiring maintenance of

16         records; providing an affirmative defense to

17         certain enforcement actions; adopting and

18         incorporating specified federal regulations by

19         reference; providing requirements,

20         specifications, and restrictions with respect

21         to air emissions trading; providing for annual

22         emissions fees; providing penalty for failure

23         to pay fees; providing for deposit of fees in

24         the Air Pollution Control Trust Fund; providing

25         requirements with respect to construction of

26         new facilities or modification of existing

27         facilities; providing for the adoption of rules

28         by the department; requiring the department to

29         provide a report to the Legislature; providing

30         for submission of the act to the United States

31         Environmental Protection Agency; providing for

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  1         applicability of the act and compliance

  2         requirements for facilities in the event of

  3         federal nonapproval; amending s. 120.80, F.S.;

  4         providing an exception to specified rulemaking

  5         by the Department of Environmental Protection;

  6         directing the department to explore

  7         alternatives to traditional methods of

  8         regulatory permitting and to consider specific

  9         limited pilot projects to test new compliance

10         measures; providing reporting requirements;

11         amending s. 403.0872, F.S.; requiring the

12         Department of Environmental Protection to issue

13         a separate acid rain permit for specified major

14         sources of air pollution upon request of the

15         applicant; providing an effective date.

16

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

18

19         Section 1.  Section 403.08725, Florida Statutes, is

20  created to read:

21         403.08725  Citrus juice processing facilities.--

22         (1)  COMPLIANCE REQUIREMENTS; DEFINITIONS.--Effective

23  July 1, 2002, all existing citrus juice processing facilities

24  shall comply with the provisions of this section in lieu of

25  obtaining air pollution, construction, and operation permits,

26  notwithstanding the permit requirements of ss. 403.087(1) and

27  403.0872. For purposes of this section, "existing juice

28  processing facility" means any facility that currently has air

29  pollution construction or operation permits issued by the

30  department with a fruit processing capacity of 2 million boxes

31  per year or more. For purposes of this section, "facility"

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  1  means all emissions units at a plant that processes citrus

  2  fruit to produce single-strength or frozen concentrated juice

  3  and other products and byproducts identified by Major Group

  4  Standard Industrial Classification Codes 2033, 2037, and 2048

  5  which are located within a contiguous area and are owned or

  6  operated under common control, along with all emissions units

  7  located in the contiguous area and under the same common

  8  control which directly support the operation of the citrus

  9  juice processing function. For purposes of this section,

10  facilities that do not operate a citrus peel dryer are not

11  subject to the requirements of paragraph (2)(c). For purposes

12  of this section, "department" means the Department of

13  Environmental Protection. Notwithstanding any other provision

14  of law to the contrary, for purposes of the permitted emission

15  limits of this section, "new sources" means emissions units

16  constructed or added to a facility on or after July 1, 2000,

17  and "existing sources" means emissions units constructed or

18  modified before July 1, 2000.

19         (2)  PERMITTED EMISSIONS LIMITS.--All facilities

20  authorized to construct and operate under this section shall

21  operate within the most stringent of the emissions limits set

22  forth in paragraphs (a)-(g) for each new and existing source:

23         (a)  Any applicable standard promulgated by the United

24  States Environmental Protection Agency.

25         (b)  Each facility shall comply with the emissions

26  limitations of its Title V permit, and any properly issued and

27  certified valid preconstruction permits, until October 31,

28  2002, at which time the requirements of this section shall

29  supersede the requirements of the permits. Nothing in this

30  paragraph shall preclude the department's authority to

31  evaluate past compliance with all department rules.

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  1         (c)  After October 31, 2002, for volatile organic

  2  compounds, the level of emissions achievable by a 50-percent

  3  recovery of oil from citrus fruits processed as determined by

  4  the methodology described in subparagraph (4)(a)1. One year

  5  after EPA approval pursuant to subsection (9), for volatile

  6  organic compounds, the level of emissions achievable by a 65

  7  percent recovery of oil from citrus fruits processed as

  8  determined by the methodology described in subparagraph

  9  (4)(a)1.

