fee review and discussion macc meeting · 7/8/2020 · fees adjusted based on 2014/2015 fee...

Fee Review and DiscussionMACC MeetingJuly 8, 2020

- MISSOURI

llm DEPARTMENT OF NATURAL RESOURCES

• Background• Overview• Average Annual Shortfall Projection• Air Program Fee Recommendation• Timeline

Agenda

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Air Program and fee authority:• Missouri Air Conservation Law, 643.079 RSMo

‘… the DNR may review fees and propose changes after holding stakeholder meetings…’

‘… the DNR shall submit a proposed fee structure with stakeholder agreement to the air conservation commission…’

Background

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Fees adjusted based on 2014/2015 Fee Stakeholder discussions:

• Emission Fee – $48/ton (increased from $40), effective 2016

• Permit Fees – effective 2017• $75 per hour for construction permit review

(increased from $50)• New tiered approach for operating permit • New filing fees for construction permits and

portable plants• Asbestos Fees – effective 2017• GVIP Fees – unchanged

Background

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$43 75

- $5 03 $ 8.88

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Background

• Meetings:• March 2 – in-person and

virtual kickoff• April 6 - virtual• May 5 – virtual• May 28 – virtual

Averaged nearly 50 attendees each meeting

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Background

• All fee stakeholder items posted:

https://dnr.mo.gov/env/apcp/airadvisory/index.html

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Bi MISSOURI

II DEPARTMENT OF NATURAL RESOURCES

MO.gov GcM,morParsoo Rndan/Jqency On&ne 5ervices Sea.-d,

M MIEI Pcograms • Focms and Pecmits Publications Laws and Regulations Onlme SeIV1ces Calendac of Events

Air Program Advisory Forum

What is the Air Program Advisory Forum? The Air Program Aclvisory Forum consists of people in industry, consulting, regulatory agencies

and eJ1vironmeJ1tal groups who want to exd,ange information regarding air quality. The forum

~ Get UpdatH ~ onthl~ --,,,- lnue

helps maintain open communication as well as identify, evaluate and develop ways to l,etter protect human health and

the environment. Anyone with an interffit in air quality may participate.

Upcoming Meetings Notice: The health and safety of all visitors to state office buildings are a priority. Due to recent oonoems regarding novel comonavirus, or COVID-19, we encourage remote parti,cipation at meetings. The

department will livestream tlhe meeting a,t MoDl'tR-TV. Participants can use the diat feature of this

platform to ask questions or comments and relaying those to the group. The department will also make a call-in number available for the meeting.

May 28 - 1 p.m.

Call in number: 866-289-6713 - Note: If you call in you must mute the speakers on your computer to avoid audio

feedback. Watdi the Livestream on '1oDNR-TV

June (tentative}

Email bulletins

The air program regularly sends email bulletins about red tape reduction. Subject matter indude:s rules and amendments on which the public may comment as well as upcoming public hea,rings and votes during meeting,s of the Missouri Air

Conservation Commission. Sul,scribers to the topic "Air Puolic Notices" regularly receive these notices. d ick on the aoove

envelope to sign up for emails. Click to review your subscription and update it, if necessary.

Forum and Stakeholder Meetings, 2014-2020

REGFORM Air Seminars, 2014-2018

Additional Links

Program Home Page

Air Conservation Commission

Air Pollutants

Air Program Advisory Forum

Air Quality

Asbestos

Forms and Appl ications

Gateway Vehicle Inspection Program

Laws and Regulations

Ozone

Permits

Publications and Reports

Public Notices-Comment Periods

QAPP Template

Air Pollution Compliance/ Regulatory

Assistance

Slate Plans aiad Boundary Designations

Vapor Recover, Information and Compliance Requirements

Volkswagen Trust

Contact Information

Air Poll'ution Control Program

P.O. Box 176

Jefferson City, MO 65102

800-361 ·'1827

573•751-'1817

Contact Us

Report an Environmental Conoem

'1eet the Air Pollution COfltrol Program

Director

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https://dnr.mo.gov/env/apcp/airadvisory/index.html

Background

• Anticipating an average annual shortfall of $2.9 million in Fiscal Year 2023 to 2027 using updated projections

