r 

Fields of Opportumties 

CHESTER J. CULVER, GOVERNOR 

PATTY JUDGE. LT. GOVERNOR 

February 17, 2009 

John B. Askew 

Regional Administrator 

U.S . Environmental Protection Agency, Region VII 

901 North Fifth Street 

Kansas City, KS 66101 

Dear Mr. Askew: 

APDg RFCEw~~~ 

FEB 2 ] 20C 

The Department requests revisions to the state's Title V program for the enclosed air quality 

administrative rule amendment. The Environmental Protection Commission (EPC) adopted the 

enclosed rule on December 9, 200, after the public hearing. The EPC has full legal authority to 

develop rules pursuant to Section 455B .133 of the Iowa Code. The state followed all applicable 

administrative procedures in proposing and adopting this rule. Enclosed are the required submittal 

elements for determination of plan completeness per 40 CFR Part 51, Appendix V. 

The notice was published in the Iowa Administrative Bulletin Vol. XXXI, No. 8, page 861-862, 

ARC 7220B. A public hearing was held on November 12, 2008, at the Air Quality Bureau in 

Urbandale. One written comment was received and is summarized in the attached Responsiveness 

Summary. The rule making was published as "adopted and filed" in the Iowa Administrative 

Bulletin Vol. XXXI, No. 14, page 1511, ARC 7473B. The effective date of this rule was February 

4, 2009. A copy of the published notice and filed document for this rule is enclosed. 

If you have any questions regarding this submittal, please contact Wendy Rains at (515) 281-6061 . 

Enclosures : 

IAB Vol. XXXI, No. 8 (10/08/2008), pages 861-862, ARC 7220B 

IAB Vol . XXXI, No. 14 (12/31/2008), page 1551, ARC 7473B 

Public Participation Responsiveness Summary 

cc: Wendy Rains, IDNR Air Quality Bureau (no enclosures) 

STATE O F IOWA 

DEPARTMENT OF NATURAL RESOURCES 

RICHARD A. LEOPOLD, DIRECTOR 

7900 Hickman Road, Suite 1 / Urbandale, Iowa 50322 

515-242-5100 FAX 515-242-5094 httg :lfwww iowacleanair.com/ 
IOWA 

ADMINISTRATIVE 

BULLETIN 

Puhlished Biweekly VOLUME XXXI NUMBER 8 

October 8, 2008 Pages 837 to 950 

CONTENTS IN THIS ISSUE 

Pages 847 to 950 include ARC 7209B to ARC 7259B and ARC 7261B to ARC 7269B 

ALL AGENCIES 

Agency identification numbers . . . . . . . . . . . . . . . . . 845 

Citation of administrative rules. . . . . . . . . . . . . . . . . 840 

Schedule for rule making. . . . . . . . . . . . . . . . . . . . . . . 841 

COLLEGE STUDENT AID COMMISSION(2831 

EDUCATION DEPARTMENT1281/"umbrella" 

