HOUSE BILL No. 5094

 

August 17, 2005, Introduced by Reps. Kolb, Alma Smith, Tobocman and Byrum and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 5522 (MCL 324.5522), as amended by 2001 PA 49.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5522. (1) For the state fiscal year beginning October 1,

 

2001  2005, and continuing until September 30,  2005  2009, the

 

owner or operator of each fee-subject facility shall pay air

 

quality fees as required and calculated under this section. The

 

department may levy and collect an annual air quality fee from the

 

owner or operator of each fee-subject facility in this state. The

 

legislature intends that the fees required under this section meet

 

the minimum requirements of the clean air act and that this

 

expressly stated fee system serve as a limitation on the amount of

 


fees imposed under this part on the owners or operators of fee-

 

subject facilities in this state.

 

     (2) The annual air quality fee shall be calculated for each

 

fee-subject facility, according to the following procedure:

 

     (a) For category I facilities, the annual air quality fee

 

shall be the sum of a facility charge and an emissions charge as

 

specified in subdivision (e)  determined under subdivisions (e) and

 

(f). The facility charge shall be  $4,485.00  $5,605.00.

 

     (b) For category II facilities, the annual air quality fee

 

shall be the sum of a facility charge and an emissions charge as

 

specified in subdivision (e)  determined under subdivisions (e) and

 

(f). The facility charge shall be  $1,795.00  $2,245.00.

 

     (c) For category III facilities, the annual air quality fee

 

shall be  $250.00  $310.00.

 

     (d) For municipal electric generating facilities that are

 

category I facilities and that emit more than 450 tons but less

 

than 18,000 tons of fee-subject air pollutants, the annual air

 

quality fee shall be the following amount, based on the number of

 

tons of fee-subject air pollutants emitted:

 

     (i) More than 450 tons but less than 4,000 tons, $24,816.00.

 

     (ii) At least 4,000 tons but not more than 5,300 tons,

 

$24,816.00 plus  $45.25  the emission charge rate specified in

 

subdivision (f) per ton of fee-subject air pollutant in excess of

 

4,000 tons.

 

     (iii) More than 5,300 tons but not more than 12,000 tons,

 

$85,045.00.

 

     (iv) More than 12,000 tons but less than 18,000 tons,

 


$159,459.00.

 

     (e) The emissions charge for category I and category II

 

facilities shall equal the emission charge rate  of $45.25  

 

specified in subdivision (f), multiplied by the actual tons of fee-

 

subject air pollutants emitted. A pollutant that qualifies as a

 

fee-subject air pollutant under more than 1 class shall be charged

 

only once. The actual tons of fee-subject air pollutants emitted is

 

considered to be the sum of all fee-subject air pollutants emitted

 

at the fee-subject facility for the calendar year 2 years preceding

 

the year of billing, but not more than the lesser of the following:

 

     (i) 4,000 tons.

 

     (ii) 1,000 tons per pollutant, if the sum of all fee-subject

 

air pollutants except carbon monoxide emitted at the fee-subject

 

facility is less than 4,000 tons.

 

     (f) The emission charge rate is:

 

     (i) $41.00 for the state fiscal year beginning October 1, 2005.

 

     (ii) $51.75 for the state fiscal year beginning October 1,

 

2006.

 

     (iii) $63.55 for the state fiscal years beginning October 1,

 

2007 and October 1, 2008.

 

     (3) The auditor general shall conduct a biennial audit of the

 

federally mandated operating permit program required in title V.

 

The audit shall include the auditor general's recommendation

 

regarding the sufficiency of the fees required under subsection (2)

 

to meet the minimum requirements of the clean air act.

 

     (4) After January 1, but before January 15 of each year

 

beginning in 1995, the department shall notify the owner or

 


operator of each fee-subject facility of its assessed annual air

 

quality fee. Payment is due within 90 calendar days of the mailing

 

date of the air quality fee notification. If an assessed fee is

 

challenged under subsection (6), payment is due within 90 calendar

 

days of the mailing date of the air quality fee notification or

 

within 30 days of receipt of a revised fee or statement supporting

 

the original fee, whichever is later. The department shall deposit

 

all fees collected under this section to the credit of the fund.

 

Notwithstanding the requirements of this subsection, the department

 

may adjust the billing date and due date for category III dry

 

cleaning facilities that are also subject to the licensing or

 

certification requirements of section 13305 of the public health

 

code, 1978 PA 368, MCL 333.13305, and section 5i of the fire

 

prevention code, 1941 PA 207, MCL 29.5i, in order to combine fee

 

assessments.

 

     (5) If the owner or operator of a fee-subject facility fails

 

to submit the amount due within the time period specified in

 

subsection (4), the department shall assess the owner or operator a

 

penalty of 5% of the amount of the unpaid fee for each month that

 

the payment is overdue up to a maximum penalty of 25% of the total

 

fee owed.

