At its November 7, 2013 public meeting, the Independent Regulatory Review Commission (IRRC) approved 5-0 the final rulemaking on Air Quality Title V Emission Fee Amendments submitted by the Pennsylvania Department of Environmental Protection’s (DEP) Bureau of Air Quality. The final rulemaking establishes a Title V annual emission fee paid by the owner or operator of a Title V facility of $85 per ton of each regulated pollutant for up to 4,000 tons for 2013 emissions, payable by September 1, 2014. This annual emission fee is an increase from the previous fee of $57.50 per ton for 2012 emissions of regulated pollutant. The Environmental Quality Board (EQB) had unanimously approved the final regulation at its September 17, 2013 meeting.
Vince Brisini, Deputy Secretary for DEP’s Office of Waste, Air, Radiation and Remediation spoke in support of the regulation. He explained the emissions fees must be adequate to cover the cost of the Title V program, but the fee schedule was established in 1994 and has been adjusted annually under the Clean Air Act. Brisini said the amendment raises the emissions fee to $85 per ton, which will provide an additional $5 million in revenue for the first year and $3.8 million the second year. He called the increase a bridge to a comprehensive revised fee program, saying it is only a temporary solution to the problem faced by DEP. Brisini said the $4,000 minimum per pollutant cap should be maintained because only nine facilities in Pennsylvania will be over the cap if it is raised and those facilities will have to shoulder the burden of all the Title V facilities in the Commonwealth.
Deputy Secretary Brisini indicated there has been a reduction in the Title V emission fee revenues in the amount of $3.8 million over the past five years. He attributes the decline to fewer emissions, plant closures, the influx of natural gas leading to curtailments and coal-to-gas conversions, and the fact that the emission fee has not been increased for many years. Deputy Secretary Brisini stated that the increase in the Title V annual emission fee is necessary to offset the projected deficits for DEP to administer the state’s Title V permit program. He noted that, of the 560 Title V facilities in the state, only two owners and operators of these facilities submitted comments opposing the fee increase. No comments were received from the other owners or operators of Title V facilities.
Deputy Brisini said approximately 13 coal-fired units retire per year on average and approximately 104 units have retired since 2000. There is a two-year window before another fee increase amendment will be needed. The increase to $85 per ton is the minimal amount needed now to meet DEP’s budget deficit. The consequence of not having adequate revenues to administer the Title V program is that EPA would run the program in Pennsylvania.
The regulation will be published in the Pennsylvania Bulletin as a final form regulation and will be submitted to the U.S. Environmental Protection Agency for approval as a revision to the State’s Implementation Plan and as an amendment to the Title V Program Approval.