ARC 3622C

ARC 3622C

ENVIRONMENTAL PROTECTION COMMISSION[567]

Notice of Intended Action

Proposing rule making related to fee amounts and adjustment process

and providing an opportunity for public comment

The Environmental Protection Commission (Commission) hereby proposes to amend Chapter 30, "Fees," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is proposed under the authority provided in Iowa Code sections 455B.133(8) and 455B.133C.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code sections 455B.133(8) and 455B.133C.

Purpose and Summary

The Commission is proposing to amend existing rules to increase the fee and dollar cap for asbestos notifications, to rescind an exemption to the asbestos notification fee to address confusion about whether a fee is required, and to provide a process for the Department of Natural Resources (Department) to request that the Commission adjust fees at any time during a fiscal year if the Department determines that established fees are projected to be insufficient to maintain all or part of any air quality program that is subject to fees specified in Chapter 30.

The Department established the 2017 Air Quality Program Funding Work Group and asked for participants by sending a LISTSERV message to over 7,000 members. The Department met with workgroup members in June and July 2017 to discuss projected expenses for FY 2017-2022, program elements, and anticipated revenues. The list of stakeholders who participated in the meetings is available from the Department upon request. The stakeholders recommended increased funding for the asbestos program to allow the Department to have sufficient staffing to provide oversight of proper asbestos removal and disposal and to provide additional education and outreach regarding asbestos removal for demolition and renovation projects conducted by cities, counties, schools, contractors, and others. The full list of recommendations can be found at www.iowadnr.gov/Environmental-Protection/Air-Quality/Stakeholder-Involvement, under Workgroups and Air Quality Program Funding Workgroup.

The proposed amendments will make the following changes to Chapter 30:

1.Provide clarification regarding when a fee is required for an asbestos notification.

2.Increase the fee and dollar cap on asbestos notifications.

3.Provide a process for the Department to request that the Commission adjust one or more fees at any time during a fiscal year if the Department determines that established fees are projected to be insufficient to maintain all or part of any air quality program that is subject to fees specified in Chapter 30.

The Commission intends to file these amendments as an Adopted and Filed Emergency After Notice rule making, to become effective on March 21, 2018, pursuant to Iowa Code section 17A.5(2)"b"(1)(b), after providing an opportunity for public comment and holding public hearings. The normal effective date should be waived and the amendments should be made effective upon filing, as the amendments confer a benefit on economic development for regulated entities by providing the Department the financial means to provide quality environmental services to Iowa business, while protecting the citizens of Iowa.

The proposed amendments are as follows:

Item 1 amends rule 567—30.3(455B) to remove an exemption to clarify the rule.

Item 2 amends rule 567—30.6(455B) to increase the dollar cap on asbestos notifications. This item also allows the Department to request a midyear fee adjustment from the Commission.

Fiscal Impact

This rule making has no fiscal impact to the Department. Overall, the Department has determined that most of the proposed changes will have a neutral fiscal impact on affected facilities. The fiscal impact will depend on the quantity of notifications an industry submits. State agencies, counties and other local governments will be required to submit notification fees for asbestos removal; the fiscal impacts to these agencies and local governments will be similar to the fiscal impacts to other persons affected by the proposed changes. A copy of the impact statement is available upon request from the Department.

Jobs Impact

After analysis and review of this rule making, the Department has determined that the proposed rule making will have a neutral impact on private sector jobs. An increased asbestos fee will allow the Department to establish sufficient staffing to provide oversight of proper asbestos removal and disposal for demolition and renovation projects conducted by cities, counties, schools, contractors, and others. Community development and renovation plans will proceed as planned, and public asbestos exposure will be reduced. In some cases, job opportunities may increase as new businesses are attracted to the revitalized community areas. A copy of the impact statement is available upon request from the Department.

Waivers

This rule is subject to the waiver provisions of 561—Chapter 10. Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any.

Public Comment

Any interested person may submit written suggestions or comments concerning this proposed rule making. Written suggestions or comments in response to this rule making must be received by the Department no later than 4:30 p.m. on March 6, 2018. Comments should be directed to:

Public Hearing

A public hearing at which persons may present their views orally or in writing will be held. Upon arrival, attendees should proceed to the fourth floor to check in at the Department reception desk to sign in and be directed to the appropriate hearing location:

Persons who wish to make oral comments at the public hearing will be asked to state their names for the record and to confine their remarks to the subject of this proposed rule making.

Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs by calling 515.725.9570.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rule-making actions are proposed:

Item 1. Amend rule 567—30.3(455B) as follows:

567—30.3(455B) Fees associated with asbestos demolition or renovation notification.