10         (d)  After October 31, 2002, except as otherwise

11  provided herein, no facility shall fire fuel oil containing

12  greater than 0.5 percent sulfur by weight. Those facilities

13  without access to natural gas shall be limited to fuel oil

14  containing no greater than 1 percent sulfur by weight.  In

15  addition, facilities may use fuel oil with no greater than 1.5

16  percent sulfur by weight for up to 400 hours per calendar

17  year. The use of natural gas is not limited by this paragraph.

18  The use of d-limonene as a fuel is not limited by this

19  paragraph.

20         (e)  After October 31, 2002, for particulate matter of

21  10 microns or less, the emissions levels, expressed in pounds

22  per million British thermal units of heat input, unless

23  otherwise specified, are established for the following types

24  of new and existing sources:

25         1.  Citrus peel dryer, regardless of production

26  capacity:  15 pounds per hour.

27         2.  Pellet cooler or cooling reel, regardless of

28  production capacity:  5 pounds per hour.

29         3.  Process steam boiler:

30         a.  Sources fired with natural gas, propane, biogas, or

31  d-limonene:  not limited.

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  1         b.  New sources fired with fuel oil:  0.10 pounds per

  2  million British thermal units.

  3

  4  No process steam boiler shall fire any fuel other than natural

  5  gas, propane, biogas, d-limonene, or fuel oil. No process

  6  steam boiler shall fire used oil.

  7         4.  Combustion turbine:

  8         a.  Existing sources regardless of fuel:  not limited.

  9         b.  New sources fired with natural gas, propane, or

10  biogas:  not limited.

11         c.  New sources fired with fuel oil:  0.10 pounds per

12  million British thermal units.

13

14  No combustion turbine shall fire any fuel other than natural

15  gas, propane, biogas, or fuel oil.  No combustion turbine

16  shall fire used oil.

17         5.  Duct burner:

18         a.  New and existing sources fired with natural gas,

19  propane, or biogas:  not limited.

20         b.  New and existing sources fired with fuel oil:  0.10

21  pounds per million British thermal units.

22

23  No duct burner shall fire any fuel other than natural gas,

24  propane, biogas, or fuel oil. No duct burner shall fire used

25  oil.

26         6.  Glass plant furnace: existing sources with a

27  maximum non-cullet material process input rate of 18 tons per

28  hour; hourly emissions limited as determined by the following

29  equation:  Emission limit (pounds per hour) = 3.59 x (process

30  rate, tons per hour raised to the 0.62 power). No glass plant

31  furnace shall fire any fuel other than natural gas, propane,

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  1  biogas, d-limonene, or fuel oil. No glass plant furnace shall

  2  fire used oil.

  3         7.  Biogas flare for anaerobic reactor:  not limited.

  4         8.  Emergency generator:  not limited.

  5         9.  Volatile organic compounds emission control

  6  incinerator:  not limited.

  7         (f)  After October 31, 2002, for nitrogen oxides, the

  8  emissions levels, expressed in pounds of nitrogen dioxide per

  9  million British thermal units of heat produced, unless

10  otherwise specified, are established for the following types

11  of new and existing sources:

12         1.  Citrus peel dryer:

13         a.  Sources that fire natural gas, propane, biogas, or

14  d-limonene:  not limited.

15         b.  Sources that fire fuel oil:  0.34 pounds per

16  million British thermal units.

17         2.  Process steam boiler:

18         a.  New sources with a heat input capacity of 67

19  million British thermal units per hour or less and existing

20  sources regardless of heat input capacity: not limited.

21         b.  New sources with a heat input capacity of more than

22  67 million British thermal units per hour:  0.10 pounds per

23  million British thermal units.

24         3.  Combustion turbine:

25         a.  Existing sources regardless of fuel:

26         (I)  Existing combustion turbine of approximately 425

27  million British thermal units per hour heat input capacity:

28  42 parts per million volume dry at 15 percent oxygen.

29         (II)  Existing combustion turbines of approximately 50

30  million British thermal units per hour heat input capacity

31

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  1  each, constructed prior to July 1999:  168 parts per million

  2  volume dry at 15 percent oxygen.

