Petition No. P2006-10

LCB File No. R154-06

Nevada Administrative Code:

Description of Petition: Regulation R154-06: Air Pollution Control Permitting Fees: This regulation proposes to amend the fee structure in NAC 445B.327 to make the revenue generated more commensurate with the expense of administering the Division of Environmental Protection's air quality control program.

As way of background, the air pollution control program is predominantly a fee based program, receiving no general fund support. The operating permits program fees have not been significantly increased in ten years, whereas the size and scope of program responsibilities have markedly expanded. Furthermore, the Southern California Edison's Mohave Generating Station (Mohave), which was a significant source of revenue in the past, has shut down, and this has been compounded by a steady decline in federal grant funding from US. EPA. Accordingly, it is necessary to increase operating permit fees to pay the expenses of implementing the Division's air quality control program. The specific fee increases proposed in this regulation include the following elements.

The regulation would increase the application fee for a Class II general permit and a surface area disturbance from $400 to $500; and clarify that the first year's annual maintenance fee for a "new source" is included in the application fee.

For annual fees based on emissions, the regulation would increase the fee for Class I sources to $16 per ton for each regulated pollutant; repeal the fee for Class II sources, and add an inflationary adjustment factor of 2 percent compounded annually.

For annual fees based on maintenance, the regulation would increase the fee for all Class I sources, adding a tiered structure; adding a 4th tier to the Class II fee structure; increasing the fee from $250 to $500 for Class II sources with a potential to emit less than 25 tons per year; increasing the fee for surface area disturbances, (adding a tiered structure based on acreage permitted); and adding an inflationary adjustment factor of 2 percent compounded annually. In addition to these changes the regulation would provide "sources" with an opportunity to request a pre-application review by the agency for a fee.

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