Notice, All Iowa opportunity foster care 

grant program-awards, 9.4(5) ARC 7251B . . . . . 847 

ECONOMIC DEVELOPMENT, IOWA 

DEPARTMENT OF(2611 

Notice Terminated, Targeted jobs 

withholding tax credit program, 71 .1 to 

71 .6ARC7248B . . . . . . . . . . . . . . . . . . . . . . . . . . . 847 

Notice, Targeted jobs withholding tax 

credit program, 71 .1 to 71 .6 ARC 7249B . . . . . . . 848 

Notice, Small business disaster recovery 

financial assistance program, ch 78 

ARC 7236B . . . . . . . . . . . . . . . . . . . . . . . . . . . . .849 

Filed, Physical infrastructure assistance 

program (PIAP) eligibility, 23.7(1), 

61 .1(2), 61 .3(1), 61 .4(2), 61 .5, 61 .7(2), 

174.3(5) ARC 7231B . . . . . . . . . . . . . . . . . . . . . . . . 930 

Filed, Housing fund, amendments to ch 

25 ARC 7232B . . . . . . . . . . . . . . . . . . . . . . . . . . .930 

Filed, Film, television, and video project 

promotion program, 36.1 to 36.9 ARC 7247B . . . 931 

Filed, Regional sports authority districts, 

38.1 to 38.8 ARC 7237B . . . . . . . . . . . . . . . . . . . . . 932 

Filed Emergency, Small business disaster 

recovery financial assistance program, 

ch 78 ARC 7235B . . . . . . . . . . . . . . . . . . . . . . . . . .910 

Filed, Information technology training 

program, 103 .1 to 103 .13 ARC 7234B. . . . . . . . . 933 

Filed Emergency After Notice, Targeted 

industries networking fund, 107 .1 to 

107.8 ARC 7245B . . . . . . . . . . . . . . . . . . . . . . . . . . 912 

Filed, Targeted industries student 

competition fund, 108 .1 to 108 .8 ARC 7233B . . . 933 

Filed, Targeted industries career 

awareness fund, 109.1 to 109.9 ARC 7246B . . . . . 934 

Filed Emergency After Notice, Lean 

manufacturing institute, supplier 

capacity and product database, and 

management talent recruitment 

programs, chs 110 to 112 ARC 7243B . . . . . . . . . . 912 

Filed Emergency After Notice, River 

enhancement community attraction and 

tourism fund, amendments to chs 211, 

212 ARC 7244B . . . . . . . . . . . . . . . . . . . . . . . . . . .914 

EDUCATION DEPARTMENT(2811 

Notice, Competent private instruction and 

dual enrollment, 31.1 to 31 .10 ARC 7211B . . . . . . 851 

Filed, Physical restraint; confinement and 

detention, 103.1 to 103.8 ARC 7212B . . . . . . . . . . 935 

EDUCATIONAL EXAMINERS BOARD(2821 

EDUCATION DEPARTMENT1281i"umbrella" 

Notice, Class A license requirements, 

14.115 ARC 7252B . . . . . . . . . . . . . . . . . . . . . . . . . 850 

Filed, Superintendent 

endorsement-administrative 

experience, 14.142(4)"c" ARC 7250B . . . . . . . . . 935 

ENVIRONMENTAL PROTECTION 

COMMISSION(567] 

NATURAL RESOURCES DEPARTMENT/561/"umbrella" 

Notice, Maximum annual Title V 

operating permit fee, 22 .106(1) ARC 7220B. . . . . 861 
TAB 10/8/08 NOTICES 861 

ARC 7220B 

ENVIRONMENTAL PROTECTION COMMISSION[567] 

Notice of Intended Action 

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more 

persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1) "b. " 

Notice is also given to the public that the Administrative Rules Review Committee may, on its own 

motion or on written request by any individual or group, review this proposed action under section 

17A.8(6) at a regular or special meeting where the public or interested persons may be heard. 

Pursuant to the authority of Iowa Code section 455B .133, the Environmental Protection Commission 

hereby gives Notice of Intended Action to amend Chapter 22, "Controlling Pollution," Iowa 

Administrative Code. 

The purpose of this rule making is to increase from the current fixed dollar amount of $39 per ton 

to $62 per ton the maximum annual Title V Operating Permit fee that the Environmental Protection 

Commission can establish on the first 4,000 tons of actual emissions of each regulated pollutant emitted 

annually from a major source . Budget projections and estimates of actual emissions indicate that the 

annual fee will have to be increased above $39 per ton to maintain the current level of service in state 

fiscal years 2010 to 2015. 

The Department met with members of the public and industry and with environmental groups to 

obtain preliminary input on raising the maximum fee. The data, assumptions, and methodology used 

to arrive at the $62 per ton fee level cap and other changes were reviewed and discussed in detail at 

meetings on May 22 and June 5, 2008. The meetings were advertised in the State of Iowa's Public 

Meeting Calendar, on the Air Quality Bureau Web site, and by list server articles . The Department 

requested that comments be submitted by July 1, 2008. Two comments were received by this date . 