  3         (III)  Existing combustion turbine of approximately 50

  4  million British thermal units per hour heat input capacity,

  5  constructed after July 1999:  50 parts per million volume dry

  6  at 15 percent oxygen.

  7         b.  New sources with less than 50 megawatts of

  8  mechanically generated electrical capacity, regardless of

  9  fuel:  25 parts per million volume dry at 15 percent oxygen.

10         c.  New sources with greater than or equal to 50

11  megawatts of mechanically generated electrical capacity,

12  regardless of fuel:  3.5 parts per million volume dry at 15

13  percent oxygen.

14         4.  Duct burner:

15         a.  Existing sources fired with natural gas, propane,

16  or biogas:  not limited.

17         b.  Sources fired with fuel oil:  0.20 pounds per

18  million British thermal units.

19         5.  Glass plant furnace:

20         a.  Existing sources regardless of production capacity:

21  not limited.

22         b.  New sources firing gaseous fuels or fuel oil,

23  regardless of production capacity:  5.5 pounds per ton of

24  glass produced.

25         6.  Biogas flare for anaerobic reactor: not limited.

26         7.  Emergency generator:  not limited.

27         8.  Volatile organic compound emission control

28  incinerator:  not limited.

29         (g)  After October 31, 2002, for visible emissions, the

30  levels of visible emissions at all times during operation,

31

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  1  expressed as a percent of opacity, are established for the

  2  following types of emission sources:

  3         1.  Citrus peel dryer:  20 percent.

  4         2.  Pellet cooler or cooling reel:  5 percent.

  5         3.  Process steam boiler:  20 percent.

  6         4.  Combustion turbine:  10 percent.

  7         5.  Duct burner:  limited to the visible emissions

  8  limit of the associated combustion turbine.

  9         6.  Glass plant furnace:  20 percent.

10         7.  Biogas flare for anaerobic reactor:  20 percent.

11         8.  Emergency generator:  20 percent.

12         9.  Lime storage silo:  10 percent.

13         10.  Volatile organic compounds emission control

14  incinerator:  5 percent.

15         (3)  EMISSIONS DETERMINATION AND REPORTING.--

16         (a)  All information submitted to the department by

17  facilities authorized to operate under this section shall be

18  certified as true, accurate, and complete by a responsible

19  official of the facility.  For purposes of this section,

20  "responsible official" means that person who would be allowed

21  to certify information and take action under the department's

22  Title V permitting rules.

23         (b)  All emissions for which the facility is limited by

24  any standard promulgated by the United States Environmental

25  Protection Agency must be determined and reported by a

26  responsible official of the facility in accordance with the

27  promulgated requirement. Reports required by this section

28  shall be certified and submitted to the department.

29         (c)  All emissions units subject to any enhanced

30  monitoring requirement under any regulation promulgated by the

31

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  1  United States Environmental Protection Agency must comply with

  2  such requirement.

  3         (d)  All emissions for which the facility is limited by

  4  paragraphs (2)(b)-(f) shall be determined on a calendar-year

  5  basis and reported to the department by a responsible official

  6  of the facility no later than April 1 of the following year.

  7  Emissions shall be determined for each emissions unit by means

  8  of recordkeeping, test methods, units, averaging periods, or

  9  other statistical conventions which yield reliable data; are

10  consistent with the emissions limit being measured; are

11  representative of the unit's actual performance; and are

12  sufficient to show the actual emissions of the unit.

13         (e)  Each facility authorized to operate under this

14  section shall submit annual operating reports in accordance

15  with department rules.

16         (f)  Each facility shall have a responsible official

17  provide and certify the annual and semiannual statements of

18  compliance required under the department's Title V permitting

19  rules.

20         (g)  Each facility shall have a responsible official

21  provide the department with sufficient information to

22  determine compliance with all provisions of this section and

23  all applicable department rules, upon request of the

24  department.

25         (h)  Records sufficient to demonstrate compliance with

26  all provisions of this section and all applicable department

27  rules shall be made available and maintained at the facility

28  for a period of 5 years, for inspection by the department

29  during normal business hours.

