August 11, 1995
South Coast Air Quality
Management District Board
California Health and Safety Code Section 40500 et seq. establishes the South Coast Air Quality Management District's (AQMD) authority to adopt rules and regulations, including fee schedules, to cover AQMD's actual costs in attaining health-based air standards. One type of fee for sources emitting four tons or more of criteria pollutants is the annual operating permit emissions fee.
In 1994, the AQMD switched from a calendar to a fiscal year reporting period for emission fees. During the transition, facilities submitted two emissions fee reports in 1994. The first report due in the Spring of 1994 represented emissions for the calendar year 1993, and the second report due in August 1994 represented emissions for the first six months of 1994. Staff reductions, as well as having two submittals to analyze, resulted in a delay in completing the evaluations of the emissions fee reports.
Currently under Rule 301(e)(5)(B) and (e)(5)(C) the penalty for underpayment of emission fees is 15 percent if the underpayment is determined within one year of the due date, and 50 percent if it is determined after one year from the due date. Recently, underpayments have been discovered more than one year after the due date which would normally have been discovered within one year if it had not been for the transition to the fiscal year reporting period. To accommodate the transition from a calendar to fiscal year reporting cycle, Proposed Rule 301.2 seeks to extend the 15 percent penalty period from one to two years for the two reporting periods: calendar year 1993 and the first half of the 1994 calendar year.
AQMD staff has reviewed proposed Rule 301.2 and has determined with certainty that it is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15273 - Rates, Tolls, Fares and Charges. A Notice of Exemption has been prepared pursuant to CEQA Guidelines Section 15062 - Notice of Exemption. Notices of Exemption will be filed with the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties immediately following approval of the project by the AQMD Governing Board, which includes certifying the Exemption. Questions regarding the Notice of Exemption should be directed to Steve Smith at the above address or by calling (909) 396-3054.
Proposed Rule 301.2 extends the 15 percent underpayment penalty period from one to two years. The underpayment penalty during the second year is reduced from 50 to 15 percent. This provides regulatory relief. Thus, the proposed rule is not expected to result in any adverse socio-economic impacts.
THEREFORE IT IS RECOMMENDED THAT YOUR BOARD
--Adopt Proposed Rule 301.2 - Annual Operating Permit Emission Fee - Reduced Penalty for Underpayments
Respectfully,
James M. Lents, Ph.D.
Executive Officer
BRW:JB:EC:ME:ms
ms/a/Exec95-001:BL301.2
August 11, 1995
PROPOSED RULE 301.2 - ANNUAL OPERATING PERMIT EMISSION FEE - REDUCED PENALTY FOR UNDERPAYMENTS
For the two reporting periods calendar year 1993 and January 1 through June 30, 1994 respectively, if an emission fee is timely paid, and if within two (2) years after the sixtieth (60th) day from the official due date it is later determined to be less than ninety percent (90%) of the full amount that should have been paid, a fifteen percent (15%) penalty shall be added, in lieu of the 50% otherwise required by Rule 301 (e)(5)(C). The penalty shall be calculated on the difference between the amount actually paid and the amount that should have been paid, to be referred to as underpayment. If payment was ninety percent (90%) or more of the correct amount due, the difference of underpayment shall be paid but with no penalties added. The fee rate to be applied shall be the fee rate in effect for the year in which the emissions actually occurred.