One comment suggested exploring additional grant opportunities while creating a new fee program for 

minor sources. The second comment concurred with the need to increase the fee cap but also requested 

that the Department continue to restrict the use of the fees to air quality programs for which they were 

intended ; to streamline pennitting processes; to seek other funding mechanisms ; and to recognize that 

clean air benefits all Iowans and, therefore, the State's general revenue funds should provide support for 

the Department. 

The Department received additional comments from MidAmerican Energy after the July 1, 2008, 

deadline . MidAmerican Energy raised several concerns on increasing the fee cap and the use of Title V 

funds for various program areas. The Department met with MidAmerican on July 24, 2008, to address 

their concerns . No additional comments have been received . 

The data, assumptions, and methodology were determined to be reasonable based on past budget 

information, available salary contract information, and past actual emissions trends . The Department 

will continue to work with interested parties to examine alternate fee scenarios. 

The increase from $39 per ton to $62 per ton is based on budget projections for the next three state 

fiscal years and estimates of the actual emissions during this period . Basing the maximum fee level on 

budget projections for the next five state fiscal years should prevent the need for the Commission to 

change the fee level cap provision in subrule 22.106(1 ;1 again for at least this period of time . The need to 

increase the maximum fee level to maintain the current level of services is the result of the combination of 

increases in staff salaries due to negotiated contract increases and projected decreases in actual emissions 

over this period . The $62 per ton maximum fee level is a 59 percent increase over the next five state fiscal 

years to account for estimated increases in salary expenditures, including indirect costs, and increases in 

the costs of equipment, including equipment to operate an ambient air monitoring network. 

Any person may make written suggestions or comments on the proposed amendment on or before 

November 13, 2008 . Written comments should be directed to Wendy Rains, Department of Natural 

Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Urbandale, Iowa 50322 . Comments may 

be sent by fax to (515)242-5094 or by electronic mail to wendy.rains(&,dnr.iowa.gov. 
862 NOTICES IAB 10/8/08 

ENVIRONMENTAL PROTECTION COMMISSION[567](cont'd) 

A public hearing will be held on November 12, 2008, at 10 a.m. at the Department's Air Quality Bureau offices located at 7900 Hickman Road, Urbandale, Iowa. Comments may be submitted orally 

or in writing during the public hearing. All comments must be received no later than November 13, 2008. Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility, should contact the Department of Natural Resources to advise of any 

specific needs. 

This amendment is intended to implement Iowa Code section 455B .133 . 

The following amendment is proposed. 

Amend subrule 22.106(1) as follows: 

22 .106(1) Fee established. Any person required to obtain a Title V permit shall pay an annual fee 

based on the total tons of actual emissions of each regulated air pollutant, beginning November 15, 1994. 

Beginning July 1, 1996, Title V operating permit fees will be paid on or before July 1 of each year. The fee shall be based on actual emissions required to be included in the Title V operating permit application 

and the annual emissions statement for the previous calendar year. The department and the commission will review the fee structure on an annual basis and adjust the fee as necessary to cover all reasonable costs required to develop and administer the programs required by the Act. The department shall submit 

the proposed budget for the following fiscal year to the commission no later than the March meeting. The 

commission shall set the fee based on the reasonable cost to run the program and the proposed budget 

no later than the May commission meeting of each year. The commission shall provide an opportunity 

for public comment prior to setting the fee. The commission shall not set the fee higher than S4} _$62 

per ton without adopting the change pursuant to formal rule making. 

ARC 7219B 

ENVIRONMENTAL PROTECTION COMMISSION[567] 

Notice of Intended Action 

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more 

persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(i) "b . " 

Notice is also given to the public that the Administrative Rules Review Committee may, on its own 

motion or on written request by any individual or group, review this proposed action under section 

17A.8(6) at a regular or special meeting where the public or interested persons may be heard. 

Pursuant to the authority of Iowa Code section 455B .304, the Environmental Protection Commission 

hereby gives Notice of Intended Action to amend Chapter 119, "Waste Oil," Iowa Administrative Code. 