30         (i)  Emission sources subject to limitations for

31  particulate matter, nitrogen oxides, and visible emissions

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  1  pursuant to paragraphs (2)(e)-(g) shall test emissions

  2  annually, except as provided in subparagraphs 1.-4., in

  3  accordance with department rules using United States

  4  Environmental Protection Agency test methods or other test

  5  methods specified by department rule.

  6         1.  Tests for particulate matter of 10 microns or less

  7  may be conducted using United States Environmental Protection

  8  Agency Method 5, provided that all measured particulate matter

  9  is assumed to be particulate matter of 10 microns or less.

10  Tests for compliance with the particulate matter emission

11  limit of subparagraph (2)(e)2. for the pellet cooler or

12  cooling reel are waived as long as the facility complies with

13  the visible emissions limitation of subparagraph (2)(g)2. If

14  any visible emissions test for the pellet cooler or cooling

15  reel does not demonstrate compliance with the visible

16  emissions limitation of subparagraph (2)(g)2., the emissions

17  unit shall be tested for compliance with the particulate

18  matter emission limit of subparagraph (2)(e)2. within 30 days

19  after the visible emissions test.

20         2.  Tests for visible emissions shall be conducted

21  using United States Environmental Protection Agency Method 9.

22  Annual tests for visible emissions are not required for biogas

23  flares, emergency generators, and volatile organic compounds

24  emission control incinerators.

25         3.  Tests for nitrogen oxides shall be conducted using

26  Environmental Protection Agency Method 7E.

27         4.  Tests for particulate matter of 10 microns or less

28  for process steam boilers, combustion turbines, and duct

29  burners, and tests for nitrogen oxides for citrus peel dryers,

30  process steam boilers, and duct burners, are not required

31

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  1  while firing fuel oil in any calendar year in which these

  2  sources did not fire fuel oil for more than 400 hours.

  3         (j)  Measurement of the sulfur content of fuel oil

  4  shall be by latest American Society for Testing and Materials

  5  methods suitable for determining sulfur content. Sulfur

  6  dioxide emissions shall be determined by material balance

  7  using the sulfur content and amount of the fuel or fuels fired

  8  in each emission source, assuming that for each pound of

  9  sulfur in the fuel fired, two pounds of sulfur dioxide are

10  emitted.

11         (k)  A situation arising from sudden and unforeseeable

12  events beyond the control of the source which causes a

13  technology-based emissions limitation to be exceeded because

14  of unavoidable increases in emissions attributable to the

15  situation and which requires immediate corrective action to

16  restore normal operation shall be an affirmative defense to an

17  enforcement action in accordance with the provisions and

18  requirements of 40 CFR 70.6(g)(2) and (3), hereby adopted and

19  incorporated by reference as the law of this state. It shall

20  not be a defense for a permittee in an enforcement action that

21  maintaining compliance with any permit condition would

22  necessitate halting of or reduction of the source activity.

23         (4)  EMISSIONS TRADING.--If the facility is limited by

24  the emission limit listed in paragraph (2)(c) for any such

25  limit which the facility exceeded during the calendar year,

26  the facility must obtain, no later than March 1 of the

27  reporting year, sufficient allowances, generated in the same

28  calendar year in which the limit was exceeded, to meet all

29  limits exceeded.  Any facility which fails to meet the limit

30  and fails to secure sufficient allowances that equal or exceed

31  the emissions resulting from such failure to meet the limit

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  1  shall be subject to enforcement in the same manner and to the

  2  same extent as if the facility had violated a permit

  3  condition. For purposes of this section, an "allowance" means

  4  a credit equal to emissions of 1 ton per year of a pollutant

  5  listed in paragraph (2)(c), subject to the particular

  6  limitations of paragraphs (a) and (b).

  7         (a)  Emissions allowances may be obtained from any

  8  other facility authorized to operate under this section,

  9  provided such allowances are real, excess, and are not

10  resulting from the shutdown of an emissions unit. Emissions

11  allowances must be obtained for each pollutant the emissions

12  limit of which was exceeded in the calendar year. Allowances

13  can be applied on a pollutant-specific basis only.  No

14  cross-pollutant trading shall be allowed.

15         1.  Real allowances are those created by the difference

16  between the emissions limit imposed by this section and the

17  lower emissions actually measured during the calendar year.