 

     (6) If the owner or operator of a fee-subject facility desires

 

to challenge its assessed fee, the owner or operator shall submit

 

the challenge in writing to the department. The department shall

 

not process the challenge unless it is received by the department

 

within 45 calendar days of the mailing date of the air quality fee

 

notification described in subsection (4). A challenge shall

 


identify the facility and state the grounds upon which the

 

challenge is based. Within 30 calendar days of receipt of the

 

challenge, the department shall determine the validity of the

 

challenge and provide the owner with notification of a revised fee

 

or a statement setting forth the reason or reasons why the fee was

 

not revised. Payment of the challenged or revised fee is due within

 

the time frame described in subsection (4). If the owner or

 

operator of a facility desires to further challenge its assessed

 

fee, the owner or operator of the facility has an opportunity for a

 

contested case hearing as provided for under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (7) If requested by the department, by March 15 of each year,

 

or within 45 days of a request by the department, whichever is

 

later, the owner or operator of each fee-subject facility shall

 

submit information regarding the facility's previous year's

 

emissions to the department. The information shall be sufficient

 

for the department to calculate the facility's emissions for that

 

year and meet the requirements of  subpart Q of 40 C.F.R. part 51  

 

40 CFR 51.320 to 51.327.

 

     (8) By July 1 of each year, the department shall provide the

 

owner or operator of each fee-subject facility required to pay an

 

emission charge pursuant to this section with a copy of the

 

department's calculation of the facility emissions for the previous

 

year. Within 60 days of this notification, the owner or operator of

 

the facility may provide corrections to the department. The

 

department shall make a final determination of the emissions by

 

December 15 of that year. If the owner or operator disagrees with

 


the determination of the department, the owner or operator may

 

request a contested case hearing as provided for under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (9) By March 1 annually, the department shall prepare and

 

submit to the governor, the legislature, the  chair  chairpersons

 

of the standing  committee  committees of the senate and house of

 

representatives with primary responsibility for environmental

 

protection issues related to air quality, and the  chairs

 

chairpersons of the subcommittees of the senate and house

 

appropriations committees with primary responsibility for

 

appropriations to the department a report that details the

 

activities of the previous fiscal year funded by the fund for the

 

department. This report shall include, at a minimum, all of the

 

following as it relates to the department:

 

     (a) The number of full-time equated positions performing title

 

V and non-title V air quality enforcement, compliance, or

 

permitting activities.

 

     (b) All of the following information related to the permit to

 

install program authorized under section 5505:

 

     (i) The number of permit to install applications received by

 

the department.

 

     (ii) The number of permit to install applications for which a

 

final action was taken by the department. The number of final

 

actions should be reported as the number of applications approved,

 

the number of applications denied, and the number of applications

 

withdrawn by the applicant.

 


     (iii) The number of permits to install approved that were

 

required to complete public participation under section 5511(3)

 

before final action and the number of permits to install approved

 

that were not required to complete public participation under

 

section 5511(3) prior to final action.

 

     (iv) The average number of final permit actions per permit to

 

install reviewer full-time equivalent position.

 

     (v) The percentage and number of permit to install

 

applications which were reviewed for administrative completeness

 

within 10 days of receipt by the department.

 

     (vi) The percentage and number of permit to install

 

applications which were reviewed for technical completeness within

 

30 days of receipt of an administratively complete application by

 

the department.

 

     (vii) The percentage and number of permit to install

 

applications submitted to the department that were administratively

 

complete as received.

 

     (viii) The percentage and number of permit to install

 

applications for which a final action was taken by the department

 

within 60 days of receipt of a technically complete application for

 

those not required to complete public participation under section

 

5511(3) prior to final action, or within 120 days of receipt of a

 

technically complete application for those which are required to

 

complete public participation under section 5511(3) prior to final

 

action.

 

     (c) All of the following information for the renewable

 

operating permit program authorized under section 5506:

 


     (i) The number of renewable operating permit applications

 

received by the department.

 

     (ii) The number of renewable operating permit applications for

 

which a final action was taken by the department. The number of

 

final actions should be reported as the number of applications

 

approved, the number of applications denied, and the number of

 

applications withdrawn by the applicant.

 

     (iii) The percentage and number of permit applications initially

 

processed within the required time.

 

     (iv) The percentage and number of permit renewals and

 

modifications processed within the required time.

 

     (v) The number of permit applications reopened by the

 

department.

 

     (vi) The number of general permits issued by the department.

 

     (d) The number of letters of violation sent.

 

     (e) The amount of penalties collected from all consent orders

 

and judgments.

 

     (f) For each enforcement action that includes payment of a

 

penalty, a description of what corrective actions were required by

 

the enforcement action.

 

     (g) The number of inspections done on sources required to

 

obtain a permit under section 5506 and the number of inspections of

 

other sources.

 

     (h) The number of air pollution complaints received,

 

investigated, not resolved, and resolved by the department.

 

     (i) The number of contested case hearings and civil actions

 

initiated and completed, and the number of voluntary consent

 


orders, administrative penalty orders, and emergency orders entered

 

or issued, for sources required to obtain a permit under section

 

5506.

 

     (j) The amount of revenue in the fund at the end of the fiscal

 

year.

 

     (10)  The report under subsection (9) shall also include the

 

amount of revenue for programs under this part received during the

 

prior fiscal year from fees, from federal funds, and from general

 

fund appropriations. Each of these amounts shall be expressed as a

 

dollar amount and as a percent of the total annual cost of programs

 

under this part.

 

     (11) The attorney general may bring an action for the

 

collection of the fees imposed under this section.

 

     (12) This section does not apply if the administrator of the

 

United States environmental protection agency determines that the

 

department is not adequately administering or enforcing the

 

renewable operating permit program and the administrator

 

promulgates and administers a renewable operating permit program

 

for this state.