These amendments are being proposed to incorporate the changes made to Iowa Code section 455D.13 

as amended by 2008 Iowa Acts, House File 2668. This legislation requires retailers that sell oil filters 

to post a sign informing their customers of the nearest collection site for used oil filters . It also requires 

businesses to recycle the used oil filters that they generate . 

The proposed changes to Chapter 119 include the addition of collection requirements for used oil 

filters, the addition of signage requirements for filter retailers, updates to the signage requirements for oil 

retailers, removal of some of the Department's responsibilities, and rescission of the state procurement 

regulations. The amendments also change the term "waste oil" to "used oil" to be consistent with Iowa 

Code section 455D.13 as amended by 2008 Iowa Acts, House File 2668, and EPA regulations. 

Any interested person may make written suggestions or comments pertaining to the proposed 

amendments on or before 4:30 p.m. on October 28, 2008. Such written materials should be directed 

to Kathleen Hennings, Land Quality Bureau, Iowa Department of Natural Resources, 502 East 9th 

Street, Wallace State Office Building, Des Moines, Iowa 50319-0034 ; fax (515)281-8646; or E-mail 

Kathleen .Henningsgdnr.iowa.gov . Persons wishing to convey their views orally should contact 

Kathleen Hennings by telephone at (515)281-5859 . 
IOWA 

ADMINISTRATIVE 

BULLETIN 

Published Biweekly VOLUME XXXI NUMBER 14 

December 31, 2008 Pages 1471 to 1526 

CONTENTS IN THIS ISSUE 

Pages 1483 to 1525 include ARC 7444B to ARC 7475B 

AGENDA ETHICS AND CAMPAIGN DISCLOSURE 

Administrative rules review committee . . . . . . . . . 1475 BOARD, iOWA[3511 

Notice, Campaign disclosure 

ALL AGENCIES procedures-committee assessments, 

Agency identification numbers . . . . . . . . . . . . . . . . 1481 4.59 ARC 7455B . . . . . . . . . . . . . . . . . . . . . . . 1487 

Citation of administrative rules. . . . . . . . . . . . . . . 1473 Filed, Appointment of officers to 

Schedule for rule making. . . . . . . . . . . . . . . . . . . . 1474 campaign committees, 4.4(1) ARC 7460B . . . 1517 

CREDIT UNION DIVISION[ 1891 Filed, Statement of organization, 4.6(2) 

COMMERCE oEPARTMENT1Iail" . .,br.Ba" ARC 7461B . . . . . . . . . . . . . . . . . . . . . . . . . . . 1518 

Filed, Update of references to Iowa Code, Filed, Electronic filing of verified 

amendments to chs 1, 3, 6, 7, 9 to 17, statement of registration, 4.32 ARC 7457B . . . . 1518 

19,23,25 ARC 7471B . . . . . . . . . . . . . . . . . . . 1509 Filed, Filing of reports by 527 

DENTAL BOARD[650] 

Committees, 4.34 ARC 7462B . . 

-

. . . 

.OTC 

. . . . . . . . 1519 

, 

PUBLIC HEALTH DEPARTMENT16411"umbrulla" 

Filed, Electronic filing of Form DR 

Notice Terminated, Guidelines on 4.35 ARC 7459B . . . . . . . . . . . . . . . . . . . . . . . . . 1520 

sedation, amendments to ch 29 ARC 7463B . . . 1483 Filed, Electronic filing of Form PFD, 7.1, 

7.3(5) ARC 7458B . . . . . . . . . . . . . . . . . . . . . . . 1520 

ELDER AFFAIRS DEPARTMENT13211 

Notice, Iowa family caregiver support 

program, ch 14 ARC 7456B . . . . . . . . . . . . . . . . 1483 

Filed, Senior living coordinating unit, 

16.2(7), 16 .4 ARC 7444B . . . . . . . . . . . . . . . . . . 1509 

Filed, Office of substitute decision maker, 

ch 22 ARC 7445B . . . . . . . . . . . . . . . . . . . . . . . . 1510 

ENVIRONMENTAL PROTECTION 

COMMISSION[567] 

