BAY AREA AIR QUALITY MANAGEMENT DISTRICT
939 ELLIS STREET
SAN FRANCISCO, CA 94109
BOARD OF DIRECTORS MEETING
DATE: May 1, 2002 AGENDA NO: 11
 
PROPOSAL: Adopt Proposed Amendments to Regulation 3: Fees and Approve California Environmental Quality Act (CEQA) Notice of Exemption
SUMMARY: 11A: Public hearing to adopt proposed amendments to the District’s Fee Regulation and associated fee schedules.

11B: 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. The second hearing on item 11B will be held on June 5, 2002.

 
RECOMMENDED ACTION:

Adopt proposed amendments to Regulation 3 Fees and approve CEQA Notice of Exemption regarding same.
  William C. Norton
CEO/Executive Secretary



Background
Consistent with the recommendations contained in 1999 KPMG report, the District is proposing to adjust all District fees and fee schedules by 5.3 percent. This increase is equal to the 2001 Consumer Price Index (CPI) adjustment for the California Bay Area (San Francisco, Oakland and San Jose). The proposed amendments, coupled with the increases for the previous three fiscal years, will assure that District’s fee revenues are sufficient to fund its permit regulatory activities at current levels while maintaining District reserve accounts.

Proposal
The proposed revisions to Regulation 3, Fees were discussed at a Public Workshop held on March 22, 2002. Staff have considered and addressed all comments made at the Public Workshops. A workshop notice, detailing the proposed amendments, was sent to almost 7000 permit holders. No written comments were submitted as a result of the workshop.

The proposed changes are expected to maintain the District's permit revenues at or near current levels for FY 02-03. Although annual permit renewal fees are anticipated to increase by approximately $500,000 as a result of the 5.3 percent Consumer Price Index (CPI) adjustment, it is likely that permit fees revenues from New & Modified sources will be reduced by a similar amount. This projection is based on the fact that it is very likely that fewer applications for major power plants will be submitted during the next fiscal year.

All Hearing Board Fees, contained in Schedule A, including Excess Emission Fees, will also be increased by 5.3 percent. Likewise, fees for non-permitted activities, such as Asbestos Operations, Aeration of Contaminated Soil and Removal of Underground Storage Tanks will also be adjusted by the 5.3 percent increase in the CPI.

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 consider the potential impacts of that project on all environmental media. 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, 2002.




Attachment #1 - Staff Report
Attachment #2 - Proposed Amendments to Regulation 3