BOARD MEETING DATE: July 9, 2004
AGENDA NO. 34

Amend Regulation III - Fees

SYNOPSIS:

At its June 4, 2004 meeting, the AQMD Board tentatively determined to amend Regulation III – Fees effective July 1, 2004 (except Rule 308(c)(2)), consistent with the amended staff recommendation presented at the June 4 meeting. The Board directed staff to revise Regulation III accordingly and continued the public hearing on Regulation III to July 9, 2004.

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for the proposed amendments to: Rule 301 - Permitting and Associated Fees; Rule 303 - Hearing Board Fees; Rule 304 - Equipment, Materials and Ambient Air Analyses; Rule 304.1 – Analyses Fees; Rule 306 – Plan Fees; Rule 307 – Fees for Air Toxics Emissions Inventory; Rule 307.1 - Alternative Fees for Air Toxics Emissions Inventory; Rule 308 - On-Road Motor Vehicle Mitigation Options Fees; Rule 309 - Fees for Regulation XVI; Rule 311 - Air Quality Investment Program (AQIP) Fees; and,
    
2. Amending the following Rules: Rule 301 - Permitting and Associated Fees; Rule 303 - Hearing Board Fees; Rule 304 - Equipment, Materials and Ambient Air Analyses; Rule 304.1 – Analyses Fees; Rule 306 – Plan Fees; Rule 307 – Fees for Air Toxics Emissions Inventory; Rule 307.1 - Alternative Fees for Air Toxics Emissions Inventory; Rule 308 - On-Road Motor Vehicle Mitigation Options Fees; Rule 309 - Fees for Regulation XVI; Rule 311 - Air Quality Investment Program (AQIP) Fees

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Staff had proposed two options for amending Regulation III –Fees at the June 4, 2004 Board meeting. Both options contained cost alignment proposals and an across the board fee increase; CPI (1.6%) for Option A, and a 12% (phased in over two years, 6% for FY 2004 -2005) for Option B. After public testimony and deliberation, the Board tentatively adopted a fee rule, effective July 1, 2004 (except Rule 308(c)(2)), that included the cost alignment proposals and a 3% (across-the-board) fee increase which by state law must be established as a 6% increase over two years. However, the Board at its June 4, 2004 meeting has determined that it will reevaluate the need for the second year increase, prior to its implementation, based upon new information available at the time of next year’s budget and fee rule adoption. Because exact rule language had not been prepared for that alternative, final action was delayed until a copy of the rule incorporating the 3% increase in each of the two fiscal years could be provided to the public and the Board for review prior to final adoption. The public hearing was continued until July 9, 2004 and any new testimony on the tentative Board determination will be taken prior to final action. Testimony can be limited to addressing the proposed 3% increases.

Since the revised Regulation III will not be adopted until July 9, 2004, a one-month delay will occur in the mailings for the annual emission fees. To ensure that all facilities have 60 days to file the report, staff has added the following language to Rule 301 (e):

(e)(15) Notwithstanding any other applicable Rule 301(e) provisions regarding the annual emissions report and emission fees, for the reporting period of July 1, 2003 to June 30, 2004, the fee payment and the completed annual emissions report shall be received by the District, or postmarked, on or before September 30, 2004 to avoid any late filing penalties specified in subparagraph (e)(10)(B).

In addition, the board is directing staff to reconvene the permit streamlining subcommittee and to evaluate programs relative to their federal and state mandates or whether they were being conducted by local prerogative. Programs will be evaluated for potential downsizing or up scaling. Staff has incorporated those provisions into the adoption resolution for this proposal.

Staff has made the necessary changes to the proposal and has circulated the document for public review. The only changes to the June 4, 2004 Agenda #40 Board Package are the proposed rule and Notice of Exemption as attached. All other documentation, including the socio-economic report remain valid and current with the current proposal falling within the bounds of the previous analysis. A copy of Agenda #40 is attached for reference.

Attachments (2,249 KB)

1. Resolution
2. Proposed Rule Language
3. Notice of Exemption/CEQA
4. Board Package from June 4, 2004 – Agenda Item #40

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