NATURAL RESOURCES DEPART:NENT1561]"umbrella" 

Filed, Maximum annual Title V operating 

permit fee, 22 .106(1) ARC 7473B . . . . . . . . . . . 1511 

Filed, Closure of existing MSWLF units, 

113,2(8), 113.2(10)"a," 113 .3 ARC 7474B . . . . 1512 

Filed, Used oil and used oil filters, 119.1 

to 119 .9 ARC 7475B . . . . . . . . . . . . . . . . . . . . . . 1516 

HUMAN SERVICES DEPARTMENT[4411 

Notice, SSA program-annual 

adjustments to eligibility and payment 

levels, 51 .4(1), 51 .7, 52.1 ARC 7472B . . . . . . . 1488 

Filed Emergency, SSA program-annual 

adjustments to eligibility and payment 

levels, 51 .4(1), 51 .7, 52.1 ARC 7470B . . . . . . . 1507 

IOWA FINANCE AUTHORITY12651 

Notice Terminated, 3umpstart housing 

assistance program, ch 29 ARC 7468B . . . . . . . 1489 

Filed, Second amended 2009 qualified 

allocation plan, 12.1 ARC 7469B . . . . . . . . . . . . 1521 
IAB 12/31/08 FILED 1511 

ARC 7473B 

ENVIRONMENTAL PROTECTION COMMISSION[567] 

Adopted and Filed 

Pursuant to the authority of Iowa Code section 455B.133, the Environmental Protection Commission 

hereby amends Chapter 22, "Controlling Pollution," Iowa Administrative Code. 

The purpose of this amendment is to increase the maximum dollar per-ton fee specified in 

567-subrule 22.106(1). This is the maximum fee that the Environmental Protection Commission can 

establish on the first 4,000 tons of actual emissions of each regulated air pollutant emitted annually 

from sources subject to the Title V operating permit program. There are currently 273 sources in the 

state that are subject to this program. 

Notice of Intended Action was published in the Iowa Administrative Bulletin on October 8, 2008, as 

ARC 7220B. A public hearing was held on November 12, 2008. The Department received one written 

comment prior to the end of the public comment period on November 13, 2008. One written comment 

was also received at the public hearing. No oral comments were received . Based on consideration 

of the comments received, the Department has changed the duration of the fee cap from five to three 

years. The Department has also revised the proposed fee cap from $62 to $56, which is estimated to 

provide sufficient funding for three years rather than the proposed five years. A public participation 

responsiveness summary is available from the Department upon request. 

Budget projections and estimates of actual emissions indicate that the annual Title V fee will have to 

be increased above $39 per ton to maintain the current level of service in state fiscal years 2010 through 

2012 . The Department will continue to work with interested parties to examine alternate fee scenarios. 

The increase from $39 per ton to $56 per ton is based on budget projections for the next three state 

fiscal years and on estimates of actual emissions during this period. Basing the maximum fee on budget 

projections for the next three state fiscal years should prevent the need for the Commission to change the 

maximum dollar per-ton fee provision in subrule 22.106(1) again for at least this period of time . The need 

to increase the maximum fee to maintain the current level of services is the result of the combination 

of projected increases in staff salaries due to negotiated contract increases, including indirect costs; 

increased equipment and operating costs for the state's ambient air monitoring network; and projected 

decreases in actual emissions. 

This amendment is intended to implement Iowa Code section 455B.133 . 

This amendment will be effective on February 4, 2009. 

The following amendment is adopted. 

Amend subrule 22.106(1) as follows: 

22.106(1) Fee established. Any person required to obtain a Title V permit shall pay an annual fee 

based on the total tons of actual emissions of each regulated air pollutant, beginning November 15, 1994 . 