18  Measurement of emissions for allowance purposes shall be

19  determined in the manner described in this subparagraph. For

20  purposes of measuring whether an allowance was created, a

21  single stack test or use of emissions estimates cannot be

22  used. Measurement of recovery of oil from citrus fruits

23  processed shall be by material balance using the measured oil

24  in the incoming fruit, divided into the sum of the oil

25  remaining in juice, the cold press oil recovered, d-limonene

26  recovered, and oil remaining in the dried pellets, expressed

27  as a percentage. Alternatively, the material balance may use

28  the measured oil in the incoming fruit divided into the oil

29  measured remaining in the pressed peel prior to introduction

30  into the feed mill dryers, in which case the decimal result

31  shall be subtracted from the numeral one, and added to the

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  1  decimal result of the measured oil in the incoming fruit

  2  divided into the oil measured remaining in the dried pellets,

  3  with the resulting sum expressed as a percentage. Measurement

  4  of recovery of oil shall be made each operational day and

  5  averaged over the days of facility operation during each

  6  calendar year. Facilities may accept wet peel from offsite

  7  sources for drying, provided that the facility receives

  8  sufficient recorded information from the offsite source to

  9  measure available oil and oil recovery at the offsite source,

10  and accounts for those values in determining compliance with

11  the limitation of paragraph (2)(c) and the number of

12  allowances that are required to be obtained, if any. Wet peel

13  not processed through the peel dryer shall be excluded from

14  the oil recovery calculations. Methodologies for determining

15  oil contents shall be developed by the Institute of Food and

16  Agricultural Sciences and approved by rule of the department.

17  Other methods of measuring oil recovery or determining oil

18  content may be approved by rule of the department, for trading

19  purposes, provided the methods yield results equivalent to the

20  approved methodologies.

21         2.  Excess allowances are those not used for any other

22  regulatory purpose.

23         (b)  No facility located in an area designated

24  nonattainment for ozone shall be allowed to acquire allowances

25  of volatile organic compounds. Nothing shall preclude such a

26  facility from trading volatile organic compounds allowances

27  that it might generate to facilities not located in a

28  nonattainment area for ozone.

29         (5)  EMISSIONS FEES.--All facilities authorized to

30  operate under this section shall pay annual emissions fees in

31  the same amount to which the facility would be subject under

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  1  the department's Title V program. For purposes of determining

  2  fees until October 31, 2002, emission fees shall be based on

  3  the requirements of s. 403.0872. Commencing July 1, 2002, the

  4  allowable annual emissions for fee purposes shall be computed

  5  as the emissions limits established by this section multiplied

  6  by the actual operation rates, heat input, and hours of

  7  operation of each new and existing source for the previous

  8  calendar year. Actual operation rates, heat input, and hours

  9  of operation of each new and existing source shall be

10  documented by making and maintaining records of operation of

11  each source. Fees shall not be based on stack test results. In

12  the event that adequate records of actual operation rates and

13  heat input are not maintained, actual operation shall be

14  assumed to occur at the source's maximum capacity during hours

15  of actual operation, if adequately documented. In the event

16  that adequate records of hours of operation are not

17  maintained, the source shall be assumed to have operated from

18  January 1 through May 31 and October 1 through December 31 of

19  the previous calendar year. All such annual emissions fees

20  shall be due and payable April 1 for the preceding calendar

21  year. Failure to pay fees shall result in penalties and

22  interest in the same manner and to the same extent as failure

23  to pay fees under the department's Title V program. For

24  purposes of determining actual emissions for fee purposes, any

25  allowances traded away shall be deducted and any allowances

26  acquired shall be included. All fees shall be deposited into

27  the Air Pollution Control Trust Fund.

28         (6)  MODIFICATIONS AND NEW CONSTRUCTION.--Any facility

29  authorized to operate under this section that makes any

30  physical change or any change to the method of operation of

31  the facility shall comply with the requirements of this

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  1  section at all times, except that any facility located in an

  2  area designated as a nonattainment area for any pollutant

  3  shall also comply with limits established by department rules

  4  for all changes which increase emissions of such pollutant,

  5  and except that any facility that becomes subject to the

  6  federal acid rain program is no longer authorized to construct

  7  or operate under this section and must obtain proper

  8  department permits.

