Overview ofAir Permitting Fees

In Illinois

Laurel L. KroackChief, Bureau of Air

Illinois EPA

laurel.kroack@illinois.gov(217) 785-4140

October 5, 2011

Overview of Air Permitting Fees

Annual site fees for permitted sources

Construction Permit Application fees

Provisions for “portable emissions units” – no fee for each move of a permitted unit

(Portion of) Sales Tax Revenue on “Sorbents”

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“NEW” Illinois Permit Fees

Public Act 97-0095, signed July 12, 2011

Fee for ROSS (i.e., Registration program)

Operating (Site) Fee Increases

Fee for Expedited Permits

Divert Portion of Sales Tax Revenue on Sorbents

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Registration of Smaller Sources (ROSS)

Annual fee: $235

Not required to obtain CAAPP or FESOP permit ; < 5 tpy (actual) combined criteria pollutants; < 0.5 tpy (actual) combined HAPs; < 0.05 tpy (actual) lead and mercury emissions; May NOT have an emission unit subject to a NESHAP

(excluding Area Source NESHAP) Re-registration each year Results in loss of fee revenue, but expect to save on

personnel costs

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Expedited Permits - Discretionary

4x standard construction permit fee, not to exceed $100,000

4x recurring permit fees (annual fees, operating

fees, or discharge fees), for each recurring permit expedited

Where no standard permit fee is required, expedited permit fee is negotiated

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Expedited Permits, cont.

All expedited permit fees are in addition to required standard permit fees

Expedited permit review time period is negotiated

Negotiated refund of fee on prorated basis - If Illinois EPA fails to complete review within agreed-to time period

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PERMIT FEE INCREASEBeginning January 1, 2012

Clean Air Act Permit Program (CAAPP or Title V) Permits From $18/ton to $21.50/ton Maximum fee from $250,000 to $294,000 “Fee Allowable” – Permittee sets, > actual, not

to exceed permit allowable

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PERMIT FEE INCREASEBeginning January 1, 2012

Federally Enforceable State Operating Permit or FESOP Minimum (< 25 tpy): From $200 to $235 25 -100 tpy sources: From $1,800 to $2,150 Maximum (> 100 tpy): From $3,500 to $4,112

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PERMIT FEE INCREASEBeginning January 1, 2012

Lifetime Operating Permit Minimum (< 25 tpy): From $200 to $235 25 -100 tpy sources: From $1,800 to $2,150 Maximum (> 100 tpy): From $3,500 to $4,112

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PERMIT FEE INCREASEBeginning January 1, 2012

Additional Revenue from all 3 permit categories is expected to be $1 - $3.2 million per year

NOTE: If a source operates without a permit after June 30, 2003, the Illinois EPA may recover 2x the site fees that were “avoided” – in addition to other enforcement penalties

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Sales Tax Revenue

Divert Portion of Sales Tax from “Sorbent” Sales Beginning July 1, 2011 “Sorbents” used to comply with Illinois Environmental

Protection Act or federal Clean Air Act 80% of the net sales tax revenue to CAAPP (Title V)

Permit Fund 6.25% general sales tax rate Total payment shall not exceed $2,000,000 in any

fiscal year Industry’s idea !

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Construction Permit Fees

Detailed fee schedules: Based on amount of effort required to process an application.

Single fee schedule for CAAPP (Title V) and FESOP sources

Separate fee schedule for smaller sources

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Construction Permit FeesConstruction Permit FeesCAAPP & FESOP SourcesCAAPP & FESOP Sources

New emission units:New emission units: $4k for first new emission unit$4k for first new emission unit $1k for each addt’l emission unit$1k for each addt’l emission unit BUT, not to exceed $10kBUT, not to exceed $10k

Modified emission units:Modified emission units: $2k for first modified unit$2k for first modified unit $1k for each addt’l modified unit$1k for each addt’l modified unit

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Construction Permit Fees Construction Permit Fees Not Currently - But Will Be - Subject to Not Currently - But Will Be - Subject to

CAAPP or FESOPCAAPP or FESOP

$5k Entry Fee$5k Entry Fee $25k Fee IF new unit is:$25k Fee IF new unit is:

Subject to Local Siting (waste facilities)Subject to Local Siting (waste facilities) Commercial IncineratorCommercial Incinerator Municipal Waste or Tire IncineratorMunicipal Waste or Tire Incinerator Commercial Power GeneratorCommercial Power Generator Designated by IEPA as a “Complex” source Designated by IEPA as a “Complex” source

via rulemakingvia rulemaking

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Construction Permit Fees Construction Permit Fees CAAPP & FESOP SourcesCAAPP & FESOP Sources

$3k per pollutant for each of:$3k per pollutant for each of: Netting ExerciseNetting Exercise Other PSD avoidanceOther PSD avoidance Nonattainment NSR Nonattainment NSR

New Sources:New Sources: $12k if subject to PSD$12k if subject to PSD $20k if subject to Nonattainment NSR $20k if subject to Nonattainment NSR

(NA-NSR)(NA-NSR)

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Construction Permit FeesConstruction Permit Fees CAAPP & FESOP SourcesCAAPP & FESOP Sources

$6k for a Major Mod. subject to PSD$6k for a Major Mod. subject to PSD $12k for a Major Mod. subject to NA-NSR$12k for a Major Mod. subject to NA-NSR $5k per unit if MACT Determination Req’d $5k per unit if MACT Determination Req’d

andand project is NOT subject to BACT or project is NOT subject to BACT or LAERLAER

$10k if Public Hearing is Held$10k if Public Hearing is Held

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Construction Permit Fees Construction Permit Fees Source Is Not & Will Not Be Subject toSource Is Not & Will Not Be Subject to

CAAPP or FESOP ProgramCAAPP or FESOP Program

$500 Entry Fee if a New Source, i.e., no $500 Entry Fee if a New Source, i.e., no Operating Permit issuedOperating Permit issued

$15k Fee IF new unit is:$15k Fee IF new unit is: Subject to Local Siting (waste facilities)Subject to Local Siting (waste facilities) Commercial IncineratorCommercial Incinerator Municipal Waste or Tire IncineratorMunicipal Waste or Tire Incinerator Commercial Power GeneratorCommercial Power Generator Designated by IEPA as a “Complex” source via Designated by IEPA as a “Complex” source via

rulemakingrulemaking

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Construction Permit Fees Construction Permit Fees Source Is Not & Will Not Be Subject to Source Is Not & Will Not Be Subject to

CAAPP or FESOP ProgramCAAPP or FESOP Program

$500 for Single New Unit$500 for Single New Unit $1k for >one New Unit$1k for >one New Unit $500 for 1 - 2 Modified Units$500 for 1 - 2 Modified Units $1k for > 2 Modified Units$1k for > 2 Modified Units $10k if Public Hearing is Held$10k if Public Hearing is Held

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Fee Process For Construction

Permit Applications Fee Estimate (Form 197-FEE) must be included

with application Payment, as estimated on Form 197-FEE, must be

included with application (check or money order, no cash)

May reject applications if 197-FEE form or the $$$ is not submitted with the application

May revoke issued construction permit if fee unpaid

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“Exceptions” For ConstructionPermit Application Fees

$500 filing fee (only) for certain simple projects at a permitted source: Proposed remediation project; New control device; Requested administrative change to an issued

construction permit; or Renewal of previously issued Construction Permit.

No fee for a “timely” (filed within permit appeal period) request to correct IEPA error in permit

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