Beginning July 1, 1996, Title V operating permit fees will be paid on or before July 1 of each year. The 

fee shall be based on actual emissions required to be included in the Title V operating permit application 

and the annual emissions statement for the previous calendar year. The department and the commission 

will review the fee structure on an annual basis and adjust the fee as necessary to cover all reasonable 

costs required to develop and administer the programs required by the Act. The department shall submit 

the proposed budget for the following fiscal year to the commission no later than the March meeting. The 

commission shall set the fee based on the reasonable cost to run the program and the proposed budget 

no later than the May commission meeting of each year. The commission shall provide an opportunity 

for public comment prior to setting the fee. The commission shall not set the fee higher than $W $56 

per ton without adopting the change pursuant to formal rule making. 

[Filed 12/10/08, effective 2/4/09] 

[Published 12/31/08] 

ED1TO1t's NOTE: For replacement pages for IAC, see IAC Supplement 12/31 /08. 
PUBLIC PARTICIPATION RESPONSIVENESS SUMMARY 

FOR 

567 IOWA ADMINISTRATIVE CODE CHAPTER 22 CONTROLLING POLLUTION 

TITLE V FEE CAP 

Introduction 

The Notice of Intended Action was published in the Iowa Administrative Bulletin (IAB) on 

October 8, 2008, as ARC 7220B. A public hearing was held on November 12, 2008 . Three 

people from MidAmerican Energy attended the hearing. They provided one written comment at 

the public hearing and one written comment before the public comment period closed on 

November 13, 2008 . A summary of the comments and the department's response is provided 

below . 

Public Comment: 

A summary of written comments submitted by Jon Kallen, MidAmerican Energy, 666 Grand 

Avenue, Des Moines, IA 50309, as follows: 

IDNR proposes to exceed the current emissions fee cap of $39 per ton of emissions with 

potential increases to $50.25 in state fiscal year (SFY) 2010, $51 .65 in SFY 2011, $55 .30 in SFY 

2012, $58.50 in SFY 2013, and $61 .80 in SFY 2014. MidAmerican Energy (MidAmerican) has 

specific concerns about the amount of this proposed increase in the emissions fee cap in the Title 

V budget. Furthermore, these increases would place Iowa's Title V emissions fees at the top of 

all states with delegated air programs. 

IDNR has stated that any increase in the cost per ton of emissions fees in the Title V budget will 

be offset by reductions in source emissions related to added pollution controls put in place 

because of the Clean Air Interstate Rule (CAIR). Specifically, the IDNR contends that with the 

projected decrease in emissions it is necessary to address the future Title V program funding 

deficit with an increase in per ton emissions fees . However, the proposed budget only shows a 

decrease in tonnage from 224,000 tons in SFY 2009 to 216,000 tons in SFY 2014, which is a 

small decrease and insufficient to justify such a large per ton fee increase . A loss in 8,000 tons of 

emissions (at $39 per ton) may yield lost revenues of approximately $312,000. However, almost 

doubling the per ton emissions fee for 8,000 tons of emissions represents a disproportionate 

increase . 

Further, while there is the potential for a decrease in overall fees for some larger facilities, many 

of these reductions for large stationary sources will still keep actual emissions over the 4,000 ton 

cap; therefore there will not be any resulting decrease in revenue. Emissions fees paid to the 

IDNR will actually increase substantially under the proposed increases in the per ton emissions 

fee. 
MidAmerican is supportive of a modest emissions fee cap of $50.25 to ensure that the air quality 

program has sufficient resources to fund a robust program. If future IDNR budget projections 

demonstrate the need to raise the fee cap above the $50 .25 per ton of emissions, the IDNR still 

has the option to initiate a rulemaking to request additional funding. 

Department Response: 

MidAmerican references the draft Title V budget for state fiscal year (SFY) 2010 - 2014. A 

draft budget for the next five years was prepared in order to develop the fee cap proposal. As 

explained in the rule preamble, in stakeholder meetings, at the DNR.-MidAmerican meeting on 

July 24, 2008, at Departmental Client Contact meetings, and to the Administrative Rules Review 

Committee on November 7, 2008, the quoted increases are draft projections based on a five year 

budget using the worst case scenarios for the Title V program. The Department is not proposing 

to increase the Title V fee for SFY 2010 or any other year based on the projection. The Title V 

fee for SFY 2010 will be presented to the Department's Environmental Protection Commission 

in March 2009 for information and May 2009 for decision . The estimated SFY 2010 fee will not 

be known until February 2009. 

