BAY AREA AIR QUALITY MANAGEMENT DISTRICT
939 ELLIS STREET
SAN FRANCISCO, CA 94109
BOARD OF DIRECTORS MEETING
DATE: June 7, 2000 AGENDA NO: 12
 
PROPOSAL: ADOPT PROPOSED AMENDMENTS TO REGULATION 3, FEES AND APPROVE CEQA NOTICE OF EXEMPTION
SUMMARY: 12 a: Public hearing to adopt proposed amendments to the District’s Fee Regulation and associated fee schedules.

12 b: First of two public hearings to adopt amendments to Schedule L: Asbestos Operations and Schedule Q: Aeration of Contaminated Soil and Removal of Underground Storage Tanks

 
RECOMMENDED ACTION:

Adopt proposed amendments to Regulation 3 Fees
  Ellen Garvey
Executive Officer



Background
Based on the recommendations contained in KPMG report the District is proposing increases in District fees and fee schedules ranging from 4.3 to 15 percent. The most significant finding of the study of the KPMG report, dated February 16, 1999, indicated that regulatory permit costs were at that time approximately 60 percent greater than permit fee revenues. The proposed amendments coupled with last year’s 15 percent increase, will substantially close this gap and continue District efforts to provide sufficient permit fee revenue to fund its permit regulatory activities.
Proposal
The proposed revisions to Regulation 3, Fees were discussed at a Public Workshop held on April 17, 2000. Staff have considered and addressed all comments made at the Public Workshop or provided to the District by May 15, 2000. Two general notices, detailing the proposed amendments, were sent to approximately 6500 permit holders and interested parties announcing the workshop and the public hearing dates.

The proposed changes are expected to increase the District's permit revenues by an estimated $1,500,000 for fiscal year 2000-2001. Approximately $500,000 of this total will come from the 4.3 percent Consumer Price Index (CPI) adjustment. The shifting of a number of specific source categories from Schedule F, Miscellaneous Equipment, to sub-schedules G1, G2 and G3 will account for $68,000 of the total. Lowering the applicability of the Major stationary Source Fees of Schedule M from 100 to 50 tons per year and the addition of PM10 to the pollutants subject to these fees will increase revenues by approximately $255,000.

Schedule A: Hearing Board Fees for variance applications for large companies will increase from at least $70 up to $540. For small businesses, variance fees will increase from $115 to $150 per application, but most other fees will be reduced from $60 to $50. New Schedule A, Attachment 1: Excess Emission Fee will charge $1.00 per pound of air contaminants, $5.00 per pound of specified toxic air contaminants and $1.12 per percentage point of opacity over the applicable standard for the period of variance.

For permitted sources, the proposed amendments will add a 4.3 percent cost of living increase and implement cost recovery recommendations, which will increase fees by the following amounts:

  • Schedule B: Combustion of Fuel, minimum fees - 15%, other fees - 7%;
  • Schedule C: Stationary Containers for the Storage of Organic Liquids, minimum fees - 15%, other fees - 5%;
  • Schedule D: Gasoline Transfer at Gasoline Dispensing Facilities, Bulk Plants and Terminals - 15%;
  • Schedule E: Solvent Evaporating Sources - 15%;
  • Schedule F: Miscellaneous Sources, fee minimums - 15%, Schedule G1 - 15%, Schedule G2 - 15%, Schedule G3 - 5%, Schedule G4 - 5%;
  • Schedule H: Semiconductor and Related Operations - 15%;
  • Schedule I: Dry Cleaners - 15%;
  • Schedule K: Solid Waste Disposal Sites - 15%;
  • Schedule M: Major Stationary Source Fees - 15%; In addition, PM10 will be added to the pollutants subject to Schedule M and the threshold for Schedule M applicability will be reduced from 100 tons per year to 50 tons per year.
  • Schedule P: Major Facility Review Fees - 15%.

The proposed amendments also increase filing fees for New and Modified Sources and Emissions Banking fees by 15%; will add certain types of sources to Schedules G1, G2 and G3; and will change the definition of small business to exclude those of greater than 10 employees and $500,000 annual income.

For non-permitted sources, the proposed amendments add a cost of living increase of 4.3% to Schedules L: Asbestos Operations and Q: Aeration of Contaminated Soil and Removal of Underground Storage Tanks.

The California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., and the CEQA Guidelines, 14 CCR 15000 et seq., require a government agency, such as the BAAQMD, that undertakes or approves a discretionary project to prepare documentation addressing the potential impacts of that project on all environmental media. If an agency's approval action on a project is considered exempt, CEQA does not apply. The District's proposed fee increase is statutorily exempt from the requirements of the California Environmental Quality Act as stated in the CEQA Guidelines Section 15273: "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies....." See also Public Resources Code Section 21800(b)(8).

The details of the staff proposal are contained in the staff report and in the attached copy of Regulation 3, Fees in strikeout and underline format.

The effective date of the proposed fee increases is July 1, 2000.




Attachment A - Staff Report
Attachment B - Revised Rule in Strikeout/Underline Format