• FY23 begins July 1, 2022• Any changes made to fees this year will be

collected starting Jan-Jun 2022

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What We’ve Done – Examples (1 of 3)Rule Changes:Removed Basic Operating permitsRemoved Open Burning permits Red Tape Reduction process eliminated rule

backlogMonitoring network savingsOutsourced filter weighing, remote quality checks,

discontinued sites and equipment, plan for equipment replacement, reduce sample frequency

Discontinued evaluation of certain federal area source rules

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What We’ve Done – Examples (2 of 3)

Shared lease of building will save rentContinue and expand electronic systemsScanning hardcopy reports Converting to electronic fileroomElectronic correspondence

Eliminated one copier and one printerMulti-function machines save under contract

General streamlining of workflows

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What We’ve Done – Examples (3 of 3)

Only essentials:Training costs, electronic options when

possibleOffice supplies“Core function duty” travel

Reduced spending on commission meetingsScrutinize every vacancy prior to filling

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These are some of the items we’ve done, and we’ll continue to look for

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Efficiencies at APCP

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125

120

115

110

105

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2002 2 . · 4 2006 2008 201 ·. 2 -12 2014 2016 2018 2 . 2 . 2022

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------------------------ NATURAL RESOURCES

Overview

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Ozo

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ntra

tion

Year

St. Louis

Kansas City

Rural

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Trends in Eight-hour Ozone Design Values St. Louis and Kansas City Areas and Rural Site (Mark Twain)

('EPA Quality assured data through October 2019)

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- st. Louis Area

ri1 MISSOURI 1997 eight-hour standard n l'j1 DEPARTW.ENT OF ISW NAJUAAI. RESOURCB

- Kansas City Area

- 2008 eight-hour standard

- Mark Twain State Park

- 2015 eight-hour standard

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Emission Fee: $40/ton Emission Fee: $48/ton

Chargeable Emissions and Fees Due

240,000

220,000

200,000

180,000

160,000

140,000

120,000

$9,000,000

$8,000,000

$5, 721,92~7 ,000,000 -------------;::o!!ll~ ~ ~ ................. c-

$6,000,000

140,040 $5,000,000

100,000 ------1 ----+l---+-1---+-I --+--1 ----+l---+-1---+-I --+--1 - $4,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

-Chargeable Emissions from Point Sources in Missouri - Emission Fees Due

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Goal for Fee Stakeholder Process: Long term funding viability

• While air quality continues to improve…fee revenues to operate program decrease

• We’ve reduced workload where we can, but it is not reducing proportionally.

• Still have Clean Air Act requirements to maintain delegation such as planning, monitoring, permitting

• We have projected for an increase in expenditures due to factors outside our control while limiting expenditures that are within our control.

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Average Annual Shortfall Projection

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$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27

Projected Revenues, Expenditures and Fund Balances(excludes GVIP and Asbestos)

Operating Expenditures RevenueActual Projected

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NOTE:Fiscal Year 2023 begins

July 1, 2022

-

Air Program Fee Recommendation

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•Amend the emission fee per ton•Increase from current $48 per ton to:

•$53 per ton for emission year 2021•$55 per ton for emission years 2022 and after

•Expected to move fiscal cliff from Fiscal Year 2023 to Fiscal Year 2025


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Continue discussions on fees•Need a long-term solution•Additional outreach and analysis•Base fee•Exempt sources•Emission cap•Permit fees•Mobile source surrogate


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Emissio1n Fee Rate

Emission Fee Rate 2020 $

Emission Fee Rate 202'1 $





Emission Fee Rate 2026, $


48.00

53.00

55.00

55.00

55.00

55.00

55.00

55.00

$14.iOOO, 000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

Pro Jected Revenues, Expenditures and Fund Ba llances

(exdudes Asbestos and GVIP, i11cludes ntle V, Non-fit l,e V and Federal)

IFY20 FY.21 FY2.2. FY23 FY24 FV25 FY26

~ Operating Ei,penditures - Revenue ....... Fund Balla lilce

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------------------------------------ NATURAL RESOURCES