  9         (7)  RULES.--The department shall adopt rules pursuant

10  to ss. 120.54 and 120.536(1) to implement the provisions of

11  this section. Such rules shall, to the maximum extent

12  practicable, assure compliance with substantive federal Clean

13  Air Act requirements.

14         (8)  LEGISLATIVE REVIEW.--By March 2004, the

15  department, after consultation with the citrus industry, shall

16  report to the Legislature concerning the implementation of

17  this section, and shall make recommendations for any changes

18  necessary to improve implementation.

19         (9)  ENVIRONMENTAL PROTECTION AGENCY APPROVAL.--No

20  later than October 1, 2000, the department shall submit this

21  act to the United States Environmental Protection Agency as a

22  revision of Florida's state implementation plan and as a

23  revision of Florida's approved state Title V program.  If the

24  United States Environmental Protection Agency fails to approve

25  this act as a revision of Florida's state implementation plan

26  within 2 years after submittal, this act shall not apply with

27  respect to construction requirements for facilities subject to

28  regulation under the act, and the facilities subject to

29  regulation thereunder must comply with all construction

30  permitting requirements, including those for prevention of

31  significant deterioration, and must make application for

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  1  construction permits for any construction or modification at

  2  the facility which was not undertaken in compliance with all

  3  permitting requirements of the Florida state implementation

  4  plan, within 3 months thereafter.  If the United States

  5  Environmental Protection Agency fails to approve this act as a

  6  revision of Florida's approved state Title V program within 2

  7  years after submittal, this act shall not apply with respect

  8  to operation requirements, and all facilities subject to

  9  regulation under the act must immediately comply with all

10  Title V program requirements and must make application for

11  Title V operation permits within 3 months thereafter.

12         Section 2.  Subsection (16) is added to section 120.80,

13  Florida Statutes, to read:

14         120.80  Exceptions and special requirements;

15  agencies.--

16         (16)  DEPARTMENT OF ENVIRONMENTAL

17  PROTECTION.--Notwithstanding the provisions of s.

18  120.54(1)(d), the Department of Environmental Protection, in

19  undertaking rulemaking to establish best available control

20  technology, lowest achievable emissions rate, or case-by-case

21  maximum available control technology for purposes of s.

22  403.08725, shall not adopt the lowest regulatory cost

23  alternative if such adoption would prevent the agency from

24  implementing federal requirements.

25         Section 3.  The Department of Environmental Protection

26  is directed to explore alternatives to traditional methods of

27  regulatory permitting, provided that such alternative methods

28  will not allow a material increase in pollution emissions or

29  discharges.  Working with industry, business associations,

30  other government agencies, and interested parties, the

31  department is directed to consider specific limited pilot

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  1  projects to test new compliance measures.  These measures

  2  should include, but not be limited to, reducing transaction

  3  costs for business and government and providing economic

  4  incentives for emissions reductions.  The department shall

  5  report to the Legislature prior to implementation of a pilot

  6  project initiated pursuant to this section.

  7         Section 4.  The introductory paragraph of section

  8  403.0872, Florida Statutes, is amended to read:

  9         403.0872  Operation permits for major sources of air

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

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

12  received from the United States Environmental Protection

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

14  pollution, including electrical power plants certified under

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

16  permit for a major source of air pollution under this section.

17  This operation permit, which is the only department operation

18  permit for a major source of air pollution required for such

19  source; provided, at the applicant's request, the department

20  shall issue a separate Acid Rain permit for a major source of

21  air pollution that is an affected source within the meaning of

22  42 U.S.C. s. 7651a(1). Operation permits for major sources of

23  air pollution, except general permits issued pursuant to s.

24  403.814, must be issued in accordance with the following

25  procedures contained in this section and in accordance with

26  chapter 120; however, to the extent that chapter 120 is

27  inconsistent with the provisions of this section, the

28  procedures contained in this section prevail.:

29         Section 5.  This act shall take effect July 1, 2000.

30

31

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