30.3(1) Payment of fees established. Beginning on January 15, 2016, the owner or operator of a site subject to the national emission standard for hazardous air pollutants (NESHAP) for asbestos notifications, adopted by reference in 567—paragraph 23.1(3)"a," shall submit a fee with each required original or each annual notification for each demolition or renovation, including abatement. Fees shall be paid as specified in the fee schedule approved by the commission and posted on the department's Web site website. Fees shall be submitted with the notification forms provided by the department.

30.3(2) Fee not required. A fee shall not be required for the following:

a. Notifications when the total amount of asbestos to be removed or disturbed is less than 260 linear feet, less than 160 square feet, and less than 35 cubic feet of facility components and is below the reporting thresholds as defined in 40 CFR 61.145 as amended on January 16, 1991;

b. Notifications of training fires as required in 567—paragraph 23.2(3)"g";

c. Controlled burning of demolished buildings as required in 567—paragraph 23.2(3)"j";

d. Revised, canceled, and courtesy notifications. A revision to a previously submitted courtesy notification due to applicability of the notification requirements in 567—paragraph 23.1(3)"a" is considered an original notification and is subject to the fee requirements of subrule 30.3(1).

Item 2. Amend rule 567—30.6(455B) as follows:

567—30.6(455B) Process to establish or adjust fees and notification of fee rates.

30.6(1) Setting the fees. Beginning on January 15, 2016, fees shall be paid as specified in the fee schedule approved by the commission and posted on the department's Web site website. Following the setting of the fee schedule effective January 15, 2016, the department shall submit the proposed budget and fees for major and minor source construction permit programs, the Title V operating permit program, and the asbestos NESHAP program for the following fiscal year to the commission no later than the March commission meeting of each year, at which time the proposal will be available for public comment until such time as the commission acts on the proposal or until the May commission meeting, whichever occurs first. The department's calculated estimate for each fee shall not produce total revenues in excess of limits specified in Iowa Code sections 455B.133B and 455B.133C during any fiscal year. If an established fee amount must be adjusted, the commission shall set the fees no later than the May commission meeting of each year.

Fees established prior to January 15, 2016, shall become effective on January 15, 2016. In subsequent years, adjusted or established fees shall become effective on July 1 or as determined by the commission pursuant to subrule 30.6(4). A fee not adjusted by the commission shall remain in effect as previously established until the fee is adjusted by the commission.

30.6(2) Fee types and dollar caps on fee types. The commission may set fees for the fee types and activities specified in this subrule and shall not set a fee in the fee schedule higher than the levels specified in this subrule without adopting the change pursuant to formal rule making:

a. New source review applications from major sources, which may include:

(1)Review of each application for a construction permit: $115 per hour;

(2)Review of each application for a prevention of significant deterioration permit: $115 per hour;

(3)Review of each plantwide applicability limit request, renewal, or reopening: $115 per hour;

(4)Review of each regulatory applicability determination: $115 per hour; and

(5)Air quality modeling review: $90 per hour, which may include:

1.Reviewing air quality modeling for construction permit application submittal; prevention of significant deterioration application submittal; and nonattainment new source review project application submittal; and

2.Conducting air quality modeling for construction permit application submittal.

b. New source review applications from minor sources, which may include:

(1)Each application for a construction permit: $385;

(2)Each application for a registration permit: $100;

(3)Each application for a permit by rule: $100; and

(4)Each application for a permit template: $100.

c. Asbestos notifications: $100 $200.

d. Review of each initial or renewal Title V operating permit application: $100 per hour.

e. Title V annual emissions: $70 per ton.

30.6(3) Notification of fee schedule. Following the initial setting of any fee by the commission, the department shall make available to the public a fee schedule at least 30 days prior to its effective date. If any established fee amount is adjusted, the department shall make available to the public a revised fee schedule at least 30 days prior to its effective date. The fee schedule shall be posted on the department's Web site website.

30.6(4) Midyear fee adjustments. The department may request that the commission adjust one or more fees at any time during a fiscal year if the department determines that established fees are projected to be insufficient to maintain all or part of any air quality program that is subject to fees specified in this chapter. The department shall submit the revised fee, budget, and fee schedule to the commission at which time the proposal will be available for public comment until such time as the commission acts on the proposal. The department's calculated estimate for each fee shall not produce total revenues during any fiscal year in excess of amounts specified in Iowa Code sections 455B.133B and 455B.133C. The provisions of subrule 30.6(3) shall be applicable to actions taken by the commission pursuant to this subrule.