MidAmerican indicates the proposal would create the highest fee among delegated programs. 

This is an inaccurate characterization and is incorrect. The proposal is to raise the maximum fee 

cap based on a five year projection. It does not establish the fee. The Title V program was 

created by the 1990 Clean Air Act Amendments. The Department's Title V program, the 

structure for assessing fees, and the fee cap were developed by a workgroup of affected 

stakeholders, including MidAmerican, in the early 1990s. Title V programs in other States 

typically do not have a maximum fee cap. States created their Title V programs based on EPA 

guidelines but customized the program to fit the needs of the State. It is very difficult to compare 

Title V programs from one State to another due to the program customization. For example, 

some states require fees for applications and modifications in conjunction with annual emission 

fees . Other states require annual emissions fees on potential emissions rather than actual 

emissions which results in higher revenues for the same dollar per ton fee. It should be noted 

that the State of Nebraska, which has a Title V fee structure very similar to the Department's, 

charged $57 per ton of actual emissions in 2008 while the Department's projected fee for 2009 is 

$50.25 per ton. 

MidAmerican states that it is disproportionate to double the fee for an 8,000 ton decrease in 

actual emissions. Again, this proposal is to raise the maximum fee and not the fee itself. While 

the level of actual emissions is an important factor in establishing the Title V fee each year, the 

Title V budget is not based on a single factor . The Department's Title V program charges an 

annual fee based on the program's budgetary demands. The fee must provide for programmatic 

increases such as personnel expenses, program regulatory requirements, equipment expenses, 

decreased (or increased) emissions, and other factors associated with developing and 

administering programs for major sources. It is therefore not possible to correlate an individual 

factor, like an 8,000 ton projected emissions decease, directly to the change in the fee or fee cap . 
The program has seen an increase in regulatory demands that impact major sources, a decline in 

the number of facilities triggering the program, and a decline in actual emissions over the last 

few years . The trend of declining emissions is anticipated to continue in the future across all 

sectors. It is not based solely on electrical generation units or on federal requirements such as the 

Clean Air Interstate Rule. 

While emissions decreases are always desirable, a decrease in emissions does not correlate to a 

decrease in the program requirements. For example, emissions decreases do not impact the ongoing need to operate and update the ambient air monitoring network, collect and process 

emissions inventories, conduct compliance activities, and complete planning and program 

development activities . 

MidAmerican recommends a fee cap that worse-case projections indicate would only be adequate 

for one state fiscal year. They also advise that additional future rulemakings can be initiated to 

raise the cap again as necessary. Additional rulemakings remove staff from working on actual 

major source programmatic requirements and require stakeholders to rearrange schedules and 

priorities to participate in workgroup discussions. This recommendation is also contrary to the 

Department's efforts and the request of many industry stakeholders to reduce the number of 

rulemakings conducted each year. 

It is important to emphasize that any Title V fees remaining at the end of a state fiscal year are 

applied to the next year. Staff estimate the ending Title V fund balance as part of the annual 

budget process. Remaining Title V funds are not diverted to other program areas. 

Recommended Actions 

The commenter recommended a fee cap increase that was consistent with a budget projection for 

a time period shorter than five years. The Department reviewed the fee cap projections for a 

shorter timeframe, including the latest refinements to the budgetary projections based on federal 

funding uncertainties, upcoming regulations and grant opportunities. Based on these 

considerations, the Department will modify the text of the adoption in Chapter 22 to reflect a 

maximum fee of $56. This fee cap level is projected to provide sufficient funds for the next three 

state fiscal years rather than the five state fiscal years proposed in the Notice of Intended Action.