Timeline

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• Step 1: Now. Move forward with initial fee increases by December 2020 (for fees payable by June 2022)

• Step 2: This fall/next spring. Continue Air Forum Fee Workgroup to continue fee work in 2020 and 2021

• Items for discussion:• Base/Filing Fee• Air program efficiencies/billing• Other sources of revenue

Timeline

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Timeline – Step 1 Initial Fee Increases

• Stakeholder Meetings • Present to MACC: July 8 & 10, 2020• Public Hearing: September 24, 2020• Adoption Vote: November 17-25, 2020

• Note: one special meeting• File by: December 1, 2020• Legislative Review: January-March 2021• Fees Collected by: June 1, 2022 (for

emission/calendar year 2021)

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Timeline – Step 1 Initial Fee Increases

• For any fee discussions today, July 2020, the fees will not be due for 2 years

• Today’s discussion would affect fees due by June 1, 2022

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2020 Su

5 12 19

19 26

6 13 20 27

Mo

6 13 20

7 14 21 28

January Tu we

1 7 8

Th Fr Sa 2 3 4 9 10 11

18 25

2 9 11 16 18 23 24 25 30 31

-1 2 3 4 5 8 9 10 11 12 15 16 17 18 19 22 23 24 25 26 29 30

November Su I Mo I Tu I We I Th I Fr I 5a 1 2 3 4 5 6 7 8 9 10 11 12 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

February Mo Tu We Th

2 3 5 6

August Su Mo Tu We Th

2 3 4 5 6 9 10 11 12 13

16 17 18 19 20 23 24 25 26 27 30 31

October

Fr

7

Fr

7 14 21 28

Sa 1 8

15 22

20 27

Sa 1 8

15 22 29

Su I Mo I Tu I We I Th I Fr I Sa 1 2 3

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

December Su Mo Tu We Th Fr Sa

1 2 3 4 5 6 7 8 9 10 11 12

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

2021 January

Su I Mo I Tu I we I Th I Fr I sa 1 2

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

March SU Mo Tu We Th Fr

1 2 3 4 5 10 12

1 2 5 6 7 8 9

12 13 14 15 16 18 19 20 21 22 23 25 26 27 28 29 30

November Su I Mo I Tu I We I Th I Fr I Sa

1 2 3 4 5 6 7 8 9 10 11 12 13

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

February Mo Tu We Th Fr Sa 1 2 3 4 5 6

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Sa 3

October Su I Mo I Tu I We I Th I Fr I Sa

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

December Su Mo Tu We Th Fr Sa

1 2 3 4 5 6 7 8 9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

2022 January February

Su I Mo I Tu l we I Th I f r I sa Mo Tu We Th Fr 1 1 2 3 4

2 3 4 5 6 7 8 6 7 8 9 10 11 10 11 12 13 14 15 13 14 15 16 17 18 17 18 19 20 21 22 20 21 22 23 24 25

23 24 25 26 27 28 29 27 28 30 31

March April Su I Mo I Tu I We I Th I Fr I Sa Su Mo Tu We Th Fr

1 2 3 4 5 1 6 7 8 9 10 11 12 3 4 5 6 7 8

13 14 15 16 17 18 19 10 11 12 13 14 15 20 21 22 23 24 25 26 17 18 19 20 21 22 27 28 29 30 31 24 25 26 27 28 29

11 18 25

Su Mo Tu 1

6 7 8 13 14 15 20 21 22 21 23 27 28 29 28 30

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Sa 5 12 19 26

Sa 2 9 16 23 30

10 17 24 31

Timeline – Step 2 Ongoing Workgroup

• Stakeholder Meetings:• Late 2020 to early 2021

• Present to MACC: spring 2021• File by: December 1, 2021• Legislative Review: 2023• Fees Collected by: June 1, 2023

(for emission/calendar year 2022)

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Darcy A. Bybee, DirectorAir Pollution Control Program1659 E. Elm StreetJefferson City, MO 65102(573) 751-7840(573) 751-7946 direct [email protected] toll-free (800) 361-4827

Questions?

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mailto:[email protected]

fee review and discussion macc meeting · 7/8/2020 · fees adjusted based on 2014/2015 fee...

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