September 8, 1995

South Coast Air Quality

Management District Board

Set a Public Hearing to Amend Rule 301 - Permit Fees


At its April 1995 meeting, the Governing Board approved the Business Clean Air Partnership (BCAP) proposal. The BCAP is an action plan to build greater mutual understanding and respect between AQMD and those it regulates. This partnership is implemented through a 12-point action plan which commits AQMD to:

  1. Work as a partner with businesses and the community to achieve healthful air;
  2. Support economic growth and regional competitiveness;
  3. Create more flexible and reasonable paths to clean air; and,
  4. Require cost-effective clean air technologies.

The BCAP plan is designed to assure continued progress toward clean air health standards within a context of economic recovery. It seeks to identify specific, concrete measures that can be undertaken by AQMD to promote economic growth, new jobs, and establish a framework for greater trust and mutual respect between AQMD and those it is required by law to regulate.

Point IV of the BCAP plan establishes a "High Employment, Low Pollution" (HELP) program with incentives to attract new high employment, low pollution manufacturers to the Basin. As part of the implementation of Point IV, AQMD has committed to waive annual operating permit renewal fees for two years for new manufacturing facilities which create 500 or more jobs and produce half the emissions per employee for that industry projected for the Year 2010.

Accordingly, staff is proposing an amendment to Rule 301 - Permit Fees, to initiate BCAP, Point IV, implementation. Subdivision (m), Fee Waiver, is being proposed for addition to Rule 301 to waive annual operating permit renewal fees for qualified high employment, low pollution manufacturers for two years.

California Health and Safety Code Section 40500 et seq. establishes AQMD's authority to adopt rules and regulations, including fee schedules to cover the actual cost of air quality programs designed to attain and maintain clean air. As the core purpose of the BCAP plan is to provide incentives to attract new "super-clean" manufacturers to the South Coast Air Basin, this amendment actually lowers fees for new facilities generating low levels of air pollution. As the actual cost of regulating these "super-clean" facilities will generally be less due to their lower levels of emissions, AQMD will be able to direct its resources towards reducing emissions at facilities with higher levels of emissions. As the region progresses towards clean air, it is appropriate to adjust fees to reflect significant advances in reducing emissions.

As part of its preliminary review, AQMD, as lead agency in accordance with the California Environmental Quality Act (CEQA), has reviewed proposed amended Rule 301 - Permit Fees pursuant to CEQA Guidelines Section 15061 - Review for Exemption. AQMD staff has concluded from the review for exemption process that proposed amended Rule 301 - Permit Fees, is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15273 - Rates, Tolls, Fares and Charges. The Notice of Exemption for the proposed project has been prepared in accordance with CEQA Guidelines Section 15062 - Notice of Exemption. The Notice of Exemption will be filed with the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties immediately following approval of the project, which includes certifying the Exemption.

Due to the administrative nature of these amendments and the certainty that these changes will not significantly affect air quality or emission limitations, no public workshops have been conducted. In addition, no socioeconomic assessment is required pursuant to Health & Safety Code Section 40440.8 because the proposed amendment will not significantly affect air quality or emissions limitations. Further this board letter will serve as the staff report.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

-- Set a Public Hearing on October 13, 1995 to amend Rule 301 - Permit Fees.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

Attachments

PL:ELP:WJ