Air emission fees assessed under the Natural Resources and Environmental Protection Act (NREPA) increaseD by approximately 35 percent under Public Act 245, signed into law by Governor John Engler in July, 1998. The fee revisions, which result from a workgroup organized by the Michigan Department of Environmental Quality (MDEQ) and including industry representatives, are intended to increase revenues generated by the air emission fees in order to cover all of MDEQ's expenses associated with the Title V renewable operating permit (ROP) program required by the federal Clean Air Act.
The amendments to NREPA clarify that emission charges apply only to emissions of PM10, and not to total particulates but does not change provisions that impose emission fees on certain sources that are not subject to ROP requirements, such as sources subject to new source performance standards (NSPS). For example, as under the prior law, a source that is subject to an NSPS, but not to ROP requirements, is a "Category II" source. Category II sources were previously required to pay a $1,000 annual facility charge plus $25 per ton of fee-subject air pollutants emitted during a year. Under these amendments, the annual facility charge for Category II sources is increased to $1,350 and the emission charge is increased to $34 per ton emitted.
The amendments also extend the time for facility owners to challenge their fee assessments from 30 days to 45 days after the mailing date of the air quality fee notification from MDEQ. Other provisions increase the amount of information about emission fee collection and expenditures that MDEQ must provide to the governor and the Legislature each year and eliminate certain interim provisions that have expired.
The amendments also revise NREPA Section 5523 regarding delegations of authority to counties to issue state air permits and administer and enforce state air statutes and regulations, the Clean Air Act, and the state implementation plan. Under the revised Section 5523, the delegation must be in the form of a written contract between MDEQ and the county that describes the activities that the county shall perform, provides for the delegated program to be consistent with implementation of the state's air program, using state procedures, forms, and databases, and provides for ongoing communication between the county and the state to assure consistency.
This article was prepared by S. Lee Johnson, a partner in our Environmental Department, and previously appeared in the July, 1998 edition of the Michigan Environmental Compliance Update, a monthly newsletter prepared by the Environmental Department and published by M. Lee Smith Publishers.